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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
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+ import duty
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