Costing of Main Carriage under Import and Export trade
We have discussed about Pre carriage under Import Export business. Here we can discuss about Main Carriage.
The movement of goods from load port at seller’s country to the buyer’s country is called main carriage. Under an international trade, the movement of goods from port of loading at exporter’s country to the port of discharge at Importer’s country is defined as Main Carriage.
The risks and costs of main carriage could be either shared fully or partially by exporter or importer depends up on the terms of delivery agreed between them mutually. If the terms of delivery agreed between buyer and seller is on CFR basis under Inco terms 2020, the seller pays the cost of on carriage and the buyer takes care of risk of movement of goods. If CIF agreed terms, the seller undertakes the cost and insurance of main carriage, but again the risks of movement of goods transfers from seller to buyer if their sale contract is under Inco Terms. Although, the risks of main carriage transfers from Exporter to Importer under CFR and CIF terms under Inco Terms, necessary modification on absorbing risks can be made under Sale contract between both, but specifically mentioned.
So the process of movement of goods from the port of loading at Exporter’s country to the port of discharge at Importer’s country is called main carriage.
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