When selling your goods to a distance, it\u2019s crucial to set the transfer or delivery terms. It\u2019s not so much for understanding who has the rewards from the ownership but the risks. If something were to happen with the goods while in transfer, someone has to bear the costs.\u00a0<\/p>\n
If you\u2019ve insured the shipment, it\u2019s not an argument that you don\u2019t bear any risks. If anything, you\u2019ve assumed the risks as yours and as such, if you\u2019re the seller, you shouldn\u2019t recognize the sale until the goods are delivered to the customer and the risks of ownership have transferred to the customer. Insurance is only a mitigation of the risk, not transferring the risks.<\/p>\n
Some examples of delivery terms often used:<\/p>\n
o\u00a0\u00a0\u00a0\u00a0EXW or Ex Works \u2013 the buyer bears all costs and risks involved in taking the goods from the seller\u2019s premises to the desired destination. The seller\u2019s obligation is to make the goods available at this premises (risks are transferred when giving away goods at your own premise);<\/p>\n
o\u00a0\u00a0\u00a0\u00a0FCA or Free Carrier \u2013 the seller\u2019s obligation is to hand over the goods, cleared for export, into the charge of the carrier named by the buyer at the name place or point (risks are transferred when goods are on the carrier);<\/p>\n
o\u00a0\u00a0\u00a0\u00a0CPT or Carriage Paid To \u2013 the seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to the goods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer.<\/p>\n
o\u00a0\u00a0\u00a0\u00a0CIP\u00a0or Carriage and Insurance Paid To \u2013 the seller has the same obligations as under CPT, but has the responsibility of obtaining insurance against the buyer\u2019s risk of loss or damage of goods during the carriage.<\/p>\n
Do take the time and agree with your customers the terms most suitable for each party and to the circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"
When selling your goods to a distance, it\u2019s crucial to set the transfer or delivery terms. It\u2019s not so much for understanding who has the rewards from the ownership but the risks. If something were to happen with the goods while in transfer, someone has to bear the costs.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-4982","post","type-post","status-publish","format-standard","hentry","category-2-8-revenue-and-receivables"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4982"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4982\/revisions"}],"predecessor-version":[{"id":4983,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4982\/revisions\/4983"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}