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Understand the Types of Transport

There are three types of transport :

ICC 2010 Incoterms rules can be used for all modes of transport

FCA: Free Carrier, goods cleared through customs and loaded in the country of departure, at the seller's or buyer's freight forwarder's premises;

ICC 2010 Incoterms rules can be used for river and/or sea transport

FAS: Free Alongside Ship, loaded on the quay at the port of departure;
FOB: Free On Board, loaded on the ship, with the cost of loading the ship depending on the liner term indicated by the shipping company (at the buyer's expense).

FCA - Free Carrier

1st possibility: from the supplier's warehouse

It is the buyer who chooses and pays for the mode of transport and the carrier.

The seller fulfills his obligations and transfers the costs and risks when he delivers the loaded and customs-cleared goods on the means of transport sent by the forwarder or carrier designated by the buyer to his warehouse.

The seller is responsible, at his own risk and expense, for providing the buyer with all authorizations required for the export of the goods (licenses, customs formalities, etc.).

 

2nd possibility: pre-carriage and delivery to the buyer's carrier at the point of departure of the main transport (port, airport or groupage)

The buyer chooses the mode of transport and the carrier, and pays for it. The seller fulfills his obligations and transfers the costs and risks when he delivers the unloaded but customs-cleared goods on the means of transport used for pre-carriage from his warehouse to the agreed point of delivery at the forwarding agent or carrier designated by the buyer to carry out the main carriage.

The seller is responsible, at its own risk and expense, for providing the buyer with all authorizations required for the export of the goods (licenses, customs formalities, etc.).

V: costs/risks to be paid by the seller - A: costs/risks to be paid by the buyer.

 

FAS - Free Alongside Ship

Exclusively maritime or inland waterways

As a reminder, the incoterm is exclusively maritime or inland waterways.

According to this incoterm, the seller's obligations are fulfilled when the goods cleared for export have been placed alongside the ship at berth, at berth on the pre-carriage means of transport or in unloaded lighterage (barges or barges).

It is the buyer who designates the vessel, pays all costs and bears all risks from unloading of the seller's pre-carriage means at the port of departure.

 

FOB - Free On Board

Exclusively by sea or inland waterways.

The seller must deliver the cleared goods to the agreed port of shipment and have them loaded, at his own expense and risk, on board the vessel designated by the buyer.

The transfer of risk between buyer and seller takes place when the goods are on board the vessel at the port of shipment.

The buyer selects the vessel and pays for sea transport from the port of departure. 

Export formalities are the responsibility of the seller.

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