Professional Documents
Culture Documents
Documentation
Main Clauses-International Commercial
contract
Product Specifications, Quality and Quantity
Description
Specifications
Quantity
Quantity Tolerances
Test Certification
Size-wise Breakup of Quantity
Chargeable Weight (i.e. Net Weight)
Penalty and Bonus
Packing
Marking
Main Clauses-International Commercial
contract
Price
– Currency
– Unit Price
– Basis of Quotation (FOB, CIF etc.)
– Cost Distribution and Delivery
Terms of Payment
– Letter of credit
Right of Transfer
– Buyer/Seller Right to Assign/Transfer Contract (Generally not
agreed upon, except to the successors)
Origin Terms
EXW (Ex-Works)
FREE ON BOARD(FOB)
“Free on Board” means that the seller
delivers when the goods pass the ship’s rail at
the named port of shipment. This means that
the buyer has to bear all costs and risks of loss
or damage to the goods from that point.
The FOB term requires the seller to clear
the goods for export. This term can be used
only for sea or inland water way transport.
INCOTERMS
6. BL and other
8.BL and other docs docs
for getting of goods 5. Goods
handed
2. LC Info over to
carrier &
10. Payment Bill of
Lading to
7.BL and other docs for payment
Buyer’s bank Seller’s bank Seller
3. Opening of LC
Carrier
9.BL and other docs for receiving of goods
Types of LC
• Revocable LC- Terms and conditions are
changeable. Changes are made by the
buyer in consent with the seller.
• Irrevocable LC- No changes can be made