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Inco Terms

Cost and freight (c. and f.): price includes f.o.b. plus sea or airfreight charges.

Cost, freight and commission (c.f. and c.): cost, freight and commission.

Cost, insurance, freight (c.i.f.): A c.i.f. contract is a contract for the sale of goods where the seller's duties are:

(1) to ship at the port of shipment, within the time named in the contract, the goods of the contract description;

(2) to procure on shipment a contract of Affreightment under which the goods will be delivered at the destination contemplated by the contract;

(3) to effect, upon the terms current in the trade, an insurance of the goods which will be available for the benefit of the buyer;

(4) to make out an invoice of the goods;

(5) to tender to the buyer the bill of lading, the invoice and the policy of insurance.

Cost, insurance, freight and commission (c.i.f.c.): cost, insurance freight and commission.

Ex works: price at which the supplier will supply ex his works. It does not include any cartage or delivery.

Free alongside ship (f.a.s.): includes all charges (including wharfage and porterage) up to but not including hoisting on board.

Free into store (f.i.s.): includes the landed price plus all transport costs into the customer's warehouse.

Free on board (f.o.b.): a price quoted for goods including the costs of placing them on board ship.

Where the goods have been quoted f.o.b., it is the seller's duty to deliver the goods to the ship at the port of shipment.

Delivery is completed once the goods have been put aboard ship. However, it is the duty of the seller to notify the buyer of the shipment to enable him to insure,

otherwise the goods are at the seller's risk.

Free on wharf (f.o.w.): goods delivered to the wharf but not payment of wharfage.

Ship's liability: starts when the cargo is on the inboard of ship's rails. It terminates as soon as cargo is over ship's rail on discharge.

If cargo is damaged in transit from wharf to the ship's rail or vice versa, the ship will normally refuse liability.

Group E Departure EXW Ex-Works Group F Carriage Unpaid FCA Free Carrier FAS Free Alongside Ship FOB Free On Board

Group C Main Carriage CFR Cost and Freight CIF Cost, Insurance and Freight

CPT: Carriage Paid To CIP Carriage and Insurance Paid To Group D Arrival DAF Delivered At Frontier DES Delivered Ex-Ship

DEQ: Delivered Ex-Quay DDU Delivered Duty Unpaid DDP Delivered Duty Paid

Glossary of Export Terms The following is a list of commonly used export terms in International trade.

Ad valorem: according to the value. An ad valorem stamp on deeds or documents is one fixed in proportion to the amount of rent or other element of value expressed in the deed.

Affreightment: contract to carry goods by ship. Charter-parties and bills of lading are contracts of Affreightment.

Bill of lading: document which is a receipt for cargo received on board ship and is evidence of the contract between shipper and ship-owner. It is also evidence of title to the goods described on it.

Bonded goods: imported goods deposited in a government warehouse until duty is paid.

Broker: agent employed (at a customary or an agreed rate of commission or remuneration) to buy or sell goods, merchandise or marketable securities, or to negotiate insurances, freight rates or other matters, for a principal; the sales or transactions being negotiated not in his own name but in that of the principal.

Bill of exchange: order in writing from one person or firm to another requiring them to pay a certain sum to a person named.

Common carrier: one who carries any type of goods, other than a carrier of special goods.

Conference: agreement by shipping companies of different ownership and nationality, that operate services between the same range of ports,

to regulate the freight rates they will charge for each type of goods carried. In some cases the agreement also allocates a specified number of sailings to each company.