In this case, the Seller must bear the pre-carriage, main carriage and post-carriage costs, up to the terminal of destination (Warehouse, railway and air cargo terminal etc.. ).
The Seller bears all costs and risks (damage and loss) until the goods are delivered to the named Terminal (point of transfer of risks to the buyer). Note that the unloading of the goods is under Seller’s responsibility and that the delivery is deemed completed when the goods are placed at the buyer’s disposal unloaded in the agreed terminal.
If the buyer fails to collect the goods within the agreed period and from the agreed place, he will be held accountable for potential risks (damage and loss).
The Seller is also liable for export custom clearance formalities (such as export licence).
In much the same way, the Buyer must pay for post-carriage costs and comply with import custom clearance (such as import licence, duties, taxes, VAT).
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)
Furthermore, the seller has the obligation to provide the transport documents needed by the buyer for claiming the goods from the carrier in the Terminal of destination.
Any pre-shipment inspection that might be required by law in the seller’s country is at the seller’s expense.
Moreover 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 of paramount importance to specify the exact point of delivery in the Terminal (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