Faqs
FAQS
Frequently Asked Questions
Go through some frequently asked questions and shipment terminologies that you might find useful in making a shipment
WHAT IS EX WORKS (EXW) /DELIVERY AT COMMERCIAL ENTERPRISE?
“Ex works” means the seller fulfils delivery obligation by keeping the goods at its workplace (factory, storehouse etc.) for purchaser. Unless otherwise agreed, the seller is not responsible for loading the goods to a vehicle provided by purchaser or for clearing the goods through export customs. The buyer undertakes responsibility for any expenses and risks about the carriage of goods beginning from the workplace of seller until the destination. This type of sale comprises least liability for seller among all other methods.
WHAT DOES FREE ALONGSIDE SHIP (FAS) MEAN?
“Free Alongside Ship” means the seller delivers the goods when they are placed alongside a ship at prescribed port of loading. As of then, the buyer undertakes any expenses, damages or losses, as well as relevant risks about the goods.
FAS requires customs clearance of goods by the seller for exportation.
FREE ON BOARD (FOB) / DELIVERY ON BOARD?
In this method, the seller is considered to have fulfilled its liability of delivery once the goods reach the ship’s rail at prescribed port of loading. From then on, buyer undertakes any expense, loss, damage or risks about the goods. In case the ship rail signifies nothing in practice (such as in roll-on/roll-off or container carriage), the term FCA will be more appropriate to employ
COST, INSURANCE AND FREIGHT (CIF)?
In this method, the seller bears the same liabilities as in CFR. In addition, the seller has to provide seafreight insurance against loss and damage risks during goods transport. Seller makes the insurance contact and pays premiums. The buyer should be aware that in this method, the seller only has the obligation to provide minimum coverage.
This term also signifies that the seller has to clear goods through customs for export. This term is exclusively employed for seafreight and inland transport. In case ship’s rail has no significant meaning in practice, it is more appropriate to use the term CIP.
DELIVERED AT FRONTIER (DAF)?
In this method, the liability of seller ends when the goods are cleared through customs for export and rendered disposable at a border location or before the customs border of adjacent country.
The term “border” may be used for any border, including that of export country. Therefore, it is vital to always define the border precisely, so as to signify a point or location within terminology