“Free on Board” rule means that the seller’s goods are delivered in the specified loading port, on the ship selected by the buyer or by supply the goods that are delivered this way. This rule may not be suitable for the circumstances where the seller delivers the goods to a carrier before being loaded to the ship. For example, it is natural to be delivered this way when the goods are in containers. In such cases, FCA rule must be used.
Characteristics of the delivery type: In this type of delivery, seller conducts the loading on the ship on the specified date and in the specified location. All kinds of damages, losses, and expenses that might occur after the goods pass the rails of the ship are in the responsibility of the buyer. Seller prepares the entire document required for the export and delivers after completing the customs clearances of the goods.
Seller’s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. conducts the loading on the ship provided by the buyer on the specified date and in the specified location. Seller does not have an obligation against buyer for entering into a transport agreement and insurance agreement. Prepares the required documents it will be using in the Buyer’s country and completes the customs clearances. Notifies the buyer regarding the fact that the goods are embarked. Prepares the arranged transport document required other documents buyer will be using in its country and sends to the buyer in accordance with the payment types. All kinds of damages, losses, and expenses that might occur until the goods pass the rails of the ship are in the responsibility of the seller. As applicable, it must pay expenses for the required customs clearance transactions and all the duties, taxes, and other charges required for export.
Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. It pays the fee of the freight by entering into an agreement with the transport agency. All kinds of damages, losses, and expenses that might occur after the goods pass the rails of the ship are in the responsibility of the buyer. As applicable, it must pay all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances and the expenses of the transit of the goods in any country. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading. “Free Toward Ship” rule expresses that seller leaves the goods at a designated loading port toward the ship selected by the buyer (for example on a wharf or boat) and conducts the delivery. In the events where the goods are in containers, it is natural that the seller delivers the goods not in the direction of the ship but in a terminal and to a carrier. In such cases, this rule is not appropriate and the FCA rule must be used.
Characteristics of the delivery type: In this type of delivery, seller is obliged to bring the goods beside the ship. Goods are delivered by bringing to the loading spot if the ship is anchored at the wharf or by taking them to the ship on boats if the ship is anchored wide at sea. As of the delivery, loss and damages of the goods belongs to the buyer. As of this moment, all the expenses and freight regarding the goods are borne by the buyer. In this type of delivery, all the documents of export are prepared by the buyer. Customs clearances are also conducted by the buyer. If the buyer firm cannot act in this country as an exporter, this type of delivery must not be selected.
Seller’s Obligations: Seller prepares the goods pursuant to the agreement terms and conditions. In the event that the buyer so-
Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Prepares respective documents required for export and import and pays all the customs expenses. Agrees with the transport agency and notifies the place of arrival of the ship to the loading port. Receives the goods that are kept ready for the loading order. As of this moment, all the expenses and risk regarding the goods pass to the buyer. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.