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State and explain the common terms of sale in international trade.

      

State and explain the common terms of sale in international trade.

  

Answers


sharon
a)LOCO or Ex-warehouse or ex- works
Price quoted covers the goods as they are in the exporter’s premises. The importer has to meet the costs of moving the goods from the exporter’s premises to their destination.
b)F.O.R (Free on Rail)
Price quoted includes the expenses for transporting the goods from the seller’s warehouse up to the nearest railway station.
c)D.D (Delivered Docks)
Price quoted includes expenses up to the docks. A dock is a place where ship awaits for cargo.
d)F.A.S (Free Alongside ship)
Price quoted includes transport expenses up to the docks as well as dock charges.
e)F.O.B (free on Board)
The price quoted includes the movement of goods up to when they are in the ship.
f)C & F (Cost and Freight)
The price quoted includes the cost as well as shipping charges.
g)C.I.F. (Cost insurance and Freight)
The price quoted includes the cost of goods, cost of transport and insurance cover against marine risks up to importers port of entry.
h)Loaded
Price quoted includes all expenses up to the port of destination as well as unloading charges.
i)In bond
The price quoted includes the expenses of handling the goods in the bonded warehouse. However, storage charges and customers duties are met by the buyer
j)Franco (free of Expenses)
This includes the cost of goods and any other expense up to the importers premises. This means that the importer does not incur any other expense other than the quoted price.
k)O.N.O (or nearest offer the quoted one.)
This means that the exporter is willing to accept the quoted price or any other nearest to the quoted one.
sharon kalunda answered the question on February 19, 2019 at 11:09


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