The term Incoterms is actively used in the field of logistics. Like many fields, there are words and terms in the field of logistics that is specific to this field.
When we say incoterms, we mean many expressions that are used at all stages of the supplier-customer relationship. Customers who know these phrases can more easily communicate and work with suppliers.
International Trade Terms is shortly called incoterms. Incoterm helps to simplify international և world trade processes.
These terms are described and defined the transaction between functions and responsibilities of both parties. Usually, one of the parties is an exporter and the other is an importer.
Using incoterms, many logistics processes can be described from the departure of the goods to be transported to the appropriate place of the port.
Incoterms are used to describe the basic stages of logistics. These are: cargo delivery stage, transportation stage, document processing stage և insurance stage.
We have singled out several examples of incoterms.
EXW- EX Works- The term "factory" is used when the seller has completed his duties to by provide the product to the buyer. The product can be provided in his own enterprise or in another place, for example, in a warehouse. The seller is no longer responsible for loading the goods on the vehicle, for its export or customs clearance.
FCA - FREE CARRIER- The phrase "before the consignor" means that the seller delivers the cleared goods to the consignee, to the mentioned. If the product will be provided to the seller’s area, he is responsible for loading the goods. If it provides elsewhere, the seller is not responsible for the delivery of the goods.
CFR - COST AND FREIGHT- The term "cost and shipping" describes the process when the seller makes the delivery to the port. The seller has the responsibility to transport the goods to the port. And many other risks on the ship, such as loss of cargo, damage of cargo or other costs are the buyer's responsibility.
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