In this case, the Seller must bear the pre-carriage, main carriage and post carriage costs up to the agreed place of the destination (Buyer’s warehouse for e.g.).
The Seller bears all costs and risks (damage and loss) until the goods are delivered at the agreed place, however the unloading is under the buyer’s responsibility. In other words, the delivery is deemed completed (transfer of risks to the buyer) when the goods are placed at the buyer’s disposal, ready for being unloaded in the agreed named place.
The Seller is also liable for export custom clearance formalities (such as export licence).
In much the same way, the Buyer must comply with import custom clearance (such as import licence, duties, taxes, VAT).
Any pre-shipment inspection that might be required by law in the seller’s country is at the seller’s expense.
Furthermore, the seller has the obligation to provide the transport documents needed by the buyer for claiming the goods from the carrier
Although there is no formal obligation regarding insurance coverage, upon buyer’s request the seller must provide any information needed for insuring the goods (at the buyer’s expense)
The Seller must assist the Buyer for obtaining documents that might be required for the importation.
Note that the related costs engendered by such assistance are at the Buyer’s expense.
Usual Documents required:
It is very important to specify the exact point of delivery in the country of destination (transfer of risks to the buyer) as well as obtaining a contract of carriage, which reflects this precise location.
Ex Works (EXW) Click here
Free Carrier (FCA) Click here
Free Alongside Ship (FAS) Click here
Free on Board (FOB) Click here
Cost and Freight (CFR) Click here
Cost, Insurance and Freight (CIF) Click here
Carriage paid to (CPT) Click here
Carriage Insurance paid to (CIP) Click here
Delivered at Terminal (DAT) Click here
Delivered at place (DAP) Click here
Delivered Duty Paid (DDP) Click here
Incoterms Checklist Click here