Incoterms

Global trade has developed sharply with technology era in last 25 years. Therefore New terms has emerged and started to use. We called them as incoterms. Actually incoterms are more complicated than we told. We can’t define all incoterms in details but we had summarized for you.

There are 15 sort of incoterms and all of them has some private rules. Receiver and sender has some responsibilities in all kinds of incoterms. It could change who has more responsibility incoterm to incoterm.

We will analyze 4 kinds of incoterms and we will define specialities of incoterms, responsibilities of receiver and sender.

EXW (Ex Works)

In that incoterm, Seller holds products wanted by Buyer in his storage. Buyer should supply documents which are wanted by local government. When these documents are ready, Buyer could export products. In this agreement after products were given to buyer or his distributor, all resposibility is on the buyer.

FCA (Free Carrier)

Seller and Buyer sign an agreement about the location and date. Until that date Seller should make process of selling finished and supply to necessary documents. In the determined date and location the process of selling is realized by companies. After this date all responsibility is on the buyer.

FAS (Free Alongside Ship)

This method is used frequently by companies all around the world. Because ships are the cheapest way of carrying something to another location owing to their capacities. By the rules, Seller should bring products to port. After that part of process, all responsibility is on the Receiver. Also buyer should compensate to expenses which are emerged due to process.

FOB (Free on Board)

This method similar to FAS but in this ship and documents should be arranged by seller and seller should emplace products to in the ship. After that all responsibility is on the buyer