What is the difference between des and cif

Parties to a contract must expressly indicate the governing law of their terms as a result. Typically, the seller remains responsible for products until delivery. It bears the costs and risks that come with bringing goods to port. The seller has total responsibility for shipping, and it must pay the shipping company and purchase insurance for the goods.

The seller's obligation ends when it delivers the merchandise to the agreed-upon port, aboard the ship, not yet cleared for import. Buyers are responsible for all costs to receive and unload the goods, and to clear them through customs. Delivered Ex Ship DES stipulates that the seller has a legal obligation to deliver the goods to port and to ensure the goods' arrival there, but not to a wharf. Delivered Ex Quay specifies that the seller must ship the goods to the wharf at the destination port.

Delivered Ex Quay can note a duty as either paid or unpaid. The seller is obligated to cover costs, like duties, if it pays, and is responsible for providing the merchandise. If unpaid, those obligations and responsibilities shift to the buyer. The seller must make the goods available for pickup at its place of business in Ex Works.

All costs and risks of transportation are taken on by the buyer from there. Seller X ships contracted goods to a pier and port in Kennebunkport, Maine.

Midway there, the ship encounters a storm and sinks. Seller X absorbs the loss because the shipment has not yet arrived in port. Alternatively, Seller X's shipment makes it safely to Kennebunkport. The storm hits while the ship is docked after the point when Buyer Y has contractually taken possession of the products. The ship sinks in port. Buyer Y absorbs the loss because it has accepted delivery, even though the goods have not yet left the ship.

Business Essentials. Corporate Finance. Corporate Insurance. Your Privacy Rights. How to cover the risk of Cargo loss or damage. How to customs clear Cargo arrived in a port where in import license obtained for another port. How to divert cargo from one port to another? How to file bill of entry Manually. What is manual filing of Import Documents? How to file Bill of Entry on line?

What is called Noting in bill of entry. How to get exemption of Sales Tax under exports. What happens if overseas buyer not paid export bills discounted. What happens if proper tracking of goods not effected in export import business? What happens if your buyer rejects cargo? Nevertheless, in case the parties still want the buyer to be responsible for clearing the goods export , they may add explicit wording to this effect in the sale contract.

Any other shipping expense and risk, from that point onward, has to be borne by the buyer. Under the Free on Board Incoterm, the risk of the goods is transferred from the seller to the buyer as they are loaded on the vessel at the port of departure.

Under the FOB Incoterm, the buyer is liable, and not seller, in case the goods are lost, damaged or destroyed during the transportation. This Incoterm is very popular with Chinese suppliers of pipes and pipe fittings. The table shows the sharing of responsibilities and costs between buyers and supplier according to the chosen incoterm source: Incoterms Carriage of Goods. Carriage to be arranged by the buyer. Risk transfer from the seller to the buyer when the goods are at the disposal of the buyer.

Cost transfer from the seller to the buyer when the goods are at the disposal of the buyer. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place. Cost transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place. Carriage to be arranged by the seller.

Risk transfer from the seller to the buyer when the goods have been delivered to the carrier. Risk transfer from the seller to the buyer when the goods are delivered and unloaded at terminal.

Cost transfer from the seller to the buyer when the goods are delivered and unloaded at the terminal. Risk transfer from the seller to the buyer when the goods are delivered to named place ready for unloading. Cost transfer from the seller to the buyer when the goods are delivered at named place ready for unloading.

Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer. Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer.

Risk transfer from the seller to the buyer when the goods have been placed alongside the ship. Cost transfer from the seller to the buyer when the goods have been placed alongside the ship.

Carriage and insurance to be arranged by the seller. Incoterms illustrations: Source. The International Chamber of Commerce is an important institution to support trading operations, with operations all over the world. It has thousands of member companies in over countries and a broad range of business interests. The Chamber runs also a large number of committees and experts, ranging in all industries, and works in close cooperation with other important political and business associations as the United Nations, the World Trade Organization WTO and other governmental entities focused on financial and economic matters.

The ICC scope is to sustain international trade among the member countries and companies and promote an open market for goods, services, and capital. ICC is responsible for:. While ICC is not a normative body, thousands of business transactions happen on a daily basis under the policies set by this organization.

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Learn how your comment data is processed. We have more than 2. We have shipped thousands of tons of metal products around the world since Contact Us. Stock Delivery. EU Origin. Factory Prices. Top Quality. Search for: Search Button. What are Incoterms? Author: Projectmaterials Posted: September 18, 3 Comments. Share on whatsapp. Share on telegram. Share on linkedin. Share on facebook. Share on twitter.

Share on print. Share on email. Table of Contents. This Incoterm can be used regardless of the mode of transport including multimodal. Provision of goods The seller must deliver the goods, provide a commercial invoice or an equivalent electronic document, provide evidence of conformity or proof of delivery 1. Payment The buyer must pay the price of goods as agreed in the contract of sale 2. Licenses, authorizations, and formalities The seller must provide export licenses or local authorizations for exporting goods 2.