Important and practical business terms (Types of inspection certificates)
9 January 2022
Total value of exports and imports goods from Switzerland
24 October 2022
Important and practical business terms (part 3) :
9. Received for Shipment Bill of Landing:
It is a document similar to a bill of lading stating that the goods have reached the stage of shipment, which is issued by the carrier. This document is issued before shipment by freight; As a result, it differs from the On Board Bill of Landing and indicates the arrival of goods and not necessarily their arrival on a ship or any type of vehicle.
When the consignments are loaded on a ship or vehicle, this document will be replaced with on Board Bill of Landing. Receipt for shipping can have an optional part, i.e. stamping (On Board Notation).
The presence of this seal does not mean the announcement of the loading of goods on a ship or vehicle; In fact, this document does not have the necessary credit to ensure the loading of goods, with the banks for issuing credentials, bank guarantees, etc., unless the receipt for shipping has a loading stamp.
Incoterms:
Incoterms are the abbreviated three-letter business terms that describe daily business practices and their responsibilities in commercial contracts. Here, a brief description for each of the eleven terms of Incoterms, in the stage of delivery of goods, risk transfer, point of cost transfer, sometimes insurance, and so on will be demonstrated.
The Incoterms Regulations were first published in 1936. These terms are sometimes edited as the reflection of changes and corporate business needs. Incoterms have been updated every 10 years since 1980. Some of the terms of Incoterms are especially used for sea shipping and trading, some for air shipping and even land shipping, but some of them do not have such restrictions and are used for any situation.
The first term (EXW-EX WORKS):
This term means, delivery at the place of work of the seller. Insert this term as in the following formula:
EXW + (PLACE OF DELIVERY) + INCO TERMS 2020
In this term, the seller must prepare the goods and invoice or business list in accordance with the sales contract and provide any required compliance documents, and the buyer must pay the price of the goods in the contract of sale.
"Ex Works" means, the seller has delivered the goods to the buyer when, he has provided the goods in buyer’s hand at the agreed place (such as a factory or warehouse); this place may or may not belong to the seller. The seller is not obliged to load the goods on any vehicle or act under any customs formalities (if such formalities exist).
This rule applies to any type of transportation. The parties to the contract are required to provide only the exact name of the place of delivery with details. At this point, the risk is transferred from the seller to the buyer, and from here the costs are borne by the buyer. In other words, when the delivery takes place, the goods are at the disposal of the buyer, even when they have not been loaded; However, the risk of loss or damage to the goods during the loading operation by the seller, which is imminent, is the responsibility of the buyer, while the buyer has not actually played a role in the loading operation.
However, the seller has no responsibility to the buyer for concluding the contract of carriage of goods, at the request of the buyer, the seller must present all the data on the risks and costs associated with the transportation of goods; such as safety measures related to the transportation of goods to the buyer for the transportation of goods.
If the parties do not specify the exact place of delivery, it is as if the seller has the option to choose the place which he seems the best to deliver, and this puts the buyer at risk. EXW has the lowest requirements and obligations for the seller compared to other rules of Incoterms, so buyers should use this term more carefully.
