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Earth Customs, Inc. - Earth Cargo, Inc. – Your Travel Agent for Cargo

Terms of Sale


FOB (Free on Board): Term only applies to sea transports when the seller delivers when the goods pass the ship's rail in the port of shipment. The buyer has to bear all costs and risk of loss or damage to the goods from that point. The seller must clear the goods for export. Use FCA for similar airfreight/truck.
 
CFR (Cost and Freight): Term only applies to sea transports. Seller delivers when the goods pass the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the name port of destination. The risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. The seller must clear the goods for export. Use CPT for similar airfreight/truck.

DEQ (Delivered Ex-Quay): Term only applies to sea transports. The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging them on the quay. The buyer clears the goods for import and pays for all formalities, duties, taxes and other charges upon import.

 

DDU (Delivered Duty Unpaid): The seller delivers the goods to the buyer, not cleared for import and not unloaded from any arriving means of transport at the named place of destination. The seller bears all costs and risks to bring the goods thereto, including storage, demurrage, waiting time, etc., but excluding all destination customs charges (brokerage, taxes, duties).

DDP (Delivery Duty Paid): Seller delivers the goods to the buyer, not cleared for import and not unloaded from any arriving means of transport at the named place of destination. The seller bears all costs and risks to bring the goods thereto, including all destination customs charges (brokerage, taxes, duties), and including storage, demurrage, waiting time.
 

EXW (Ex Works):
The seller delivers when freight is placed at the disposal of the buyer at the seller's place of business or another place that is not cleared for export or loaded on any vehicle for collection. Buyer bears all risks in the removal of the goods from the seller.

FCA (Free Carrier):
The seller delivers the goods cleared for export to the carrier nominated by the buyer at the named place. If delivery occurs at the seller's premises, the seller is responsible for the loading of goods.

FAS (Free Alongside Shipping):
The seller delivers when the goods are placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of all damage that occurs to the merchandise. It is the seller's responsibility to clear all goods.

 
DAF (Delivered at Frontier): The seller fulfills his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term “frontier” may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term. The term is primarily intended to be used when goods are to be carried by rail or road, but it may be used for any mode of transport.

DES (Delivered Ex-Ship): The seller fulfills his obligation to deliver when the goods have been made available to the buyer on board the ship un-cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. This term can only be used for sea or inland waterway transport.

CIP (Carriage Insurance Paid To): The seller delivers the goods to the carrier nominated by him. The seller pays costs necessary to bring the goods to the named destination. The buyer bears all risks and any other costs occurring after goods have been delivered. The seller procures and pays for insurance against the buyer's risk of loss or damage to the goods during the carriage. If subsequent carriers are used for carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. the seller clears the goods for export. Trade Shows: Expand your merchandise distribution to new lucrative markets through trade shows. ECI can ship your goods to and from shows at low rates, helping you spread your product all over the globe efficiently with lower costs.
 

CIF (Cost, Insurance and Freight): Term only applies to sea transports. the seller delivers when the goods pass the ship's rail in the port of shipments where the rail is not applied.

CPT (Carriage Paid To): The seller delivers the goods to the carrier nominated by him. The seller pays cost necessary to bring the goods to the named destination. The buyer bears all risks and any other costs occurring after the goods have been delivered. If subsequent carriers are used for delivery to the agreed destination, the risk passes when the goods have been delivered to the first carrier; the seller clears the goods for export.

 
CAF
(Currency adjustment factor): Surcharge applied to freight rates by shipping lines or set by liner conferences on behalf of their members. It is to ensure that the revenue of the shipping lines is unaffected by movements in the currencies in which transactions are carried out by the lines in relation to the tariff currency. It is normally expressed as a percentage of the freight and may be negative as well as positive.

 

 

 


 


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Earth Customs, Inc.  310.670.7300  ext. 101   Earth Cargo, Inc.
 

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