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SHIPPING TERMS-DELIVERY OPTIONS

Delivery of goods is the responsibility of manufacturing/supplying partner. There are several types of deliveries; selection of terms of deliveries depends upon negotiation between partners. These terms define responsibility on both ends; however, supplier’s responsibility ends only with the safe delivery of goods to the end consumer.

Remove worries of selling partner regarding production and delivery, to let him/her focus on marketing and selling.

Below are the most common shipping terms and the involved costs. We offer all these.

Responsibility of the manufacturer is the least in the 1st type (ex-work) and increases gradually. Increased responsibility is underlined in detail of each type.

1-Ex work: In factory

Product cost

2-FOB-Free on board: Delivery to shipping port/airport

Product cost +Cost of transport to port/airport + Port Expenses +Custom clearance cost

3-CNF-Cost and Freight: Delivery to destination port/Airport

Product cost +Cost of transport to port/airport + Port Expenses + Custom clearance cost +transport cost (air or ship) to destination port/airport

4-CIF-Cost Insurance Freight: Delivery to destination port

Product cost +Cost of transport to port/airport+ Port Expenses + Custom clearance cost +transport cost (air or ship) to destination port/airport + Insurance

5-DDU: Delivery Duty unpaid: Door delivery to buyer address

Product cost +Cost of transport to port/airport+ Port Expenses + Custom clearance cost +transport cost (air or ship) to destination port/airport + destination custom clearance and delivery cost to address

6-DDP: Delivery Duty Paid: Door delivery to buyer address

7-Door To Door Delivery through courier: for small and urgent shipments

Includes all expenses except import duty and VAT

For entrepreneurs, who are FBA merchants or planning to do FBA, we offer all expenses paid delivery to Amazon Warehouses in USA and Europe. We follow Amazon’s instruction regarding packaging and delivery.

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Shipping Costs-Fixed & Variables

Cost of transport from factory to Port/Airport	Variable	Depends upon Volume & Weight. In case of Full container, these remain almost same. For LCL, Check prices from trucking goods transport, Bus transport, Railway Carriage.
Port Expenses	Variable	Some expenses are fixed however the largest expense, Wharfage, depends upon volume. Check previous invoice and ask custom clearing agent for a quote.
Custom Clearance	Fix	Different for Air and Sea Shipments. Check previous invoice and ask custom clearing agent for a quote.
Transport Cost to destination port/Airport	Variable	Depends upon Volume and weight. Airlines use different slabs for different weight categories. E.g. 100+, 500+ Ask forwarder for a quote
Destination Port expenses + custom clearance cost	Variable	Depends upon Volume, weight and numbers of HS codes. Ask agent for a quote
Delivery from Destination port to the client’s Address	Variable	Depends upon Volume, weight. Ask Custom clearing agent for a quote
Import Duty	Variable	Depends upon Value. Check Duty rates, however, ask agent for it
Door to Door Delivery	Variable	Depends upon total volume and weight, they have different slabs for quantities e.g. 10+, 25+, 100+, 500+. Ask your vendor, DHL or FedEx for a quote

Parties involved in shipping and their responsibilities

Transporter: Responsible for inland transport only. You must provide them CRO(Container Release Order) or LP(Loading Program) and Gate Pass.

Customs Clearing Agent: Receive the goods from Transporter at port/airport, get it custom cleared, and hand it over to forwarder. You must provide them Invoice, PL, VGM, Approved Form E

Forwarder: Arrange a sea or air transport. Received custom cleared goods and hand over to shipping line-Airline. Issue BL or AWB. You must provide them Packing List, BL Draft