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Guide to Incoterms 2000
Incoterms 2000 are a set of internationally recognised trading terms, defined by
the International Chamber of Commerce in publication number 560 Incoterms
2000, which are used for the purchase and shipping of goods across borders.
They deal with the documents required for global trade, specifying which
parties (buyer or seller) are responsible for which documents and are normally
specified in the contract of sale.
This guide is designed to provide a simplified reference. We recommend thatthe full text of the above document be consulted prior to entering into a
contract to buy or sell goods.
Contents
ACE European Marine Group .......................................................................................2
EX Works (The named point of destination).................................................................3
Free Carrier FCA (The named place) ......................................................4
Free Alongside Ship FAS (the named port of shipment)..............................................5
Free on Board FOB (The named port of shipment).......................................................6
Cost and Freight CFR (The named port of destination ) ...............................................7
Cost Insurance and Freight CIF (The named port of destination) .................................8
Carriage Paid To CPT (The named place of destination)..............................................9
Carriage Insurance Paid To CIP (The agreed place of destination).............................10
Delivered At Frontier DAF (The named place of destination)....................................11
Delivered ex Ship DES (The named port of destination) ............................................12
ACE Insurance S.A.-N.V.
ACE Building
100 Leadenhall Street
London EC3A 3BP
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ACE European Marine Group
In 1792, the Insurance Company of North America
(INA) insured the proud ship America as she
navigated the wintry seas from Philadelphia toLondonderry. Risk Management services were
provided by hiring a tug to assist the vessel to leave the
Delaware River safely.
In 1999, ACE Insurance purchased the successor
companies to the INA and continues the superior
tradition of marine insurance, risk management and
loss control services to its clients.
In 2001 ACE European Group was created combining
the businesses of ACE Global Markets and ACE
Insurance Company of Europe. The Marine business of
these two companies is combined under onemanagement but allows our customers to access two
distribution channels, Lloyds and the company market.
ACE European Marine Group employs a team of
transportation professionals with experience in
shipping, ship management, freight forwarding, andcontainer operations. They are assisted by surveyors
from other ACE worldwide companies (USA, Asia
Pacific, Latin America), the ACE network of marine
underwriters and claims adjusters and a panel of
independent survey agents
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EX Works (The named point of destination)
Type of Transport : Multi-Modal Type of Sale : On DepartureThe Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and Formalities
Assist the buyer in obtaining licences and
authorisations for export.
Obtain licences for export and import at his own
risk and cost
Transport and Insurance Contract
No obligation No obligation
Delivery/Delivery Price
Place the goods at the disposal of the buyer at the
named place of delivery
Receive the goods at the named place of delivery
Transfer of Risks
Carry all Risks up to named place of delivery. Carry all risks and damage to goods from namedplace of delivery.
Division of Costs
Carry all costs to named place of delivery. Pay all expenses from named place of delivery
plus duties/charges/taxes for import and export.
Notification
Quickly provide the buyer with the availability
and place of goods.
Provide the seller with date and transfer, if
stipulated in the contract.
Proof of Delivery
No Obligation Supply the seller the proof of transfer of the
goods.
Verification of Packaging/ Goods Inspection.
Expenses for verifying, packaging, marking of
goods.
Expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all information forinsurance and all documents for import and
transit.
Pay all expenses anticipated in obtaininginformation for insurance and documents for
import and transit.
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Free Carrier
FCA (The named place)Type of Transport : Multi-Modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorisations for exporting
the goods, at own risk and cost.
Obtain licences and authorisations for importing
the goods, at own risk and cost.
Transport and Insurance Contract
Transport:No obligation unless there is an
agreement with the buyer. Insurance No
obligation.
Transport contract at his own cost, unless there is
an agreement with seller. Insurance- No
obligation
Delivery/Delivery Price
Deliver the goods to the carrier (the agreed
date/the named point)
Receive the goods at the named point.
Transfer of Risks
Carry all Risks up to named point. Carry all risks of loss and damage to goods from
the named point, with exceptions.
Division of Costs
Carry all costs to named point. Pay various
customs formalities/duties/taxes for export.
Pay all costs from named point.
Notification
Quickly provide the buyer with the potential date
of transfer of goods to the carrier.
Provide the seller with carriers name and possibly
with mode of transport//date/delivery time.
Proof of Delivery
Supply certificate of delivery at own cost. Assist
the buyer in obtaining all transport documents.
Accept proof of delivery..
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
importation, or transit through a third country and
ll i f ti f bt i i i
Pay all costs anticipated in obtaining information
for insurance importation and transit documents.
S l th ll ith i f ti f th
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Free Alongside Ship
FAS (the named port of shipment)Type of Transport : Maritime Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain at own risk and expense any export
licence and complete all customs formalities
for export.
Obtain at own risk and expense any import licence
and complete all customs formalities for import and
for the transit of goods through a third country.
Transport and Insurance Contract
Transport -No obligation, Insurance-No
obligation
Transport contract, at own cost from port of departure.
Insurance No obligation.
Delivery/Delivery Price
Deliver the goods alongside the vessel (the
named port/the named date)
Receive the goods alongside the vessel (named
port/named date)
Transfer of Risks
Carry all Risks up to alongside vessel. Carry all risks of loss and damage to goods from
alongside vessel with exceptions..
Division of Costs
Carry all costs to alongside vessel plus
customs duties, taxes payable on export.
Carry all costs from alongside vessel plus
duties/charges/taxes payable on import.Notification
Quickly provide the buyer with the place and
time of delivery alongside the vessel.
Provide the seller with the vessel name, named port of
shipment, date of delivery within a reasonable
amount of time.
Proof of Delivery
Supply certificate of delivery at own cost
(alongside vessel) and help the buyer in
obtaining all documents for transport.
Accept the proof of delivery (alongside vessel).
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging,
marking of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
A i t th b i bt i i ll d t P ll ti i t d i bt i i i f ti
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Free on Board
FOB (The named port of shipment)Type of Transport : Marine Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorisations for
exporting the goods, at own risk and cost.
Obtain licences and authorisations for importing the
goods, at own risk and cost.
Transport and Insurance Contract
Transport and Insurance No obligation Transport contract at his own cost from the port of
loading. Insurance No obligation.
Delivery/Delivery Price
Deliver the goods onboard the vessel
designated by the buyer. (the agreed date/the
agreed port)
Receive the goods at the agreed port..
Transfer of Risks
Carry all Risks until the goods pass the ships
rail. (The agreed port)..
Carry all risks of loss and damage once the goods
passed the ships rail.
Division of Costs
Carry all costs to named port. Pay the costs of
customs formalities/duties/taxes for export.
Pay all costs once goods have passed the ships rail.
Notification
Advise the buyer that goods were loaded
onboard the vessel..
Provide the seller with vessels name point of shipment
and delivery within a reasonable time.
Proof of Delivery
Supply certificate of delivery at own cost. Accept proof of delivery..
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging,
marking of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
importation, insurance, and transit through a
third country.
Pay all costs anticipated in obtaining information for
insurance importation and transit documents and
refund seller those costs whilst lending his assistance.
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Cost and Freight
CFR (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain at own risk and expense any export
licence and complete all customs formalities
for export.
Obtain at his own risk and expense any import licence
and complete all customs formalities for import and
for transit of the goods through any country.
Transport and Insurance Contract
Transport contract until the named port, at his
own cost. Insurance No obligation.
Transport contract: No obligation.
Insurance-No obligation.
Delivery/Delivery Price
Deliver the goods on board the vessel (named
port/date/time period)
Accept delivery of goods on board the vessel and
receive the goods at named port of destination.
Transfer of Risks
Carry all risks until the goods pass the ships
rail (Loading port)
Carry all risks of loss or damage after the goods pass
the ships rail.
Division of Costs
Carry all costs to named port and freight,
costs of loading / unloading / duties / charges /taxes for export under contract of carriage.
Pay all costs from named port and costs and charges
of transport / unloading / lighter / transfer on the quay.
Notification
Advise the buyer that goods were delivered
on board the vessel.
Provide the seller with the shipment date and/or the
destination port within a reasonable amount of time.
Proof of Delivery
Supply the transport document for the agreed
port of destination, at own cost and without
delay..
Accept the document of transportation at agreed port,
if stipulated in the contract.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging,
marking of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
H l th b bt i ll d t f P ll t ti i t d i bt i i i f ti f
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Cost Insurance and Freight
CIF (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain at own risk and expense any export
licence and complete all customs formalities for
export.
Obtain at his own risk and expense any import
licence and complete all customs formalities for
import and for transit of the goods through any
country.
Transport and Insurance Contract
Transport and insurance contract at his own cost. Transport contract: No obligation.Insurane-No
obligation.
Delivery/Taking DeliveryDeliver the goods on board the vessel (named
port/date/time period)
Load delivery of goods on board the vessel.
Transfer of Risks
Carry all risks until the goods pass the ships rail
(Loading port)
Carry all risks of loss or damage after the goods
pass the ships rail.
Division of Costs
Carry all costs to named port and freight, costs ofshipment/unloading/duties/charges/taxes for
export. Pay Insurance costs.
Pay all costs from named port and costs andcharges of transport/unloading/lighter/transfer on
the quay.
Notification
Advise the buyer that goods were delivered on
board the vessel.
Provide the seller with the shipment date and/or
the destination port within a reasonable amount of
time.
Proof of Delivery
Supply the transport document for the agreed portof destination, at own cost and without delay..
Accept the document of transportation at agreedport, if stipulated in the contract.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
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Carriage Paid To
CPT (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for exporting
the goods, at his own risk and cost, including
transit through any country.
Obtain licences and authorizations for importing
the goods, at his own risk and cost..
Transport and Insurance Contract
Transport contract: at his own cost. Insurance
contract: no obligation.
Transport contract: No obligation.
Insurance No obligation.
Delivery/Delivery Price
Deliver the goods to the first carrier.(The nameddate/point)
Accept the delivery of the goods at named point..
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage from named
point.
Division of Costs
Carry all costs to named point and freight, costs
of shipment / unloading / duties / charges / taxes,payable under contract of carriage.
Carry all the costs from named point.
Notification
Advise the buyer of the place and estimated time
of delivery.
Provide the seller with the shipment date and/or
delivery within a reasonable amount of time..
Proof of Delivery
Supply the transport document for the named port
of destination, at own cost and without delay..
Accept the document of transportation at named
port, if stipulated in the contract.
Verification of Packaging/ Goods Inspection.Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
i t ti t it th h thi d t d
Pay all costs anticipated by seller and refund
th i d b ll hil l di i t
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Carriage Insurance Paid To
CIP (The agreed point of destination)Type of Transport : Multi-modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for exporting
the goods, at his own risk and cost..
Obtain licences and authorizations for importing
the goods, at his own risk and cost..
Transport and Insurance Contract
Transport and insurance at his own cost. Transport contract: No obligation.
Delivery/Delivery Price
Deliver the goods to the carrier.(The named
date/point)
Accept the delivery of the goods at named point..
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage from named
point.
Division of Costs
Carry all costs to named point and freight, costs
of shipment/unloading/duties/charges/taxes, cost
of Insurance.
Carry all the costs from named point.
NotificationQuickly notify the buyer with place and estimated
time of delivery.
Provide the seller with the shipment date and/or
delivery within a reasonable amount of time..
Proof of Delivery
Supply the transport document for the named port
of destination, at own cost and without delay..
Accept the document of transportation at named
port, if stipulated in the contract.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
importation or transit through a third country.
Pay all costs anticipated by and refund those
incurred by seller while lending assistance. Give
the seller all information for obtaining an
i
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Delivered At Frontier
DAF (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for exporting
the goods, at his own risk and cost including
transport through any country.
Obtain licences and authorizations for importing
the goods, at his own risk and cost..
Transport and Insurance Contract
Transport contract: at his own cost to the named
point of delivery at the frontier. Insirance No
obligation.
Transport contract: No obligation.
Insurance- No obligation.
Delivery/Delivery PriceDeliver the goods to the named point at the
frontier.
Accept the delivery of the goods at named point..
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage from named
point.
Division of Costs
Carry all costs to named point and costs ofunloading/duties/charges/taxes for export. Carry all the costs from named point plusduties/taxes/charges because of goods importation
and subsequent transport.
Notification
Advise the buyer of the shipment of the goods to
the frontier.
Provide the seller with the shipment date and
point of delivery within a reasonable amount of
time..
Proof of Delivery
Provide the document of transport or any otherproof of delivery to the named point on the
border, at his own cost and without delay.
Accept the document of transportation at namedpoint on border.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods
Pay expenses for inspection of goods before
departure
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Delivered ex Ship
DES (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for exporting
the goods, at his own risk and cost..
Obtain licences and authorizations for importing
the goods, at his own risk and cost..
Transport and Insurance Contract
Transport contract: at his own cost to the named
point of delivery.Insurance-No obligation
Transport contract: No obligation.
Insurance-No obligation
Delivery/Delivery Price
Onboard the ship, uncleared for import at the
named destination port.
Accept the delivery of the goods at named point..
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage from named
point.
Division of Costs
Carry all costs to named point and
duties/charges/taxes/customs formalities for
export.
Carry all the costs from named point including
unloading.
Notification
Quickly advise the buyer of the designated
vessels estimated time of arrival at named port..
Provide the seller with the date and port of
delivery within a reasonable amount of time..
Proof of Delivery
Supply the document of transport/delivery note at
his own cost and without delay.
Accept the document of transportation at named
port.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
importation and all information for obtaining an
i
Pay all costs anticipated by seller and refund
those incurred by seller while lending assistance.
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Delivered ex Quay Duty Paid
DEQ (The named port of destination)Type of Transport : Maritime Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain at his own risk and expense any export
licence and complete all customs formalities for
export of the goods and their transit through any
country.
Obtain at his own risk and expense any import
licence and complete all customs formalities for
the import of the goods.
Transport and Insurance Contract
Transport contract: at his own cost to the quay at
the named port of destination. Insurance-No
obligation.
Transport contract: No obligation.
Insurance No obligation.
Delivery/Delivery Price
Deliver the goods to the buyer, on the quay at the
destination port.
Accept the delivery of the goods at named port.
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage from named
point.
Division of CostsCarry all costs to named point and pay costs ofduties/charges/taxes/customs formalities for
export and import.
Carry all the costs from named point. All duties,
taxes and other charges payable upon import of
the goods.
Notification
Quickly provide the buyer with the designated
vessels estimated time of arrival at Destination
Port..
Provide the seller with the date and port of
delivery within a reasonable amount of time.
Proof of DeliverySupply the document of transport/delivery note
at own cost and without delay..
Accept the document of transportation at named
port
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods
Pay expenses for inspection of goods before
departure
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Delivered Duty Unpaid
DDU (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for exportingthe goods, at his own risk and cost..
Obtain licences and authorizations for importing
the goods, at his own risk and cost..
Transport and Insurance Contract
Transport contract: at his own cost to the named
point of destination. Insurance No obligation.
Transport contract: No obligation.
Insurance No obligation.
Delivery/Delivery Price
Deliver the goods at the named point. Accept the delivery of the goods at named point..
Transfer of RisksCarry all risks up to named point. Carry all risks of loss or damage to the goods
from named point.
Division of Costs
Carry all costs to named point and pay costs of
duties/charges/taxes/customs formalities for
export.
Pay all costs from named point and costs of
customs formalities, duties and taxes and other
charges for import.
NotificationAdvise the buyer that the goods were shipped and
inform him of the possibilities for receipt.
Provide the seller with the date and place of
delivery within a reasonable amount of time..
Proof of Delivery
Supply the document of transport/delivery note at
own cost and without delay..
Accept the document of transportation at named
port.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, marking
of goods.
Pay expenses for inspection of goods before
departure.
Other Obligations
Help the buyer obtain all documents for
importation or transit and all information for
obtaining an insurance.
Pay all costs anticipated by seller and refund
those incurred by seller while lending assistance.
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Deliver Duty Paid
DDP (The named place of destination)Type of Transport : Multi-modal Type of Sale : On Departure
The Seller must The Buyer must
Supplying Goods/Payment
Supply goods, invoice and certificates in
accordance with sales contract
Pay the price agreed upon in the sales contract
Licences, Authorizations and FormalitiesObtain licences and authorizations for bothexporting and importing the goods, at his own
risk and cost..
Assist the seller in obtaining licences and
authorizations for importing the goods and transit.
Transport and Insurance Contract
Transport contract: at his own cost to the named
point of destination. Insurance No obligation.
Transport contract: No obligation.
Insurance-No obligation.
Delivery/Delivery Price
Deliver the goods (named place/date/time period) Accept the delivery of the goods at named point..
Transfer of Risks
Carry all risks up to named point. Carry all risks of loss or damage to goods from
named point.
Division of Costs
Carry all costs to named point and pay costs of
duties/charges/taxes/customs formalities for
export and import.
Carry all the costs from named point.
Notification
Advise the buyer that goods were shipped and
inform him of the possibilities of receipt.
Provide the seller with the date and place of
delivery within a reasonable amount of time..
Proof of Delivery
Supply the document of transport/delivery note at
own cost and without delay..
Accept the document of transportation at named
point.
Verification of Packaging/ Goods Inspection.
Pay expenses for verifying, packaging, markingof goods.
Pay expenses for inspection of goods beforedeparture.
Other Obligations
Help the buyer obtain all documents for delivery
of the goods.
Help the seller, at his request and his own risk
and cost, obtain documents required for delivery
f th d
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Page 16 of 16
AT A GLANCE Interpretation of the INCO Terms
Note: to avoid any confusion, an INCO Term must be accompanied by a named place e.g. FOB Montreal ; EXW Birmingham
EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDPSERVICES Ex Works Free Carrier FreeAlongside
Ship
FreeOnboard
Vessel
Cost &Freight
CostInsurance &
Freight
CarriagePaid To
CarriageInsurance
Paid To
Delivered AtFrontier Delivered ExShip
Delivered ExQuai Duty
Paid
DeliveredDuty Unpaid
DeliveredDuty Paid
WarehouseStorage Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
WarehouseLabour Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller SellerLoadingCharges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland Freight
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
TerminalCharges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarder'sFees Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading OnVessel Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/AirFreight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Charges UponArrival Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Sellerv Seller Seller Seller Seller
Duty, Taxes &Customs
Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer SellerDelivery ToDestination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller
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