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Documents needed in international trade (Import and export)
| · Bill of Lading · Sea Waybill · Shipping Note | · Dangerous Goods Note · Air Waybill · Certificate of Insurance |
Incoterms*
| Group 1 – The E Term(Departure) | |
| EXW | This price is the Ex-Works cost of the goods. The buyer arranges collection from the supplier and pays for freight carriage and insurance. |
| Group 2 - The F terms (Free, main carriage not paid by the seller) | |
| FCA | The Free Carrier price includes all costs to a named point of loading onto a container. The buyer pays for onward shipment and insurance. |
| FAS | This price includes all costs to a named port of shipment Free Alongside Ship. The buyer pays for loading, onward shipment and insurance. |
| FOB | This price includes all costs of the goods Free On Board a ship (or aircraft) whose destination is stated in the contract. The buyer pays for onward shipment and insurance. |
| Group 3 – The C terms (Main carriage paid by the seller) | |
| CFR | This price includes Cost and Freight, but not insurance, to a named port of destination in the buyer’s country. |
| CIF | This price covers Cost, Insurance and Freight to a named port of destination in the buyer’s country. |
| CPT | The cost and transportation of the goods, Carriage Paid to a named destination in the buyer’s country. |
| CIP | The cost and transportation of the goods, Carriage and Insurance Paid, to a named destination in the buyer’s country. |
| CIP | Carriage and Insurance Paid To a named place of destination. |
| Group 4 – The D terms (Delivered / Arrival) | |
| DAF | The cost, insurance and transportation of the goods Delivered At Frontier. |
| DES | The cost, insurance and transportation of the goods Delivered Ex-Shipto the named port of destination. |
| DEQ | The cost, insurance and transportation of the goods, unloaded from the ship and Delivered Ex-Quay to the named port of destination. |
| DDU | The cost, insurance and transportation of the goods Delivered Duty Unpaid to the named port of destination. |
| DDP | The cost, insurance and transportation of the goods Delivered Duty Paid to the named port of destination. |
Task 5. Match each group of Incoterms to the four paragraphs. Expand on them.
| Group 1 - The E Term | Paragraph _________ |
| Group 2 - The F terms | Paragraph _________ |
| Group 3 - The C terms | Paragraph _________ |
| Group 4 - The D terms | Paragraph _________ |
A
The seller arranges and pays for the pre-carriage in the country of export. The goods are delivered to a carrier appointed by the buyer. The buyer arranges insurance against damage to the goods in transit.
B
In this group the seller arranges and pays for the main contract of carriage. In some of the terms the seller arranges insurance against damage to the goods in transit.
C
These terms maximize the seller’s cost and risk, as he has to make the goods available at the agreed destination. The seller bears the costs and risks of bringing the goods to the country of destination, and arranges and pays for insurance against damage to the goods in transit.
D
Under this shipping term the seller makes the goods available for collection by the buyer at the seller’s own premises. This term involves the least risk for, and requires the least effort by, the seller, but should not be used where the buyer cannot carry out export formalities.
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