Free Essay

Ibm Inco Terms

In: Business and Management

Submitted By ms0128
Words 515
Pages 3
International Business Management
Presented by
Taiyiba Mufti Maria Salman Ahsan Zaidi Ibrahim Tanveer Hina Amjad Sana Nadeem Ali Amer Mahira Anwar Abbasi

We selected as the platform to approach the international supplier, and the product of choice was electrical scooter. We demanded that a quote for a quantity of hundred scooters be provided and freight terms be discussed as well. To demand this quote we did not specifically use any inco-terms, we simply asked them to apprise us of the terms of transaction and freight details (Appendix A). In turn the reply came to us in form of an email with the quote as an attachment. (Appendix B) The following inco-terms were used by the suppliers in the quote.  FOB: Free ON Board The seller pays for the all costs of transportation of goods to the port of shipment and the transfer of goods on board the vessel designated by the buyer.  FCL: Full Container Load It is a term of ocean freight; it suggests that the container used for transportation is exclusively utilized by one importer/ exporter. It can also imply that the supplier has packaged and loaded the goods into a container provided by a forwarder before delivering to the cargo terminal. It does not necessarily mean that the container will be utilized to its maximum capacity.  HQ: High cube container With this type of container you gain the advantage of an added foot as compared to a standard container.  EXW: Ex Works The seller only bears charges up till his own factory, office or storage floor. All risk and costs from that point onwards; including the transportation, shipment, insurance and commission; is borne by the buyer. The only responsibility of the seller is to make sure that the goods are available on the seller’s premises on time.  MOQ1: Minimum Order Quantity The bare minimum amount that has to be requested for the order to be feasible for the supplier to produce or transport. If the quote were to be accepted it would be accepted at the FOB price of USD 150 per piece, which means that the cost of scooter would cover the freight till the load is placed on board the designated vessel in Shenzhen port in China. The buyers, in this case us, would cover the shipping charges and bear all the risk as there is no insurance of the goods.


Mentioned in correspondence email.

Pls find the information of electric scooter below: FOB PRICE :USD150/PC ,

1) Max. load capacity: 150kg 2) Rated speed: 35km/h 3) Type of moto: brushless motor 4) Motor power:500W motor 5) Battery type: sealed lead acid battery 6) Battery: 36V/12Ah 7) Charger: 110v or 220v(optional) 8) Output of charger: DC 43.5v 1.8A 9) Charging time: 4-6 hours 10) Single: 30km 11)Carton size:80*58*81cm 12)N.W.: 46kg 13)G.W.: 48kg 14)Conveyance: Qty/20' FCL: 115pcs Qty/40' FCL: 225pcs Qty/40' HQ: 300pcs 15)Delivery: EXW/ FOB Shenzhen



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