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business transaction (INCOTERMS (2 categories (waterway transport (FAS…
business transaction
INCOTERMS
international commercial terms
make international trade easier
define responsibilities
avoid misunderstanding
2 categories
any mode of transport
EXW (ex works) + named place
S→cover just the price of the goods
B→bears all costs&risks from S's place to the desired destination
DDP (delivered duty paid) + named place destination
S→bears all costs&risks in bringing the goods to the B destination +costume duty, taxes
B→nothing
waterway transport
FAS (free alongside ship) +named port of shipment
S→is responsible for the goods until they've been placed alongside the vessel at the port of shipment
B→bears all costs&risks from the vessel to the desired destination +clears the goods
FOB (free on board) +named port of shipment
S→is responsible for the goods until they've passed the ship's rail at the port of shipment +clears the goods
B→bears all costs&risks from the chip's rail to the desired destination
CFR (cost and freight) +named port of destination
S→pays the cost and freight required to bring the goods to the named port of destination +clears the goods
B→bears all costs&risks when the goods pass over the ship's rail at the port of shipment
CIF (cost insurance and freight) +named port of destination
S→same as CFR +required to provide insurance against the B's risks of loss o damage
B→same as CFR
CONTRACT of SALE
agreement by which the ownership of goods is transferred from a seller to a buyer
sales terms
it must be agreed by both parties
about:
quality
quantity
price
packing and transport
delivery
payment