2. TOPICS
• INCOTERMS – Export Pricing
• International Terms
• Types of Ports
• Types of Containers
• Types of Packaging
• International Payment Terms
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3. INCO TERMS
What is INCOTERMS? – Click
• Importance of INCOTERMS?
- Port of Loading
- Port of Destination
• Types of INCOTERMS
i. Ex Works – Cost Up to Factory
ii. FOB – Free On Board – Cost Up to Port of Loading
(Cost Up to Factory + Local Transportation +
Custom Clearance Charges)
DIEM - 0215
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4. INCO TERMS
i. C&F / CFR / CNF – Cost & Freight – Cost Up to Port of
Destination
(FOB + Shipping Line / Airline Freight Charges Up to
Port of Destination)
ii. CIF – Cost Insurance & Freight –
(C&F + Insurance Charges)
iii. DDU – Delivery Duty Unpaid –
(CIF + Import Clearance Charges at Port of Destination)
iv. DDP – Delivery Duty Paid –
(Door Delivery Charges without Import Duty)
DIEM - 0215
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5. TYPES OF PORTS & TERMS
A. SEA PORT - Click
B. AIR PORT - Click
C. DRY PORT- Click
- CFS – Container Freight Station
- ICD – Inland Container Depot
• Trans-shipment
• Partial Shipment
DIEM - 0215
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6. TYPES OF CONTAINERS
• 20’ft - Size
• 40’ft - Size
• 40’ft HQ - Size
• Drum Containers
• Open Top Containers
• Flat Track Containers
• Referrer Containers
DIEM - 0215
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7. TYPES OF CONTAINERS
What is FCL & LCL?
• How to Calculate Freight Charges in LCL
- Weight or Volume
DIEM - 0215
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8. TYPES OF PACKING
• Primary Packing
• Secondary Packing
• Importance of Marks & Numbers on Boxes
• Preference of Marks & Numbers on Boxes
• Types of Material being used in Packing
- Bag Packing
- Carton / Corrugated box Packing
- Drum Packing
- Wooden Box / Pallets
What is fumigation?
DIEM - 0215
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9. INTERNATIONAL PAYMENT TERMS
• 100% Advance
• Part Advance Balance Against Proof of Export
• CAD - Cash Against Documents / D/P –
Documents Against Payment
- Transactional Cycle under CAD (*)
• D/A: Documents Against Acceptance
- Transactional Cycle under D/A (*)
(Cont…)
DIEM - 0215
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10. INTERNATIONAL PAYMENT TERMS
Risk involved under Above Payment Terms
– Advances – Risk For Importer
– CAD or D/A –Risk For Exporter
DIEM - 0215
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11. INTERNATIONAL PAYMENT TERMS
• Introduction of Letter of Credit (L/C) – Click
Also Known As DOCUMENTRY CREDIT (UCP - DC)
- What is L/C?
- Cycle for Receiving Letter of Credit
- Safety for Exporter & Importer
DIEM - 0215
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12. INTERNATIONAL PAYMENT TERMS
TYPES OF L/C
- Revocable L/C / Irrevocable L/C
- At Sight L/C / It Usance L/C
- Restricted L/C
- Transferable L/C / Back to Back L/C
- Revolving L/C
- Confirmed L/C
DIEM - 0215
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