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E) COST AND FREIGHT DELIVERY /(CFR)
In this term, the seller has to pay all the necessary expenses and freight cost in order to ship the goods to the specified destination port. The risks of loss and damage related to the goods – which may increase the expenses – are transferred to the buyer as soon as the goods cross over the board of the vessel at the port of charging.
The term, CFR, indicates that the seller has to transmit the goods through the customs for export.
F) COST, INSURANCE AND FREIGHT DELIVERY / (CIF)
In this term, the seller holds the same obligations as in the CFR term. However in addition, he has to procure a marine insurance covering the risks of loss or damage during the transportation of the goods. The seller concludes the insurance agreement and pays the insurance premium. The buyer must be aware that the seller is obliged to procure a minimum insurance coverage in this term. This term indicates that the seller has to transmit the goods through the customs for export. This term is used only for sea lane or inland water transportation. If ‘the board of the vessel’ has no definite meaning in practice, it is more convenient to use the CIP term.
G) CARRIAGE PAID TO DELIVERY / (CPT)
This term means that the seller has paid the necessary freight cost for the transportation of the goods to the negotiated destination point. The risks pertaining to the loss and damage of the goods and additional costs which may arise after the delivery of the goods to the forwarder, are transferred to the buyer upon the delivery of the goods to the custody of the forwarder. The forwarder is the entity who undertakes the transportation process sourcing from railway, land route, sea lane, airway, inland water transportation or a combination of these in a transportation agreement.
H) CARRIAGE AND INSURANCE PAID TO DELIVERY / (CIP)
In this term, the seller holds the same obligations as in the CPT term. However in addition, he has to procure an insurance covering the risks of loss or damage during the transportation of the goods. The seller concludes the insurance agreement and pays the insurance premium.
I) DELIVERED AT FRONTIER / (DAF)
This term predicates that the delivery obligation of the seller shall terminate upon the transmission of the goods through the customs for export and keeping the goods available a the buyer’s disposal at a specified location or point on the border however in front of the customs border of the neighbor country.
The term 'border' may be used for any borders including the border of the exporting country. Consequently, it is vital that the border mentioned in the term should be defined in a precise manner by indicating point or location.
J) DELIVERED EX SHIP / (DES)
In this term, the delivery obligation of the seller terminates by keeping the goods available at the buyer’s disposal on the board of the vessel before transmission through the import customs at the specified destination port. The seller undertakes all necessary expenses and risks in order to deliver the goods to the specified destination port. This term can be used only for sea lane or inland water transportation.
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