13 Standard Terms of Sale

We should introduce ourselves with standard terms of sale so, here are all terms of sale given:

Terms of sale

1. F.A.SFree Alongside Ship-cost, carriage to docks, and dock charges.
2. F.O.BFree on board-FAS plus charges for loading the goods on board the ship
3. C & FCost and Freight- FOB Plus Freight charges up to the port of the importer.
4. C.I.FCost, Insurance, and Freight-C&F plus marine insurance charges. This is a common method of quotation and the price includes:
  1. Manufacturer’s price,
  2. Carriage to the Port,
  3. Port or Dock charges,
  4. Loading charges,
  5. Export Duty,
  6. Freight, and
  7. Marine Insurance.
5. Franco, Rendu or FreeC.I.F plus import duty, port charges the importer’s port, and conveyance charges from the port to the buyer’s place.
6. Ex-ShipAll charges after the ship reach the shore are to be paid by the importer. (It is almost similar to C.I.F price.)
7. Bill of EntryB/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 LadingThe 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 PolicyMarine insurance is compulsory in foreign trade. The origin document relating to marine insurance is also sent to the importer.
10. InvoiceThe document giving full details of goods being shipped is prepared by the exporter and sent to the importer.
11. Bill of ExchangeGenerally, the exporter secures payment for his shipments through a bill of exchange drawn on the importer and sent through his (exporter’s) bank.
12. Shipping AdviceAfter 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 CreditThe importer has generally to obtain a letter of credit from his banker and send it to the Indent house or the exporter.
Terms of Sale
Terms of Sale

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