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Shipping terms are important

Shipping terms are important

Important Shipping Terms DDP - Delivery Duty Paid: This term refers to the situation in which the seller delivers the goods when the goods are available to the buyer, cleared for import, and then unloaded at the place of destination. The seller bears all costs and risks associated with the transportation of the goods to the place and is obliged to clear the goods and pay taxes for both export and import.

EXW – Ex Works:

However, this term means that the seller is not obligated to load the goods in the mode of transport specified by the buyer. Instead, the seller has to deliver the product to a specified location and the buyer has to bear the transportation costs. The seller loads the goods onto the buyer's transport at the point of dispatch and may be responsible for them throughout the journey to and from the final destination.

CIF:

This term means an agreement whereby the seller delivers goods on board the ship or purchases goods that have already been delivered. There may be a risk of loss or damage to the goods when the goods are on board the ship. The seller must pay the costs and transportation necessary to bring the goods to the specified port. The seller also undertakes to insure the buyer against the risk of loss or damage to the goods in transit.

FOB:

It is the shipping term used to indicate whether the seller or buyer is responsible for goods damaged or destroyed during shipment. This term is used to refer to the person responsible for paying the shipping fee. This term refers to the place where the ownership of the goods is transferred from the seller to the buyer. The seller pays the freight and the buyer receives the address once it is shipped.

CFR:

It is a legal term used in foreign trade contracts.

The seller is not responsible for purchasing insurance against the risk of loss or damage to the shipment during transit.

This term is widely used for goods transported by sea.

DAP:

The seller is responsible for arranging the shipment and delivery of the goods ready for unloading.

The responsibility for the risk passes to the buyer as soon as the goods are available for unloading.

The buyer is responsible for import customs clearance including related costs.

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