ICC International Chamber Of Commerce is an institution specifying the risks of the international trade for seller, buyer and transporter where Turkey is also a party. International trade is conducted according to the rules developed by this Chamber. This Chamber was gathered the possible delivery terms of the goods in the trade made between seller and buyer.
These delivery terms are referred to as INCOTERMS. The INCOTERMS are revised by this Chamber with INCOTERMS 2000 (2000 International Commercial Terms) name when entering new thousand years. Since Turkey is a party of this convention, the rulings of the courts will be based on these INCOTERMS in conflicts you may experience with your transporter or with your foreign buyer or seller.
In this text, in it intended to explain the subject by comparing the obligations of buyer and seller in INCOTERMS under main headings.
EXWORKS (EXW)
It is the delivery at the place of production or sales. It is the less risky and obligating delivery mode for exporter. Pre shipment, transportation and final transportation from the warehouse of exporter to the warehouse of the importer are carried by the importer.
FREE CARRIER (FCA)
It means delivery to transporter in specified location. This delivery term is designed for the requirements of shipment with container and transshipment where more than one transport means are used. There may be three handing over place for goods:.
1) The warehouse of producer,
2) Warehouse of importer
3) not any of the exporter or importer but may be warehouse of any third party.
FREE ALONGSIDE SHIP (FAS)
It means delivery at the port of shipment. The costs up to the shipment port belong to the exporter. It is used for maritime transport. All expenses after delivery at shipment port belong to the importer.
FREE ON BOARD (FOB)
It means delivery on board of a vessel. It is only used for maritime shipment. It is delivery term requiring the material to be handed over on the board of the specified vessel in the specified port in the contract by the exporter. The loss, damage and all other risks related to the goods passes from exporter to importer when the goods are on board.
COST AND FREIGHT (CFR)
It means the delivery to the vessel at the shipment port. It is used for maritime transport. It is the delivery term prescribing the delivery of goods by exporter to the importer in vessel in the departure board by paying all expenses and freight.
COST INSURANCE FREIGHT (CIF)
It is the delivery of goods to the port of destination by covering the insurance and freight by the exporter. Furthermore, there is an obligation of exporter to have the cargo insured at the currency set forth in the contract and with coverage 10% over the CIF value of the goods with an endorsable insurance policy.
CARRIAGE PAID TO (CPT)
Freight is paid by the exporter up to the specified point of destination by exporter. It is used in combined transport. The risk of loss or damage of the cargo passes from exporter to importer at the moment of delivery of cargo to importer.
DELIVERED AT FRONTIER (DAF)
It is delivery of goods at specified point at specified point at the frontier of the destination country before the respective place of customs to importer. It is used in combined transportation.
DELIVERED EX SHIP (DES)
It is delivery term where the goods are delivered in the board of vessel in specified destination port. All expenses and risks associated to the shipment of goods up to that board are covered by exporter.
DELIVERED EX QUAY (DEQ)
It is the delivery term where delivery of goods is made to the importer in the quay discharged from the vessel at the destination port. The customs clearance and taxes are at the expense of the exporter. Exporter makes the tax procedures but they are paid by importer.
DELIVERED DUTY UNPAID (DDU)
It is delivery of goods in the customs of importer without payment of custom clearance and taxes.
DELIVERED DUTY PAID (DDP)
It is delivery of goods to the importer by clearing from customs and paying the duties and taxes in the importer country..
SHORT TERMS:
ADVANCE FREIGHT (AF) : Freight paid in advance
BONDED GOODS (B/G) : Transit cargo for which customs duties are unpaid.
CASH AGAINST DOCUMENTS (CAD) : Payment against shipment documents.
CASE ON DELIVERY (COD) : Payment at delivery time.
DOCUMENTS AGAINST ACCEP (D/A) : Documents delivered against draft signed by importer
DOCUMENTS AGAINST PAYMENT (D/P) : Documents delivered only against payment
FREE INTO BUNKERS (FIB) : Delivery to warehouse
FREE OF CHARGE (FOC) : Free of any costs and expenses.
FREİGHT FORWARD (FRFWRD) : Freight paid in a specific term.
FREİGHT COLLECT (FRTCOLL) : Freight will be collected
FREİGHT PREPAİD (FRTPP) : Freight paid in advance.
LETTER OF CREDİT (L/C) : Bank letter guaranteeing the payment under special conditions.
LİNER OUT (LO) : Discharge in the expense of seller.
MATE’S RECEİPT (M/R) : Cargo delivery receipt
MARİNE INSURANCE POLİCY (MIP) : Insurance policy for marine cargo .
