Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
A freight forwarder's business relies on goods being sold - this must have taken place before the freight forwarder gets involved. Hopefully, the seller and buyer will have entered into a contract that makes it clear who's responsible for the cost of moving the goods and any other charges that arise from this process.
A set of international sales terms have been devised by the the International Chamber of Commerce (ICC) to remove the uncertainties of different interpretations of terms in different countries. These terms, which are used to divide transaction costs and responsibilities between buyer and seller, are known as Incoterms.
Whilst these Incoterms help to resolve many disputed interpretations, it is usually left to the freight forwarder to interpret them. For this reason, every forwarder must have a clear understanding of the application and interpretation of Incoterms to be able to give advice to customers.
It's important to understand that Incoterms only cover the contract of sale between the seller and the buyer - setting out responsibilities and obligations of both parties over the delivery of the goods. Incoterms do not apply to the contract of carriage - a common assumption which can cause confusion.
Another misconception is that Incoterms are completely definitive and cover all the duties of the parties. This is not the case - very often the seller and the buyer have to agree who will pay what of any additional costs incurred.
There are 13 approved Incoterms. These range from 'Ex Works' - where the buyer is responsible for the costs in the entire transport chain - to 'Delivered Duty Paid' - where the seller is responsible for all these costs.
Despite the use of Incoterms, there are still differing interpretations or practices that exist in some parts of the world. Some Incoterms have been designed for particular modes of transport, eg 'Cost, Insurance and Freight' is intended for use solely when goods are transported by sea.
A copy of the latest version of 'Incoterms 2000' is available from the ICC and is recommended reading for all freight forwarders.
