:: Frequently asked Questions by our customers :: EXW (Ex Works) The seller makes the goods available to the buyer at the seller's own premises. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. FOB (Free On Board) The seller fulfills his obligation to deliver when the goods have passed over the ship's rail and cleared for exports, at the named port of shipment. Buyer bears all costs and risks of goods from that moment. FCA (Free Carrier) The seller fulfills his obligation to deliver when he has handed over the goods and cleared for export to the carrier named by the buyer at the named place. FCA is used for any mode of transportation. CFR (Cost and Freight) The seller pays for the carriage of goods to the named destination and clears the goods for export. CFR is only used for sea and inland waterway transportation. The buyer undertakes the risk of loss or damage once the goods are delivered to a carrier. CIF (Cost, Insurance and Freight) Apart from the same obligations in CFR, the seller must procure cargo marine insurance against the buyer's risks of goods during the carriage. The seller contracts for insurance and pays the insurance premium. CPT (Carriage Paid To) The seller pays for the carriage of goods to the named destination and clears the goods for export. CPT is used for any mode of transportation. The buyer undertakes the risk of loss or damage once the goods are delivered to the first (or only) carrier. DDP (Delivered Duty Paid) The seller fulfills his obligation to deliver when the goods are made available at the named place in the country of importation. The seller bears all risks and costs including import duties, taxes, delivery charges and clears for importation. DDP is used for any mode of transportation.
:: KINDS OF B/Ls :: House bill of lading It is the document issued by the freight forwarder to the shipper giving the detail of the consignment to be carried to the destination country. Master bill of lading It is the document issued by the original carrier or the liner to the freight forwarders giving the detail of the cargos to be carried by the liner. Through bill of lading A document that establishes the terms between a shipper and transportation company covering both the domestic and international transport of export goods between specified points for a specified charge. Express bill of lading It is a document required for the express delivery of the consignment .The original bill of lading is not required in this case which is surrendered at the load port. Switch bill of lading Often called “the trader’s second set” and intended to replace the first set of bills of lading issued. Usually used where a seller/trader wishes to keep the name of his supplier, named as shipper, secret from the ultimate buyer of goods. Due care and consideration must be exercised when issuing such bills of lading because of inherent exposure to fraud/conversion of factual data. BAF It stands for “bunker adjustment factor”. It is used for accommodating fluctuating bunker prices. CAF and CC Fees Currency Adjustment Factor (CAF) This factor takes into account the fluctuation of the US Dollar against the Indian Rupee. Charged by the forwarder for accounting fluctuating exchange rate at the time of the remittance overseas and charges collect fees (CC fees) for collection of freight at the destination port. ODC The term stands for “over dimensional cargo”. A cargo is generally measured by its length, width and height. In case of containerized cargo, the maximum dimension against length, width and height is fixed. If any of these dimensions exceeds the fixed parameters then it is considered to be an ODC
:: Insurance :: What is marine
insurance? Why is marine
insurance required? Who requires this
insurance? Fundamental principles
of insurance – Risks covered under
marine insurance policy – Risks are divided into two groups *ALL RISKS Note SRCC/Act of terrorism
risks can be covered on payment of additional Premium . Standard Exclusions
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