What is EXW - ExWorks?
EXW refers to ExWorks. ExWorks represents that seller has a minimum responsibility in the trade since he has to only place the products at the buyer’s disposal. All the other tasks of import-export clearance, carriage and insurance are to be dealt by the buyer himself.
What is FCA - Free Carrier?
FCA refers to free carrier. In FCA, the seller delivers the product at the buyer’s named place; while the buyer pays for the carriage to the named place.
What is FAS - Free Alongside Ship?
FAS refers to Free Alongside Ship. this term is used for ocean transport only. The seller is responsible for the clearance of all the goods for export. The buyer, however, has to bear all the costs as well as the risks of damage from that moment onwards.
What is FOB - Free On Board?
FOB refers to free on board. The buyer is obliged to bear all the shipment costs and the risks to the goods after the seller delivers , that is, after the goods pass the buyer’s named port of shipment.
What is CNF - Cost and Freight?
CNF refers to cost and freight. This term makes the seller obliged to pay all the necessary costs required to bring the goods to the named destination. The seller must clear the goods for export; however, the risks of loss or damage (and any other costs that may occur during delivery of the product) are transferred from seller to buyer. This term is strictly used for ocean transport.
What is CIF - Cost, Insurance, Freight?
CIF means cost, insurance, freight. The idea behind this concept is the same as that of CFR; however, in this process of delivery, the seller also holds a “Procure Marine Insurance” against the buyer’s risk of loss or damage during the carriage. This term is strictly used for ocean transport.
What is CIP - Carriage and Insurance Paid?
It is same as that of CPT provided the seller also holds a “Procure Marine Insurance” against the buyer’s risk of loss or damage during the carriage.
What is CPT - Carriage Paid To?
In this method that seller can deliver to any carrier of his choice but he has to pay additional costs required to ship the product to buyer’s named destination. The seller is obliged to bear the clearance for exports as well;however,after the goods have been delivered sellers owes no responsibility for risks or damage. All the costs of risks and damages are borne by the buyer thereafter.
What is DAF - Delivered At Frontier?
In this type of contract the seller is obliged to ship all the products at the buyer’s border location. The seller is held responsible for all the costs during the shipment but he is not responsible for the loss or damages occurred after the shipment.
What is DES - Delivered Ex Ship?
In this contract type the seller is obliged to ship all the products at an agreed-upon point. The seller is not responsible for the clearance of the goods neither is he responsible for the loss or damages occurred after the delivery of the product at that agreed point.
What is DEQ - Delivered Ex Quay?
This term implies that the seller is obliged to ship all the products to the wharf, uncleared. Additionally, the buyer is responsible for any loss or damages. This term has been replaced by delivered at terminal and it is strictly used for ocean transportation.
What is DDU - Delivered Duty Unpaid?
This is similar to DDP, provided the seller would not be held responsible for carrying out the customs. All the customs essential would be borne by the buyer.
What is DDP - Delivered Duty Paid?
In this agreement the seller has to deliver the goods at the agreed-upon point. The seller has to bear all the costs as well as the risks of carrying out customs which includes the payment of duties, customs fees and taxes.
What is DAT – Delivered at Terminal?
This term implies that the seller is obliged to ship all the products to the agreed-upon terminal, uncleared. Additionally, the buyer is responsible for any loss or damages. Once the products are unloaded, the seller is not responsible thereafter.
What is DAP - Delivered At Place?
The seller, in this agreement, pays for all the costs necessary for the delivery of the goods except for the import clearance. The goods are shipped at the buyer’s disposal, ready for unloading, on the arriving means of transportation.
What is T/T
It is the simplest and a secure payment method which to as telegraphic transfer, or simply wire transfer. It uses a method of advanced payment when a sample is delivered from a seller to a buyer.
What is L/C
It is a document which is issued by the bank. It authorizes the bearer to draw a particular amount of money (as stated by the issuing bank) from the issuing bank or its branches or associated banks (or agencies).
What is D/A
D/A is a kind of a shipping document. It is held by the buyer’s banking authorities till the time he accepts and signs the draft.
What is western union?
It is a global money transfer service. It allows consumers to receive and send money across the borders. It is primarily done through a global network of TPA (Third-party agents) who use the money transfer systems worldwide. Payment methods include cash-to-cash, direct-to-account, Kiosks for deposits, cash-to-mobile, cash-to-card and kiosks for deposit and receive cash.
What is Money Gram?
It is similar to western union. It provides services such as money orders, money transfers, bill payments, etc. to people who do not have bank accounts (or who do not wish to use their bank accounts).
What is PayPal?
It is an online financial service which allows a person to pay via an internet account. It can be called as a virtual bank account. You can add your card details or your bank account details to your paypal and securely transfer money by choosing which of your card(s) or account(s) you wish to pay with.