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.
USING TEU IS VERY CONVENIENT!
It’s interesting that 20 or 40 foot container became the standard only in 1964! Modern transportation cannot be imagined without containers for obvious reasons:
1.Container protects the cargo from environmental influences and ensures preservation for any mode of transportation;
2.The same container can be moved from one mode of transport to another (from ship to rail or truck) without unloading and reloading the contents of the container;
3.Container must be sealed, so only final consignee can open it. Sealed contained guarantees the safety of the cargo and helps to avoid a lot of claims against the carrier.
Hence, container transportation is very convenient, fast, reliable and affordable.
