Explore the importance of Incoterms in international trade and their impact on the European logistics market. Incoterms is an international standard on the rights and obligations of the buyer and seller in the international transportation of goods.
Incoterms, or International Commercial Terms, play a crucial role in defining the responsibilities and liabilities of buyers and sellers in global trade. In the European logistics market, understanding and correctly applying Incoterms is essential for seamless and cost-effective international transactions. These terms, including EXW, FOB, CIF and DAP, govern everything from the point of origin to the final destination of the goods. For example, EXW and FOB give buyers more control over the transportation process, while other terms imply that sellers take charge. Interestingly, CIF prices are often quoted initially, but there is flexibility to offer prices based on different terms. Neele-Vat, with its extensive experience in international logistics, recommends choosing EXW or FOB, allowing maximum control while using our expertise to manage transportation to your specified destination. We will elaborate on each Incoterm and offer valuable insights for navigating the European logistics landscape.
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CPT - Freight paid to (agreed place of destination)
Under the ICC Incoterms® rule Carriage Paid To (CPT), the seller arranges and pays for carriage to the agreed place of destination as named after the 3 letters. The place of delivery and passing of risk is a different place than the place name behind this Incoterms® rule.
Under CPT, the seller has fulfilled its delivery obligations when the goods are handed over to the carrier who comes to pick up the goods. This may be at the seller's premises or another point from which the goods are delivered to the carrier. This is also when the risk passes from seller to buyer.
CPT is a non-maritime delivery condition suitable for all forms of transportation.
Characteristics:
Delivery: the seller delivers by handing over the goods to the carrier (contracted by him).
Transport risk: the risk of damage to or loss of the goods during transport shall be borne by the buyer from the time of handing over to the carrier. Prior to this, the seller shall bear the risk.
Transportation costs: the cost of transportation to the agreed destination shall be borne by the seller. Any subsequent transport is at the buyer's expense. Please note that the transfer of transport costs does not take place at the same time as the transfer of risk for transport damage.
Customs formalities: the seller must take care of the customs formalities arising from the export. For his account are also the related costs, duties and taxes. As a rule, customs formalities and costs related to transit are at the buyer's expense. At the buyer's expense and risk are all customs formalities and related costs, duties and taxes arising from importation into the country of destination.
Transportation insurance: neither party is required to obtain insurance for the goods.
Addition place of delivery: the place of destination must always be added to the delivery condition. In CPT this is indicated by: ... agreed place of destination (... place of destination). Please note that with the C terms, delivery (passing of risk) already takes place at departure. Transport costs are for the seller up to the agreed place of destination.
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