Cost of Pre Carriage under Export and Import
Pre carriage means the movement of goods from Seller’s premises to Port of Loading at Seller’s Country.
Once the goods for sale is ready for export, the seller packs the goods by maintaining quality of packing to reach the goods to final destination place contracted between buyer and seller. The said goods for export is transported to load port as per the agreed terms between exporter and importer. The risks and costs of loading, transportation and other costs if any occurred till loading of cargo to vessel or aircraft are shared partly or fully either seller or buyer as per the Inco terms of delivery mutually contracted between buyer and seller. For example, under ex-works terms, the buyer undertake all pre carriage costs and risks involved to move goods from seller’s place to load the cargo to pre carrier, all local transportation cost and risk to reach the goods at port of loading is undertaken by the buyer. The buyer also arranges to load the goods to Vessel or Aircraft under ex-works.
So the process of movement of goods from Exporter’s premises to load port at his country is called Pre-Carriage of Goods.
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