Methods of transporting goods in international trade
Methods of transporting goods in international trade
In international trade, trade and transportation of goods is done according to custom. The customs and habits of different nations are different and cause problems in international transactions. These problems can appear in different aspects of contract implementation. The parties to the contract are not aware of the customs and habits of each other and after concluding the contract, they face questions in which each has a different answer: how to procure the goods. ? Who is responsible for preparing the licenses, permits and customs formalities that are necessary for the goods to cross the border? The contract for the transportation of goods and insurance will be concluded by the seller or the customer and at what cost? Where is the exact place of delivery? How is the guarantee transfer? Under what circumstances will the seller receive the price of the goods sold? How will the packaging be done and who will bear the costs? How is the inspection of goods and their compliance and non-compliance with the promised goods and at whose expense? And what are the consequences?
Over time, the customs and habits of different countries take on a cohesive form, so that in some countries a standard answer can be provided for all the questions raised. It is later used in specific terms. However, these terms are common in different countries and due to the dispersion of the terms, the parties to the contract do not know and can not be aware of the exact extent of their duties and responsibilities in international trade. There are cases where such terms exist in two countries, each dealing with it differently, so that the limits of duties and responsibilities of the seller and the customer in one method of transportation vary from country to country: for example, Germany’s long-term performance on FOB shipping (.BOF) was more limited than in other Western countries: in Germany only the cost of shipping by FOB was borne by the seller, while in other European countries the risk was borne by the seller.
From the beginning of the twentieth century, with the rapid increase of international transactions, it was necessary to find the same answers to the same questions and to create a unified procedure in international transportation, which required more speed than before. To this end, various organizations around the world, the most successful of which was international trade, developed a set of international rules to interpret the most common trade terms in foreign trade.
The International Chamber of Commerce first collected the existing terms and a comparative study on the customs and habits of different countries, and by finding commonalities, brought them closer to each other and finally presented them to merchants as a set of coherent rules governing international transportation. It is an undeniable fact that international trade is not included, and at least once a year that chamber reviews the proposed set of rules. Since 1936, which was the year of the first publication of international regulations for the interpretation of commercial terms, it has been revised several times, the first time being in 1990.
International rules for the interpretation of international trade terms have been so successful that there is little contract in international trade that does not use one of these terms in relation to transportation, to the extent that its interpretation requires us to study the subject further. Article.
Topic 1 – International Shipping Terms
In the study of international trade agreements, we encounter acronyms (delivery on deck) (cost and freight) (cost and freight and insurance). ), And the rules for its interpretation provided by the International Chamber of Commerce (Incoterms) are also called.
We study first its formulation and evolution, then its legal nature, and thirdly its scientific benefit.
A – Compilation and transformation
Preliminary work on the formation of the Incoterms was prepared in 1920 at the First Congress of the International Chamber of Commerce. A specialized committee was formed at this congress, which soon brought together experts from different countries. Under these conditions, very valuable work was done using the method of comparative law. However, the first publication of trade terms was postponed until 1929, when it contained only six terms and interpretations. It was an incomplete but very useful and valuable start.
Later, in 1936, the first official publication of Incoterms was made in the term (no). These terms represented the most common methods of transporting goods in their time. These include: egairrac ro thgierF, FIC, F dna C, BOF, SAF, roF, wxE (krowxE) (3) And then enumerates the customer’s obligations separately. The seller and the customer use it to define the limits of their duties and responsibilities, and by referring to it, they determine the limits of their duties and responsibilities, and by referring to it, they become aware of the limits of their duties and responsibilities. Thus, instead of explaining in the contract of sale the mutual duties and obligations of the parties regarding the carriage of goods, citing, for example, the RFG shipping method, the seller knows that it is his duty to determine the contract of carriage at his own expense. Concluded with the usual conditions in the common and various seas of a seagoing ship, which is usually used to carry the goods subject to the contract, so the two main characteristics for trade terms can be enumerated.
1- At the same time, this method is well-known and general, and based on it, bargaining between the parties to the contract is prevented in the future, and it has an extraordinary effect on accelerating international trade exchanges, which are essentially needed. Concluding a contract by telex and fax or any other means, if the details of the obligations of the parties are to be written, is a very difficult task and involves a lot of waste of time.
2. The second role (trade terms) plays is to identify and coordinate international shipping methods, which has been one of the highest goals of international trade law practitioners since the beginning of the twentieth century. This goal is clearly stated in the official introduction of Incoterms in 1953. According to this preamble, the purpose of Incoterms is to establish a set of international rules for the interpretation of the most common terms used in foreign trade. Trade in different countries).
We said that the first official release of Incotrums was in 1936, but in 1967, 1976, 1980 and 1990, there were also amendments to Incotrums that we consider useful only the study of Incotrums in 1990, which is now executive.
B- Legal nature
In principle, the rules set by international commercial institutions are optional. The International Chamber of Commerce, which is made up of national committees of different countries and does not accept any government as a member according to its statutes, is no exception to this principle. In most of the regulations set by the International Chamber of Commerce, its requirement is mentioned as a condition in the introduction.
The optional feature of the Incoterms of 1953 is as follows. The terms are explicitly stated in their contract – the same formula is repeated in Incoterms 1990 (No. 22 Introduction). In this respect, the value of Incoterms is reduced to the level recommended by the International Chamber of Commerce to traders for its use.
The rules of the Incoterms are optional in nature: the application of international trade terms may not necessarily be possible in different regions. If we have compliance with the rules, it is natural that these rules can not be mandatory. Rather, the parties must have the right to change some of its provisions. It is permitted for the specific circumstances of the transaction to adapt some of its terms to the specific circumstances of their transaction, in which case the article or articles of the contract that are inconsistent with the rules of Incoterms shall be enforced and the rules of Incoterms It governs the case.
The optionality of invoking Incoterms has not been an obstacle to its prosperity and success. As mentioned, today there are fewer international contracts that require the transportation of goods from one country to another that have not invoked the rules of Incoterms. In addition to private contracts, most public and private terms of sale and model contracts, which have previously been the main source of custom, rely on Incoterms, and such international reputation of Incoterms has created a kind of adverse effect on custom, from which The success of Incoterms is due to its adaptation to international business performance, but the continuation of this success requires constant revision and adaptation to new international trade practices of which the International Chamber of Commerce is aware. And as has been said, he has reconsidered it this time.
C – practical negation
Incoterms has solved three major problems in the transportation of goods in international trade. These three problems are: 1) delivery of goods 2) transfer of exchange guarantee 3) division of costs and completion of formalities and preparation of documents related to crossing the border.
1- In Incoterms in 1953, in counting the obligations of the seller, the goods (delivery) were relied on more than other obligations. But in Incoterms 1990 is the first commitment of the seller to the supply of goods. This precedence and lag in composition is related to the developments of the international economy. Nowadays, transactions are made that do not have a subject at the moment of criticizing the contract and the seller undertakes to prepare it at a certain time interval. Sometimes the product has a special and exclusive consumption that is not found in the open market and can not be used by the public and must be made to order by the customer and to meet his specific goals. Sometimes the manufacture of goods requires a large investment that the seller can not provide alone and is made with the help of the buyer’s capital. In such cases, the procurement of goods requires investment and its delivery is a separate stage of concluding the contract. Incoterms have adapted to the passage of time since 1990, and instead of delivering the goods, they have placed the supply at the top of the seller’s obligations. According to this obligation, the seller is obliged to prepare the goods and commercial inventory, or the equivalent electronic message according to the contract of sale, and then deliver the goods on the specified date within the specified time within a specified place.
2- In international sales, the issue of transfer (exchange guarantee) is extremely important. Because the risks that threaten the seller before and after the receipt are far greater than the domestic sale, and the duration of the goods is at risk is longer than the domestic sale.
The problem arises in the sense that after concluding the sale, the goods that are the subject of the contract are lost or damaged or corrupt, and raises the question of whether the results should be borne by the seller or the customer? It is natural depending on which of the two is guaranteed. The obligation to pay the price is waived or incurred by the customer.
The dangers that threaten the goods are varied and in addition to material events such as falling goods during loading and unloading, train derailment and ship collision on a rock or plane crash and trailer accident, including political events such as confiscation of property by governments and Or bans on the export and import of certain goods. The policy of economic blockade of some countries by others, which is a phenomenon of our time, has a direct effect on the commitment to deliver goods. Therefore, determining who should bear the risks of the events is of particular importance.
In Roman law, under the influence of the proverb onimod tirep ser, there is a direct relationship between the transfer of a guarantee and the transfer of ownership, which is reflected in the law of countries that have been influenced by Roman law.
In French law, although the transfer of a guarantee is explicitly accepted by the agreement of the parties, the exception to the principle well illustrates the effect of the proverb of Roman law. Article 1585 of that law became.
According to Article 1138, the obligation to deliver the object is completed only with the consent of the parties to the contract. The principle set out in the first paragraph of this article is explained in the second paragraph: from the moment the said object was to be delivered, the creditor becomes the owner of the object and the risks are transferred to him even if the object has not been received. This article is general and, considering that it is included in the obligations and contracts section of the civil law, this type of delivery of the object is implemented according to any contract.
Following this generality, Article 1624 on the loss of goods before receipt has referred to the same Article 1138. Therefore, in principle, in French law, in case of loss, extinction or spoilage of the goods before delivery, the customer will bear the damage.
However, Article 1585 of the said Civil Code makes important exceptions to the principle. According to this article, in case the seller is sold by weight or counting or size, the seller is responsible for the loss of the seller until the weight, counting or size is done. The importance of the exception is due to the fact that most of the goods traded are determined and separated by these methods, and in practice the scope of the exception is such that it has overshadowed the principle. The same rules have been followed in English law. Articles 16 to 20 of the Goods Sale Law of this country indicate the transfer of ownership at the same time as the conclusion of the contract, even if the moment of payment of the price or delivery of the goods is late.
(The rule in Islamic law is that the loss of property must be from the owner’s pocket and the one who receives the financial benefit must bear the compensation for it (I am the one who is determined). The decisive Imami jurists guarantee the seller and raises the question that the rule (loss of the seller before the receipt is an exceptional ruling or the exchange is necessary).
In the current law of Iran, the contract of sale is proprietary (Article 362 of the Civil Code of Bandavol), ie it is transferred to the customer as a result of a party agreement and as soon as the contract is concluded, however, according to Article 387 of the Civil Code.
On the contrary, in German and Swiss law the case is presented in a different way.
Under German law, according to Article 446 BGB, the exchange guarantee is transferred upon delivery of the sold object and is not completed only with the consent of the parties. In Swiss law, too, the rule is that the delivery of an object is necessary for the transfer of ownership.
From the study of comparative law, it is inferred that there are two different theories about the transfer of guarantee in national law. According to the first theory, the transfer of the guarantee takes place simultaneously with the delivery of the seller, and according to the second theory, the transfer of the guarantee coincides with the agreement of the parties.
In international trade, the link between the transfer of a guarantee and the transfer of ownership or the realization of a party’s will and the conclusion of a contract is not considered. In this type of business, the transfer of collateral must be studied in the context of the interests of the debtor and the creditor and their debtors and creditors and other circumstances that surround the position, and in each method of transportation the issue of guarantee transfer must be determined in a special way. In addition, Incoterms claims to be enforceable on international carriers and must be regulated in a way that avoids conflict between different legal systems. To this end, and regardless of the theory governing the domestic law of this or that country, Incoterms has determined the moment of transfer of the guarantee in each specific method of transportation, which will be implemented uniformly worldwide, and thus the main problem in transportation. Has eliminated the goods. For example, the parties to the contract with the professor by the method of transporting goods by FOB (.B.O.F) have implicitly abandoned the guarantee transfer systems of their countries and have accepted the system of guarantee transfer by the method of transporting goods by FOB (.B.O.F). In this type of transportation method, the moment of transfer of the guarantee of the moment of passing the goods through the ship’s railing in the port of loading is determined. Until the goods pass through this fence, all the risks to the goods are the responsibility of the seller and after crossing the ship fence, the customer is responsible.
Similarly, in each type of velvet method that Incoterms has offered to merchants, the moment of guarantee transfer is clearly defined and the limits of seller and customer responsibilities are carefully determined.
3- Another issue that Incoterms has clarified its task well is the issue of imposing costs.
In general, there is a direct relationship between cost sharing and asset recovery. These things pay off. Therefore, the seller pays all the expenses that are necessary until the moment of delivery (which is also the moment of guarantee transfer). However, this does not prevent the seller from incurring costs under the terms of the contract after the transfer of the guarantee – this type of cost is more related to the cost of sending the goods, which may be the cost of sending (shipping costs other than freight) land, Be it by air or sea. Except for these exceptional cases, the seller will always bear only the costs that are necessary for the delivery of the goods.
However, Incoterms has deemed it necessary to clarify the obligation to pay the costs arising from the fault of each party. If the cargo fails to comply with the contracted time to load the cargo, it will be obliged to pay any additional costs, even though the goods have not yet passed the ship’s fence and the costs are borne by the seller. For example, if the ship arrives at the port earlier than promised and the goods are not ready for loading and the shipowner requests the right of suspension, then because the customer has sent the ship to the port before the scheduled time, he must pay the costs of the ship. On the contrary, the ship may enter the port on time, but due to poor organization of the goods, the goods are not ready to be loaded on time, and as a result, the ship will be delayed.
Topic 3 – Terms applicable to types of transportation
The traditional method of international transportation is to transport any goods by air, land and sea to another country. The rules of the Incoterms of 1953 were based on this. In Incoterms 1990, a method has been adopted that does not only consider the distinction between maritime transport with different types of transport.
In 1990, Icotrums had seven common modes of transport between different modes of transport, including combined transport.
The seven types of transportation mentioned are:
1- WXE Summary of the word skrow xE means delivery at work
2- AGF “” reirraC eerF “” Delivery to the carrier
3- TPC “” ol diaP egairraC “” Shipping, paid up to
4- PIC oT diaP ecravitsni dna egairraC Freight and insurance paid
5- FAD “” retnorF ta derevileD “” Delivery at the border
6- UDD “” diapnU ytuD derevileD “” Delivery of paid tolls
7- PDD “” diaP ytuD derevileD “” Delivery of unpaid tolls
A. Delivery to the carrier
We divide these seven types of transportation methods into two categories and study them.
In these three ACF TPC .piC terms, we now describe the commonalities and differences.
1- Common funds
In the contract of sale, which refers to (delivery to the carrier), the seller and the customer determine a certain point at the time of concluding the contract that the goods will be delivered at that place.
In Mardakiyah, the point of meaning is not specified. The seller has the right to choose the appropriate point in the range in which the goods can be transported in Atyrau.
In this type of contract, the carrier is the person who undertakes in the contract to carry out the execution or pre-arrangements for the carriage by rail, road, sea, inland waterway, sea or a combination of these types. The customer may order the seller to deliver the goods, for example, to a non-carrier, in which case it is assumed that the seller’s duty to deliver the goods ends when the goods are under the supervision of that agent. To be placed.
Recently, in different countries of the world, the use of terminals for the transportation of goods has become the current method and its use has become common in transportation contracts. The term transport term in the International Chamber of Commerce rules refers to a railway station, freight station, terminal or container area, multi-purpose mixed terminal or any area dedicated to the carriage of goods.
In (delivery to the carrier), the seller, in addition to the goods, must prepare the black business or equivalent electronic message and the compliance certificates provided in the contract, receive the issuance licenses and other official licenses at his own expense and responsibility. Carry out the customs required for the export of the goods and bear all the risks of loss and damage to the goods until the time of delivery. How to deliver the goods is that the seller must deliver the goods on a specified date and place or at a normal time and place for such a purpose under the supervision of the carrier or other entities named by the customer. Deliver. Inform the customer in a timely manner of placing the goods under the supervision of the carrier, or possibly the carrier refusing to take delivery of the goods.
Goods that can be delivered are inspected, packaged, marked. The cost of those inspection operations that are necessary for the delivery of the goods to the carrier (size, weight, counting) is the duty of the seller, but if the customer wants with confidence. If he delivers more goods, he can inspect them at his own expense.
2- Cases of bookkeeping
In the different methods of transportation that (delivery to the carrier) is done, there are also differences, which are mainly related to the conclusion of the contract of carriage and insurance.
In the ACF shipping method, the seller has no mandatory obligations regarding the shipping contract. Of course, if the customer requests or the custom of the trade is on it and the customer does not give an order to the contrary, the seller can conclude the shipping contract according to the usual method with the responsibility and cost of the customer.
In contrast to the TPC (ot diaP egairraC) shipping method, the seller is obliged to conclude the contract of carriage of the goods to the designated point at the designated place at the designated place with normal conditions, at the usual route in the usual way, if the item If there is no agreement, the seller can choose the point that is most suitable for him in the designated place.
In this type of shipping method, as in the case of ACF (reirraC eerF), the seller has no obligation to insure the goods.
In the case of transport method pic (ot diap ecnarusni dna egairraC) the seller, in addition to concluding the contract of carriage in the same way .T.P.C is obliged to conclude the insurance contract at his own expense.
The details of the insurance contract are agreed in the main sale contract, but according to Incoterms, the insurance must be concluded in such a way that the customer or any other person who has an interest in the commodity insurance can directly claim damages from the insurer. Or reputable insurance companies are concluded and the minimum insurance coverage is in accordance with the terms of the London Institute of Insurers.
As can be seen, the difference between shipping methods (delivery to the carrier) is that, in the ACF shipping method, the seller is not obliged to conclude the contract of carriage and insurance, while in the TPC shipping method, the seller is obliged to conclude the insurance contract and the shipping contract at cost. It is itself
B – Delivery at the border
In the method (delivery at the border) in the contract of sale, a certain point at the customs border of the neighboring country is determined that the seller must deliver the goods at that point. The seller’s obligation ends when he clears the goods for export from the customs of his country and makes them available to the customer at the designated place.
1- Sharing funds
Three terms “PDD.UDD-FAD” from the terms Incoterms 1990 are assigned to the delivery of goods at the border.
The term (border) is general and therefore is used for any border, including the border of the country of export. Can be used.
In different types of methods of transportation and delivery of goods (border), the seller must prepare the goods and business list or equivalent electronic message in accordance with the contract of sale and prepare other certificates of conformity that the contract may require, licenses, and other certificates of conformity that may Prepares the necessary contract, obtains licenses, permits, and customs formalities that require the export of goods at its own expense. If the goods are to pass through a third country, the seller must carry out the customs formalities for the transit of the goods. Payment of shipping costs and concluding a contract to transport the goods to the designated point is another duty of the seller. After performing these formalities, provide the goods to the customer without any action regarding insurance, with delivery documents such as document, shipping or equivalent electronic message at the specified place of delivery on the specified date or time. Any failure to perform these duties will result in liability.
In the case of (delivery of goods at the border), Incoterms has designated a point where the responsibilities of seller and customer intersect. Up to reaching the point of delivery, all costs related to the goods and their transportation and the costs of performing the necessary customs formalities for the goods and all responsibilities for loss, destruction or damage to the goods are the responsibility of the seller. From that point on, the seller has no responsibility for the goods and his obligations end with the correct delivery. This is the end point of the seller’s obligations, the beginning point of the customer’s obligations. Only in the case of the obligations of the seller or the customer, as the case may be, the responsibilities will be extended to or before the point of retaliation if they have committed negligence. For example, in some cases, the seller is obliged to determine the date or place of delivery of the goods and inform the seller in a timely manner. It is for sale.
2- Cases of differentiation
The differences between the three methods of transportation (delivery of goods at the border) are mostly related to the point of delivery of goods, which, depending on the case, in the country of sale after clearance but before the customs border of the neighboring country or in the country of entry after customs and Or it is done at a certain point inside the importing country.
Delivery of goods at any point of one also includes costs related to the goods up to the point of delivery. These costs, in addition to freight, packaging, marking, etc., which are related to the goods themselves, also include costs related to the destruction or damage to the goods.
In the FAD shipping method, the sale of the goods ends when the goods are cleared for export and delivered at the designated point and place at the border, but before the customs border of the neighboring country. This term is mostly used in rail or land transportation and is applicable to any other type of transportation. Here, the intersection of the duties and responsibilities of the seller and the customer is the point between the two borders of the neighboring country. In order to reach this point, the goods must necessarily pass through another country. In this case, the related costs will be borne by the seller. By giving an example, the issue becomes clearer:
Suppose an Iranian trader buys goods in France and cites the FAD shipping method in the contract. In this case, the French merchant, after performing all the formalities that require the goods to leave France and transit through different countries. Must deliver the goods at the border, after passing and clearing the goods through the Turkish customs and before entering the Iranian customs.
The second type (border delivery) is UDD, which is an abbreviation of the term (diapnU ytuD derevileD). In this type of shipping method, the seller’s duty on delivery ends when he delivers the goods to the customer at the designated location in the country of entry. The seller must conclude a shipment contract with the carrier after preparing the goods according to the contract and obtaining licenses, licenses and formalities (customs). On the due date, by accepting the responsibilities of loss or damage to the goods and payment of costs at the time of delivery and timely notification of the buyer and preparation of delivery documents, inspect the goods and pack the goods at the specified date or within the deadline after crossing the border without payment Provide duties, taxes and other formal expenses payable on arrival upon payment of the said customs formalities.
The customer is responsible for paying the official costs of importing goods such as tolls, taxes and other official expenses, just as specified, the cost of performing the formalities is borne by the seller. However, in contracts, the term U D D is sometimes used in addition to, for example: “:
(noitanitsed fo ecalp demaN) TAV UDD
The application of this type of addition indicates the agreement of the parties to impose official costs and some taxes, such as value added tax on the seller. The result is that if the UDD is applied without surcharges, the seller’s obligation on the goods will end without payment of customs duties and other taxes and official import duties. However, if the parties want to leave the payment of some of the costs payable upon arrival of the goods to the seller, they must explicitly stipulate in the contract.
Therefore, the difference between FAD UDD is in the same delivery of goods at the border point. Which is done in FAD before crossing the Iranian border and in UDD after crossing the Iranian border.
The third method of transporting (delivery at the border) paid tolls (diaP ytuD derevildD) is PDD. The meaning of this term is that the seller’s duty regarding the delivery of the goods ends when the goods are delivered to the designated place in the country of entry by paying all the costs mentioned in raising the UDD and taking the same guarantee and providing the same Deliver the documents and documents within the country at the place specified in the contract. In this type of method, the seller is responsible for transporting duties and customs duties and other formal and informal costs.
In the above example, a French trader who has a contract with an Iranian trader for the delivery of Qazvin PDD in front of the factory with a specific address, the seller will not be performed unless the goods are in front of the specified factory in the customer’s office.
The difference between this type of shipping method and the previous shipping method is in transporting goods from the Bazargan border to the factory in Qazvin, which has been identified as a delivery point. The transfer of the delivery point of the goods from the border of Bazargan to the front of the factory in Qazvin includes the payment of shipping costs and the acceptance of risks and responsibilities and the necessary costs for the work to be done by the seller.
In short, comparing these three methods of transportation, we can see the difference in the rate of progress to the destination of the goods, which the more progress is made, the heavier the duties and responsibilities of the seller.
In the combined transport of land, air, sea rail, there are two terms in the two ends, the method of transport, in the method of transport WXE for short (skroW XE) means (delivery at work) goods in the country of sale and at his workplace or factory and Or the warehouse belongs to him. In the PDD method, the goods must be delivered at the other end, ie at work or in a place in the buyer’s country.
In Incoterms 1990, the following six terms are assigned to shipping by sea:
1- SAF acronym (pihS edisgnola eerF) means delivery on board
2- BOF “” (draob no eerF) “” Delivery on deck
3- REC “” (thgierF dna tsoC) “” Shipping cost
4- FIC “(thgierF dna ecnarusni tsoC) paid shipping
5- SED “” (pihs XE drevileD) “” Delivery from ship
6- QED “” (yauQ XE drevileD) “” Delivery to the dock
Of these terms, we study the three most closely related terms B.O.F, R.F.C-FiC in paragraph A, and the other three terms in paragraph B.
A. Loading on the deck of the ship
The similarity of the three terms .B.O.F, R.F.C, F.I.C is that all three terms of delivery of goods take place on the deck of the ship.
(Delivery on deck) means that the seller’s duty to deliver the goods ends when the goods have passed the ship’s railing at the designated port.
1- Common funds
In this type of transportation methods, the seller must provide the goods and the equivalent business list or electronic message with the certificate of conformity of the goods that will be delivered to the promised goods. After inspecting the quality and quantity of licenses, obtain the issuance or other licenses required for the export of goods. He is also responsible for performing customs formalities for its issuance and cost.
After preparing the goods and solving all the problems related to its issuance as described, deliver the goods on the specified date or within a certain period of time on the supply of the ship determined by the customer, according to the custom of the port of loading. Inform the customer about the delivery of the goods in time so that he can prepare for the delivery of the goods.
Delivery of goods is accompanied by documents that will also provide those common documents for the customer. In the shipping method (delivery on deck), the point of intersection of the responsibilities and duties of the seller and the customer is the passage of the goods through the ship’s railing. Until it reaches the point of delivery, ie the ship’s fence, all costs related to the goods and its transportation and the costs of customs formalities required for the export of goods and the value of the necessary documents are the responsibility of the seller. He is also the guarantor of the poor or the extinct or the damage to the goods. From that point on, that is, from the moment of passing the fence of the ship, the seller has no responsibility for the goods and with the correct delivery, the seller’s responsibility for the delivery of the goods ends and the transfer of the guarantee is done.
This is the end point of the seller’s obligations, the beginning point of the customer’s obligations, and only in the case of the seller’s obligations will a sample be extended, as the case may be, before or after the goods have passed the ship, who have failed to perform their duties. For example, in a B.O.F shipping method, the customer must inform the seller of the ship name, point of loading, and time required for delivery in a timely manner. Now, if due to the customer’s negligence, either the designated ship does not arrive on time, or arrives sooner or later, and as a result the ship is delayed in port, the customer is responsible for paying the delay fee even though the goods have not yet passed the ship fence. Shipping and other costs will be. Conversely, if the seller is hesitant in preparing the documents and as a result the goods are damaged, the costs will be incurred even after the goods have passed through the ship’s railing, the payment will be at his disposal, even if the goods have passed the ship’s fence.
In these types of shipping methods, in addition to the main obligation, which is the delivery of goods and payment of the price, the seller and the customer must provide all the necessary documents for the export or import of goods from their country or to the country.
2- Cases of differentiation
In the methods of transportation (delivery on deck) there are also different cases, which are mainly related to the same contract of transportation and insurance.
In the case of sale with the .BOF shipping method, the seller completes his duty of delivering the goods by passing the goods through the ship’s railing, by fulfilling the points mentioned above, and delivering the goods on the ship’s supply, and has no duty regarding the shipping and insurance contract. He has entered into a contract to transport the goods and he has sent the ship for loading at his own expense.
In the RFC (freight cost) method, unlike the BOF shipping method, the seller not only has to deliver the goods on the deck of the ship as stated, but also at his own expense, the contract of carriage to the specified port of destination with the usual conditions and on the route Usually concludes with a type of seagoing ship normally used to carry the goods subject to the contract.
Regarding the .BOF shipping method, the characteristics of the ship are not listed and the customer is free to send any type of ship he wants to transport the goods that belong to him, but if the ship is not able to load the goods and in this case the damage to the goods or the ship is responsible. It will be. Contrary to the method of shipment to the R.F.C. The ship must move normally and in the normal direction and be suitable for transporting the goods subject to the contract. It should be noted that in this method of transporting R.F.C, the duty of the seller is heavier than the previous type of B.O.F.
In the third type of shipping method (delivery on deck), ie FiC (cost, insurance and freight), the seller’s duties, in addition to what we mentioned in general, is to conclude a shipping contract, as in the case of the B.O.F (FOB) method, and in addition to that, marine insurance. That is, it must insure the goods against the risks it poses, whether from the suspicion of loss or damage to maritime insurance.
Note the type of insurance (governor) provided by the International Chamber of Commerce, but it is not boring to repeat it.
In the FiC transportation method, the seller enters into an insurance contract with the insurers or a well-known insurance company at his own expense. The amount is the minimum insurance coverage (conditions of the London Insurance Institute) unless otherwise agreed in the contract. The coverage period is after the start of the voyage until the arrival of the goods at the destination port. This type of insurance is mandatory and the cost is borne by the seller. However, if the customer requests, the seller insures the goods at the expense of the customer against risks outside the scope of marine insurance, such as wars, strikes, riots and riots.
In the open FiC shipping method, the seller’s duty is heavier than the previous two methods, and in addition to concluding a shipping contract at his own expense, as in the shipping method, he must insure the goods against risks. So the limits of the seller’s duties in the method
This reduction in the liability of the buyer and the increase in the liability of the seller in the methods (delivery at the port of destination) also continue.
B – Delivery in the destination port
In two types of shipping, delivery is done by sea in the port of destination.
1- Delivery from ship pihs xE derevileC “SED
(Delivery from the ship) means that the duty of the seller in the case of shipment of goods ends when the goods are provided to the customer on the deck of the ship before clearance for entry into the designated destination.
The seller is obliged to provide the goods in accordance with the contract of sale, licenses, licenses, export formalities and pay the necessary costs until delivery and with shipping documents or equivalent electronic messages after inspection, packaging and marking on the specified date. And deliver the specified deadline on the deck of the ship. In this type of transportation method, the contract of transportation is concluded by and at the cost of the seller. Delivery conditions are such that it is possible to transfer goods from the ship by unloading equipment. After the departure of the ship, the seller must inform the customer of the approximate time of arrival of the ship.
What distinguishes this method of transportation from the previous three methods of sea transportation is the moment of delivery of the goods, where the moment of crossing the ship’s railing was in the port of origin, and here the deck of the ship before clearance in the port of destination
In this type of shipping method, the seller is not responsible for insurance and if the customer wishes, he can insure the goods, otherwise he must accept the possible risks.
Delivery at QED dock “xE dereviliD”
It means (delivery at the wharf) means that the seller must clear the goods at the wharf (reloading) of the port of destination designated for entry and provide them to the buyer. In the contract of sale, which cites the delivery of the goods to the place of arrival. ytud, in the same way it is possible to exempt the seller from paying other fees.The VAT is often the subject of discussion and in case of exemption of the seller from paying it the phrase yauQ xE derevileD dia [nU TAV is used.
The difference between this method of transportation (delivery at the wharf) and the previous method (delivery by ship), as observed, is at the point of delivery of the goods, which entails an additional cost for the seller.
Therefore, in the shipping method, the minimum responsibility of the seller is in the SAF method (delivery on the ship) in the port of origin and the maximum is in the QED (delivery at the wharf) of the destination port.
Conclusion – The methods of transporting goods in international trade are logically organized by the International Chamber of Commerce. In a way that, in terms that are applicable to different types of transportation (land, air, rail, sea, and combined) and in terms specific to shipping, the heavier we go from the point of delivery of goods from origin to destination, the heavier the seller’s obligations and Customer commitments become lighter.
In the term movement from the origin, which is at the top of each group of applicable terms in different types of shipping and special shipping terms, the obligations of the seller and the customer are almost the same.
In the WXE method, the seller’s obligation is to deliver the goods to his factory or workplace, just as in the SAF sea freight method, the seller delivers the goods by ship in his own country.
In the two terms of arrival at the destination, which are at the end of each of the two groups of terms that are applicable to different types of shipping and terms for shipping, the obligations of the customer and the seller are the same.
In the method of transporting goods by POD, the goods are delivered to the customer at the specified location in the country, and in the same way, in the pihs xE method of sea transport, the goods are delivered outside the ship after shipment to the destination.
In addition to this internal logical order, the rules of Incoterms are also economically regulated in accordance with the rules of supply and demand of goods.
The higher the demand for goods and the lower the supply, the closer the choice of the term to transport the goods will be to the origin of the movement. To meet your needs. Conversely, the lower the demand for goods and the greater the supply, the customer’s lack of need for goods and the need for the seller to sell will cause the seller to be willing to accept shipping costs, risks, rent and other formal and informal costs and hence the term Will be closer to the destination.