‘Incoterms’ are Delivery Terms in the sense that they outline, in detail, what is required to be done by both parties. The handling location is the location that has been chosen to effect the ‘exchange’ of goods, which denotes delivery and the taking thereof.
By applying the ICC Incoterms it is now possible to identify the ‘handling location’, which represents the position and location of your (supplier’s/exporter’s) goods, at the time of the transfer of physical risk to the buyer (importer).
There are nine (9) handling locations (and this may suggest that there are nine Incoterms) however, the need in some cases for additional duties means there are eleven (11) Incoterms.
1. Exporter’s premises, i.e. your own premises
2. Airline, Agent, Haulier or Container Operator premises, i.e. who the Exporter may have been instructed to deliver the goods
3. Port of Export, when the goods are to be transported by sea on a port-port basis
4. Alongside the ocean going vessel, again when the goods are to be transported by sea on a port-port basis
5. Frontier of the Destination Country, when the goods are moved by road or rail
6. Port of Destination, when the goods are being unloaded from the vessel
7. Quay at the Port of Destination, when the goods are to be loaded on the vehicle for delivery to destination
8. Airport or Terminal in the Country of Destination, when the goods are being unloaded by the carrier on arrival in the country
9. Customer’s Premises, on delivery when the goods are being unloaded from the delivering vehicle
If you’d like to learn more about how Incoterms 2010 relate to handling locations in exporting, look out for subsequent blogs on our blog page.
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