TRADE LINKAGES
It refers to when the seller, in the seat or other designated locations (such as workshop, factory or warehouse )hands the goods to the buyer, the delivery is completed, the seller does not provide export customs clearance or any transport .The term is a term the seller liable to the smallest.The buyer must bear all the costs and risks of the goods at the location of the seller .However, if the two sides hope the seller bears all the costs and risks of the goods , it shall be clearly stated in the contract of sale. If the buyer Can’t directly or indirectly handle export formalities, the term should not be used, while FCA should be used, in the condition the seller agrees to load the goods and bear the costs and risks.
Cost and Freight refers to transferring the goods on the ship in port of shipment delivery, the seller shall pay the costs for the goods shipped to the specified destination port.But the risk of the goods transfers when the goods are transferred .
It refers to Cost plus Insurance and Freight.
according to the terms, the cost includes the cost of transport from the port of shipment to the port of destination and the contract insurance , so the seller besides the same obligations as CFR terms, has to pay the cargo Insurance . According to the general international trade practice, the Insurance should be at 10% of the CIF value addition.If buyers and sellers have no agreement on the specific insurance, the seller need to achieve minimum standard of insurance , if the buyer may require the war insurance , under the premise of the insurance premium shall be borne by the buyer, the seller shall add the insurance.for the seller, if possible, it has to be arranged in the contract currency.
“Delivery duty paid (…Specify the destination) “refers to the seller in the specified destination, transfers the goods to the buyer with the import customs clearance completed and without unloading. The seller shall bear all costs and risks of the goods shipped to the specified destination and charges, including to pay any “duty ” dealing with customs at the destination (including the responsibility of the customs formalities and risk, and pay poundage, custom duty, taxes and other fees).
Under EXW the seller is liable for the minimum while maximum under DDP .
If the seller fails to obtain import license, directly or indirectly, the term should not be used.
But, if the parties concerned to exclude all the expenses (such as VAT) from the seller’s obligation , it should be clearly stated in the contract of sale.If the parties wish the buyer to assume the risks and costs of import, the DDU term should be used.The term applies to any mode of transport, but when the goods at the port of destination or port of delivery on board, DAP term should be used.
When at the specified location and specific delivery points on the border , before the customs border in neighboring countries, the seller transfers the goods without unloading to the buyers ,with the export goods clearance completed but import customs clearance not completed, then the delivery is completed.The word “border” can be used for any border, including exporting countries border.Therefore, point accurately defined border with the specified location and specific delivery points , it is extremely important.
However, if the buyer and the seller hope the seller is responsible for unloading, bears the risks and costs, it should be clearly stated in the contract of sale.
This term can be used in each transport mode of delivery on land border, when the goods is transferred on the ship or port at the port of destination , DES or DEQ should be used.
The destination delivery means the seller transports the goods to the destination specified by the buyer, transfers the goods (without unloading) to the buyer, then completes the delivery of the goods.The term is from INCOTERMS 2010.
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