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I.C.C. INCOTERMS
(INTERNATIONAL COMMERCIAL
PRACTICES COMMISSION)
http://www.iccwbo.org/incoterms/id3040/index.html
Sending goods from one country to another, as part of a commercial transaction, can be a risky business. If they are lost or damaged, or if delivery does not take place for some other reason, the climate of confidence between parties may degenerate to the point where a lawsuit is brought. However, above all, sellers and buyers in international contracts want their deals to be successfully completed.
If, when drawing up their contract, buyer and seller specifically refer to one of the ICC Incoterms, they can be sure of defining their respective responsibilities, simply and safely. In so doing they eliminate any possibility of misunderstanding and subsequent dispute. Please find below the most commonly used Incoterms:
| EXW
EX WORKS (...named place) EX works - means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used. FCA FREE CARRIER (...named place) FAS FREE
ALONGSIDE SHIP (...named
port of shipment) DDP DELIVERED
DUTY PAID (...named
place of destination) |
FOB
FREE ON BOARD (...named port of shipment) Free on Board - means that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. CFR/CF COST AND FREIGHT (...named port of destination) CIF COST,INSURANCE
AND FREIGHT (...named
port of destination) CPT CARRIAGE
PAID TO (...named
port of destination) |
For a more detailed explanation of the terms referred to above or if additional terms are needed please feel free to contact us.
The American Companies
Custom House Brokers - Foreign Freight Forwarders
N.V.O.C.C.
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NEW
JERSEY (HQ) |
NEW
JERSEY (ACD) |
CALIFORNIA |
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Overseas Locations (Owned and Operated by The American Companies)*
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HONG
KONG (HQ) |
HONG
KONG (Airfreight) |
SHENZHEN |
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SHANGHAI |
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NINGBO |
DALIAN |
TIANJIN |
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FUZHOU |
GUANGZHOU |