Ex Work
Ticari işletmede Teslim
The transportation method it is used :: Seaway, land routes, airways, railways, transportation with multiple vehicles
Properties of the delivery method :The seller keeps the goods in its company by making it at the disposal of the buyer in a date previously determined and notifies the buyer. The buyer delivers the goods from the company and prepares the documents required for export; completes the custom procedures, and imports the goods to its own country. All expenses and risks related with the good as from the goods are delivered in the company are paid by the buyer.
Seller’s responsibilities :The seller prepares the goods suitable with the contract conditions and keeps them at the buyer’s disposal at the place again stated in the contract (factory, depot, office etc.) at the date or within the period stated. It notifies the buyer that the goods are kept at its disposal. It helps that the buyer takes the documents related with exportation. If requested by the buyer, it makes a contract with the shipment agent, provided that all costs and risks are of the buyer, and sends the shipment document it makes that prepared to the buyer to deliver the goods in the delivery place.
Responsibilities of the buyer : It pays the price of the good according to the contract conditions. It prepares the administrative and commercial papers, like license etc. which are required for export and import procedures, such that it has all costs and risks. It is responsible for making the custom procedures related with the export and import of the goods and paying the customs taxes. All risks and costs related with the good is the buyer’s responsibility as from the moment it delivers the goods in the enterprise of the seller. It reaches an agreement with the shipment company to transport the goods and pays the freight costs.
Free Carrier
Belirlenen Yerde Taşımacıya Teslim
The transportation method it is used :: Seaway, land routes, airways, railways, transportation with multiple vehicles
Properties of the delivery method :In this delivery method, the seller completes the delivery procedures by taking the goods over to the control of the first transporter at the date and place determined by completing the custom procedures. As from that moment, all costs and risks related with the goods are of the buyer. The freight costs are paid by the buyer, like all the other costs.
Seller’s responsibilities :The seller prepares the good compatible with the contract conditions and prepares the required documents requested in the country of the buyer and pays the customs costs. Upon the request by the buyer, it makes an agreement with the shipment agency provided that all costs are paid by the buyer. It delivers the goods to the control of the transporter or shipping agency at the date and place determined, all risks and costs are the obligation of the seller until the moment of delivery.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It is obliged to take the documents and permissions related with the importation and to pay the customs tax and costs. It makes an agreement with the shipment agency and pays the freight costs. It delivers the goods at the place and date determined. From this moment, all costs and risks are of the buyer.
Free Alongside
Ship Gemi yanında Teslim
The transportation method it is used :Seaways
Properties of the delivery method :: In this delivery method the seller is responsible for bringing the goods alongside to the ship. The goods are delivered by carrying them to the shipment place if the ship is on the dock or to alongside the ship by barges if the ship is anchored off-shore. As from the delivery, the risks such as the goods are lost or damaged are of the buyer. As from this moment, all costs and freight related with the goods are paid by the buyer. In this delivery method all documents related with exportation are prepared by the buyer. The custom procedures are also made by the buyer. If the buyer company can’t act as an exporter in this country, this delivery method should not be selected.
Seller’s responsibilities :The seller prepares the goods according to the contract conditions. Upon the request by the buyer, it helps the buyer to have the documents requested in the country of the buyer and similar administrative and commercial paper provided that all costs and risks are borne by the buyer. It completes the delivery procedure by bringing the goods alongside the ship determined by the buyer beforehand in the port determined and date determined. As from this moment, all costs and risks related with the goods are borne by the buyer. Upon the requests by the buyer, the seller enables that the shipment document is prepared, sends the goods to the buyer to deliver them in the delivery port, provided that the costs are paid by the buyer and immediately makes the necessary notification.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the necessary documents related with the export and import. It pays all of the customs costs. It makes an agreement with the shipment agency and notifies the seller that the when the ship will approximately arrive to the loading port. It delivers the goods kept ready for shipment order. As from this moment, all costs and risks related with the goods are borne by the buyer.
Free On Board
Gemi Bordasında Teslim
The transportation method it is used :Seaways
Properties of the delivery method :In this delivery method, the seller performs the shipping the goods to the ship provided by the buyer in the date and place determined. All kinds of damages, losses, and costs which may happen after the goods are passed the guardrail (board) of the ship are the responsibility of the buyer. The seller prepares all documents required for exportation and completes the custom procedures of the goods and delivers.
Satıcının Sorumluluğu :The seller prepares the goods compatible with the contract conditions. It makes the shipment to the ship provided by the buyer in the dock determined in the date determined. It prepares the necessary documents which the buyer will use in its country; completes the custom procedures. It notifies the buyer that the shipment is made. It prepares the chattel paper prepared and the other documents the buyer will use in its country and sends them to the buyer based on the payment type. All kinds of damages, losses, and costs which may happen until the goods are passed the guardrail (board) of the ship are the responsibility of the seller.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It completes the custom procedures by preparing the customs documents for importation. It pays the customs taxes. It makes an agreement with the shipment agency and pays the freight costs. All kinds of damages, losses, and costs which may happen after the goods are passed the guardrail of the ship in the shipment dock are the responsibility of the buyer.
Cost And Freight
Mal bedeli ve taşıma
The transportation method it is used :Seaways
Properties of the delivery method :In this delivery method, the seller assumes all the costs and risks and brings the goods to the port where it will be shipped. It makes the custom procedures and pays the freight costs and conducts the shipment. As from this moment, all costs and risks related with the goods, except freight, are of the buyer.
Seller’s responsibilities :: The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country. It completes the custom procedures. It makes an agreement with the shipment agency and pays the freight up to the arrival port. All kinds of damages and costs which may happen after the goods are passed the guardrail of the ship, except freight, are the responsibility of the buyer. The seller notifies the buyer that the shipment is conducted and the possible arrival date. It sends the transportation documents and other necessary documents to the buyer.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the customs documents for importation and completes the custom procedures. It pays the customs taxes. It unloads the goods immediately by paying the unloading costs in the arrival port and also the port fees. It has to pay all costs except freight made related with the goods during transportation.
Cost, Insurence And Freight
Mal bedeli, Sigorta ve taşıma
The transportation method it is used :Seaways
Properties of the delivery method :In this delivery method, the seller bears the insurance premium, freight and shipment costs and risks and brings the goods to the port where they will be shipped. The seller makes an agreement with the ship agency and procures. It notifies the buyer that the shipment of the goods in the sales contract are shipped in the location and date stated. The seller makes the narrowest scope sea transportation insurance compatible with the type of the goods it shipped by paying the insurance premium. After the goods are shipped to the ship, the costs, other than freight and insurance premium, are borne by the buyer.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country. It completes the custom procedures. It makes a contract with the shipping agency and pays the freight price to the arrival port. It makes the insurance of the good it ships; pays the insurance premium. It notifies the buyer approximately at which date the goods will be in the arrival port. It sends the transportation document prepared and the other necessary documents to the buyer.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the custom documents for importation and completes the custom procedures. It pays the customs taxes. It unloads the goods immediately by paying the unloading costs and port costs in the arrival port. After the delivery moment, all costs incurred, except the freight and insurance premium, are paid by the buyer.
Carriage Paid To....
Taşıma,.....'e kadar ödenmiş
The transportation method it is used :Seaway, land routes, airways, railways, transportation with multiple vehicles
Properties of the delivery method :This delivery method is especially used in the transportation methods with multiple vehicles. The seller is obliged to pay the freight costs to the arrival point. As long as it hands the goods over the control of the first transporter, all risks and costs, except freight, related with the goods are borne by the buyer.
Seller’s responsibilities : The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country. It completes the custom procedures. It makes a contract with the shipping agency and pays the fright price up to the arrival port. It gets free from all risks and costs related with the goods as long as the goods are handed over to the control of the first transporter. It notifies the buyer that the delivery is performed and the possible arrival date.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the custom documents for importation and completes the custom procedures. It pays the customs taxes. As from the delivery of the goods to the first transporter, all costs and risks, other than freight, related with the goods are borne by the buyer. The custom costs which may emerge due to transit shipment are paid by the buyer too. If it is not included in the freight costs, it pays the unloading costs and delivers the signed consignment note from the agency.
Carriage and Insurence Paid To...
Sigorta dahil taşıma,....'e ödenmiş
The transportation method it is used :Seaway, land routes, airways, railways, transportation with multiple vehicles
Properties of the delivery method :In this delivery method, the seller bears the insurance premium, freight and shipment costs and risk and brings the goods to the port they will be loaded. The seller makes an agreement with the ship agency and procures a ship. It notifies the buyer that the goods in the sales contract are shipped in the date and location stated. The seller makes the narrowest scope sea transportation insurance compatible with the type of the goods it shipped by paying the insurance premium. However if the buyer wants that insurance is made against extraordinary risks (strike, war, natural disaster etc.), it may ask the seller that the scope of the insurance is extended, provided that the buyer pays the premium. It is made by the seller for 10% more than the price of the goods by the seller.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country. It completes the custom procedures. It makes a contract with the shipping agency and pays the freight price to the arrival port. It makes the insurance of the good it ships; pays the insurance premium. It is free of all risks and costs as from the moment it hands the goods over to the control of the first transporter. As from this moment, all costs and risks, other than the freight and insurance premium, are borne by the buyer. It informs the buyer that the delivery is conducted and the possible arrival date.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the custom documents for importation and completes the custom procedures. It pays the customs taxes. It unloads the goods immediately by paying the unloading costs and port costs in the arrival port. After the delivery moment, all costs incurred, except the freight and insurance premium, are paid by the buyer.
Delivered At Frontier
Sınırda teslim
The transportation method it is used :Seaway, land routes, airways, railways, transportation with multiple vehicles.
Properties of the delivery method :This delivery method is usually used especially in the land route and railway transportation. The seller delivers the goods in the place and date stated in the border determined by completing the custom procedures, provided that all risks and costs are born by itself. As from the delivery, all risks and costs are borne by the buyer. The custom taxes related with importation are paid by the buyer.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country, it completes the custom procedures. It procures the transporting vehicle and pays the fright for that the goods are transported to the border point determined. As long as it maintains the goods ready for the control of the buyer in the location in the border and date determined, all the risks and costs related with the goods are borne by the buyer.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the custom documents for importation and completes the custom procedures. It pays the customs taxes. It delivers the goods immediately at the moment when the goods are kept ready for its control in the border point determined. As long as it maintains the goods ready for the control of the buyer in the location in the border and date determined, all the risks and costs related with the goods are borne by the buyer.
Delivered Ex Ship
Gemide teslim
The transportation method it is used :Seaways
Properties of the delivery method :In this delivery method, the seller delivers the goods in the ship, in the arrival port. All risks and costs, including the freight price, up to the arrival port are paid by the seller. As long as the goods are kept ready for the disposal of the buyer in the arrival port, all risks and costs are borne by the buyer.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which the buyer will use in its country. It completes the custom procedures. It makes a contract with the shipping agency and pays the freight price up to the arrival port. The delivery of the good is become realized as soon as the goods are kept ready for the disposal of the buyer in the arrival port. All risks and costs until the delivery are borne by the seller. The seller is obliged to inform the possible arrival date.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It immediately unloads the goods by paying the unloading costs and port fees in the arrival port. It prepares the custom documents for importation and completes the custom procedures. It conducts the actual import by paying the custom taxes.
Delivered Ex Quay
Rıhtımda teslim
The transportation method it is used :Seaways
Properties of the delivery method :This delivery method is based on the same principles with DES delivery method but unlike it, the delivery of the good, it delivers the goods after completing the unloading in the port and paying the import custom taxes. Because of this, this delivery method is not applied the seller doesn’t have the importer certificate compatible with the foreign exchange regime in force in the country of the buyer.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which it will use in its country and in the buyer’s country. It completes the custom procedures of exportation and importation. It procures the carrier vehicle and pays the freight cost. It informs the buyer that at which date the goods will be in the arrival port. It delivers the goods by keeping them ready for the disposal of the buyer by completing the custom procedures too in the arrival port in the date determined.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It provides the necessary help to the seller for preparing the documents related with importation. All risks and costs are borne by the buyer as soon as it is kept ready for the disposal by the seller.
Delivered Duty Unpaid
Vergileri Ödenmemiş Teslim
The transportation method it is used :Seaway, land routes, airways, railways, transportation with multiple vehicles
Properties of the delivery method :DDU is used for transportation with multiple vehicles. Even though it is similar to the DEQ method used in the sea transportation, in this delivery method, the seller delivers the goods in the location determined in the country of the buyer in the date determined without paying the taxes. All costs and risks are borne by the seller until delivery.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares all documents related with exportation and pays the custom costs. It makes an agreement with the shipping agency and pays the freight costs. It delivers the goods by keeping them ready for the disposal of the buyer in the arrival port in the date determined beforehand. All risks and costs are borne by the buyer until delivery.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions. It prepares the necessary documents related with the importation of the goods and pays the customs taxes. It delivers the goods in the arrival point in the date determined beforehand.
Delivered Duty Paid
Vergileri Ödenmiş Teslim
The transportation method it is used :Seaway, land routes, airways, railways, transportation with multiple vehicles.
Properties of the delivery method :This delivery method is based on the same principles with the DDU delivery method however the seller has to pay the custom duties too in the DDP delivery method. It delivers the goods the same as a local seller in the country of the buyer.
Seller’s responsibilities :The seller prepares the goods compatible with the contract conditions. It prepares the necessary documents which it will use in its country and in the buyer’s country. It completes the custom procedures of exportation and importation. It procures the carrier vehicle and pays the freight costs. All costs and risks related with the good until the delivery are borne by the seller. It conducts the delivery in the time and place determined in the country of the buyer and by paying the custom duties too.
Responsibilities of the buyer :It pays the cost of the goods according to the contract conditions and delivers the goods.
As an expert in international trade and logistics, I can confidently provide insights into the concepts discussed in the article about INCO terms, specifically EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU, and DDP. These terms, established by the International Chamber of Commerce (ICC), define the responsibilities and liabilities of the buyer and seller in international transactions.
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EXW (Ex Works):
- The seller's responsibility is to prepare the goods and make them available at a specified location.
- The buyer bears all costs and risks from the moment the goods are at the seller's location.
- Buyer pays for transportation, export/import procedures, and assumes risks and costs.
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FCA (Free Carrier):
- Seller delivers the goods to the carrier or another person nominated by the buyer at a specified location.
- Risk transfers to the buyer once the goods are handed over to the carrier.
- Buyer is responsible for transportation, import procedures, and bears associated risks and costs.
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FAS (Free Alongside Ship):
- Seller is responsible for delivering the goods alongside the ship at a specified port.
- Risk transfers to the buyer once the goods are alongside the ship.
- Buyer manages export documents, customs procedures, and bears all risks and costs from that point.
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FOB (Free On Board):
- Seller is responsible for shipping the goods onto the vessel at a specified port.
- Risk transfers to the buyer once the goods pass the ship's guardrail.
- Buyer handles import procedures, customs, and bears risks and costs from that moment.
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CFR (Cost and Freight):
- Seller covers costs and risks until the goods are loaded onto the vessel.
- Buyer manages import customs, pays duties, and bears risks and costs after loading.
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CIF (Cost, Insurance, and Freight):
- Seller is responsible for costs, risks, and freight, including insurance.
- Buyer handles import customs, pays duties, and bears risks and costs after unloading.
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CPT (Carriage Paid To):
- Seller pays for transportation to the named destination.
- Risk transfers to the buyer upon delivery to the carrier.
- Buyer manages import customs, pays duties, and bears risks and costs from that point.
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CIP (Carriage and Insurance Paid To):
- Similar to CPT, but the seller also provides insurance coverage.
- Buyer manages import customs, pays duties, and bears risks and costs after unloading.
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DAF (Delivered At Frontier):
- Seller delivers goods at a specified border location.
- Buyer assumes risks and costs from the moment goods are ready for inspection.
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DES (Delivered Ex Ship):
- Seller delivers goods on the ship at the destination port.
- Buyer bears risks and costs from the moment goods are ready for disposal.
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DEQ (Delivered Ex Quay):
- Similar to DES, but delivery occurs after unloading, and import customs are paid.
- Seller provides goods after customs clearance at the destination port.
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DDU (Delivered Duty Unpaid):
- Seller delivers goods to a named destination without paying duties.
- Buyer bears risks and costs from the moment goods are ready for inspection.
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DDP (Delivered Duty Paid):
- Similar to DDU, but the seller pays import duties as well.
- Seller assumes risks and costs until the goods are delivered to the buyer's location.
Understanding these INCO terms is crucial for international trade participants to establish clear responsibilities, avoid misunderstandings, and facilitate smooth transactions.
