One of the most important agreements that are being worked on in the import and export operations which are distributed in a distinctive way and each individual is free to choose the term that he will deal with, and that is among the things that are agreed upon between the parties, whether the seller or the buyer, as the business is formed and documented according to this matter, It is also linked to that agreement to the end of business delivery. A wide range of terms that are used in shipping operations and those terms are agreed upon by a group of committees for the well-known commercial process, they are dealt with in 31 languages and explained to all in shipping operations.
Explanation of Shipping Terms
A set of different terms has been provided, which can be used in all operations related to shipping, and it is one of the common terms in different countries.
FOB
Through the deck of the ship or ship where the port to which it is located must be determined, which is considered this condition of the traditional maritime conditions. The obligation of the costs of risks to the one who seized the ship. The goods that have been exported must be cleared. This item applies to the maritime transport process.
Also Read: Standard Pricing and Terms for FOB Price
FAS
All expenses including the shipping process on the dock, which is what the seller identifies and equips, as the goods are cleared and the export process is concerned, which is changed according to the 2000 version. This term is used on the maritime transport process and it cannot be generalized at all.
FCA
Where the seller is concerned only with the process of delivering the goods to the first carrier, which the buyer makes for the goods to be ready for transport, and it is one of the terms that can be used on all transport operations, whether it is land, sea or air transport, as well as via trains and different modes of transport.
Also read: A Comprehensive Illustration of Shipping Containers
CFR
The costs related to the shipping process, whereby the name of the port to be reached is determined, where the seller prepares the costs for the shipping process in order for the goods to be delivered on time, and on the other hand the risks applied in this term are returned to the buyer and in case of infringement the goods are at the barrier of the ship Which term applies to the shipping service only.
CIF
All freight charges where the port to be reached is determined, so that the conditions in this matter are dependent on the process of buying and selling, which the seller must make the purchase and the insurance of the buyer is paid, as that term is used in maritime shipping operations only and not only.
Also read: Conditions for Delivery of Goods in Domestic or Local Trade
CIP
The insurance that was paid where the port that was accessed is determined by that the seller pays the expenses of the transportation process and the insurance process and this is for the case of the delivery of the goods, just as the risks that occur during the transfer are applied to the seller when it is transferred to the buyer and once the receipt has no relationship.
Also read: Payment Methods of Import and Export