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15 Cards in this Set
- Front
- Back
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6 INCO Terms
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-EXW
-FCA -FAS -FOB -CFR -CIF |
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EXW
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Ex-Works
Named place of delivery Seller exports packaging Buyer is loading at point of origin |
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FCA
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Free Carrier
Main Carriage Unpaid Named at place of delivery Seller pays forwarder fees Buyer handles ocean/air-freight |
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FAS
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Free Alongside Ship
Main Carriage Unpaid Named at port of shipment Seller pays forwarder fees Buyer handles ocean/air-freight |
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FOB
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Free On Board
Main Carriage Unpaid Named at port of shipment Seller pays forwarder fees Buyer handles ocean/air-freight |
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CFR
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Cost & Freight
Main Carriage Paid Named at Port of Destination Seller handles ocean/air-freight Buyer handles charges in foreign port |
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CIF
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Cost of Insurance & Freight
Main carriage paid Named at port of destination seller handles ocean/air freight buyer handles charges in foreign port |
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CPT
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Carriage Paid To
Main carriage paid Named at port of destination seller handles ocean/air freight buyer handles charges in foreign port |
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Why do governments get involved with international trade?
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1. Protect security
2. Protect national business 3. Protect its currency |
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3 basic documents in international shipping
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Certificate of Origin (certifies everything is shipping from correct point of origin)
Commercial Invoice (info on charges for goods/services) Shipper's Export Declaration (complete description of goods, tariffs, value, weight, etc) |
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How do you pay for international transportation?
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Open/Net Account (net 30, 60, or 90 days)
Letter of Credit (buyer is guaranteed by a bank) - revokable or irrevocable |
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8 functions of international freight forwarders
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1. Advising or accepting letters of credit
2. Booking space on carriers 3. Preparing an export declaration 4. Preparing an air waybill or bill of lading 5. Obtaining consular documents 6. Arranging for insurance 7. Preparing and sending shipping notices and documents |
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NVOCC
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Non-vessel-Operating Common Carrier
Freight-forwarder that does not own their own vessel, but sells carrier services |
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What are the two purposes for export packing?
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1. To allow it to run smoothly through customs. Export packing allows proper label of information to be placed on the package
2. Protect the goods during shipment |
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Details of business alliances with steamships
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-steamship companies will collude and set prices for everything going into alliance markets. This is legal in international trade.
-Companies in need of services are unable to negotiate, unless you contract a rate based on extremely high volumes. |
