THE MOST POPULAR TERMS OF DELIVERY — EXW AND FOB
EXW — Ex Works (named place of delivery) means that a seller’s only responsibility is to make the goods available at his premises (works or factory). The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination.
FOB — Free on Board (named port of shipment) means that the goods are placed on board the ship by the seller at a port of shipment named in the sales contract. The seller must clear the goods for export. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship’s rail.
HOW TO CLASSIFY YOUR GOODS FOR EXPORT?
At first glance it seems simple matter. However, it might be difficult. The Commodity Code (HS CODE) is organized into 21 sections and 97 chapters, accompanied with general rules of interpretation and explanatory notes. In order to classify goods it’s necessary to know full description of the goods (size, specification, material composition and so on). Classifying your goods correctly will help to ensure that you pay the right duty for import-export and VAT and know whether import or export certification is required. Incorrect classification can lead to your goods being delayed or/and possible financial penalties.
WHAT DOES B/L STAND FOR?
A bill of lading (sometimes referred to as a BOL or B/L) is a document issued by a carrier to a shipper. B/L is used for carriage at sea.
It serves a number of purposes:
- It evidences the receipt of goods for shipment and indicates the route of the cargo;
- It is evidence that a valid contract of carriage exists and it may incorporate the full terms of the contract between the consignor and the carrier;
- It is also a type of security which states the right of property for the goods described in bl.
