We should introduce our self with standard terms of sale so, here are all terms of sale given:
Terms of sale
|
Terms |
Meaning/Implication |
| 1. F.A.S | Free Alongside Ship-cost, carriage to docks and dock charges. |
| 2. F.O.B | Free on board-FAS plus charges for loading the goods on board the ship |
| 3. C & F | Cost and Freight- FOB Plus Freight charges up to the port of the importer. |
| 4. C.I.F | Cost, Insurance and Freight-C&F plus marine insurance charges. This is a common method of quotation and the price includes:
|
| 5. Franco, Rendu or Free | C.I.F plus import duty, port charges the importer’s port and conveyance charges form the port to the buyer’s place. |
| 6. Ex-Ship | All charges after the ship reaches the shore are to be paid by the importer. (It is almost similar to C.I.F price.) |
| 7. Bill of Entry | B/E enables the customs authorities to levy appropriate import duties. Different forms of B/E are used for free goods, dutiable goods and goods to be stored in Bonded Warehouse. |
| 8. Bill of Lading | The B/L is a contract of carriage and includes the terms and conditions on which the shipping company had accepted the goods for transportation. |
| 9. Insurance Policy | Marine insurance is compulsory in foreign trade. The origin document relating to marine insurance is also sent to the importer. |
| 10. Invoice | The document giving full details of goods being shipped is prepared by the exporter and sent to the importer. |
| 11. Bill of Exchange | Generally the exporter secures payment for his shipments thought a bill of Exchange drawn on the importer and sent through his (exporter’s) bank. |
| 12. Shipping Advice | After the goods have been shipped, the exporter sends a letter to the importer advising him of the dispatch of the goods, sailing to the ship and forwarding of the documents through the banker. This letter is called shipping advice. |
| 13. Letter of Credit | The importer has generally to obtain a letter of credit from his banker and send it to the Indent house or the exporter. |
Related Content of Import-Export:
- What is the Definition of Import?
- General Procedure of Import Trade
- Documents used in Import Trade
- What is the Definition of Export?
- Stages of Export Involvement
- Procedures for Export Trade
- Documents used in Export Trade