| Terminology |
| |
| DDU Delivered Duty Unpaid |
| TCI pays for goods to reach client warehouse and
the buyer pays the import duty with their VAT. |
| |
| CIF Cost, Insurance and Freight |
Cost of goods plus insurance and freight paid
by TCI, all other charges from point of ship arrival
to client warehouse are for client’s account.
If a transferable Letter of Credit is used TCI will
buy the insurance outside of an L/C to ensure that
TCI choose the insurance company and only TCI and
the client may claim should the need arise.
This is not the case if insurance is kept as an
L/C term |
| |
| CFR Cost and Freight |
| Same as for CIF Cost, except that the buyer also
covers the cost of insurance. |
| |
| FOB Free on Board |
| All costs up to delivery over the ship’s
rail at the named port of shipment. TCI employs
this term with its factory. |
| |
