Is it possible to use incoterms for air freight?
11 Incoterms are included in the latest official publication by the International Chamber of Commerce.Four are meant for waterway transport.Air freight can be used with the other seven.
Before the 2020 publication, the Incoterms rules were categorized according to their initial letter, for example, FCA was part of the F-group.
The distinction between maritime and intermodal Incoterms has been emphasized by theICC.
Who hasn't received a quote saying that their prices are by air?This is incorrect, as the maritime Incoterm is not used for air freight.
If you want to ship goods by air, you should use one of the seven Incoterms.There is a synthesis of what they are and what you can do with them if you are shipping by air in the first part of the Incoterms 2020 publication.
Ex Works is the only Incoterm where delivery occurs away from a port, airport, train station, or any place of long-distance departure.It is up to the buyer to decide the most appropriate mode of transportation after the goods have been collected.
Delivery can take place anywhere at origin with the Free Carrier.It can be an airport or a port.
If you are shipping by airway, you can bring the goods with you to the airport if you set the place of delivery as the departure airport or the seller's premises.
The C- Group Incoterms rule entails all the quirks of that group.The seller must arrange for transportation to the destination if the delivery is to be at the origin.This can be anywhere in the buyer's country.
After the goods are loaded on the truck, they are delivered to the seller.The seller has to use any means of transport, including air freight, after that.
The difference between the two is that the seller is required to provide insurance for the goods.According to clause A of the Institute Cargo Clauses, the insurance is set.
The D- Group has three Incoterms.Delivery can take place anywhere at the destination.In the buyer's country, the goods are not unloaded and not cleared for import.
The buyer must pay taxes and duties at the airport where the goods have arrived, even if you have to arrange for transportation.
The substitute was delivered at the terminal.The goods were unloaded but not cleared for import at the port, airport, train or truck station.
The place of delivery can be anywhere, with the goods still unloaded but not cleared for import.
The heaviest burden on the seller is delivered duty paid.The goods are unloaded and cleared for import at the destination.
If you ship goods by airway to Germany, you will have to pay import duties, arrange for road transport in Germany up to the agreed place of delivery, and place the goods at the buyer's disposal.
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