This term represents a specific Incoterm, a globally recognized set of rules defining the responsibilities of sellers and buyers in international trade transactions. Under this agreement, the seller fulfills their obligation to deliver goods when they hand them over to the carrier nominated by the buyer at a named place. This location can be the seller’s premises, a freight forwarder’s warehouse, or another specified point. For instance, a manufacturer in Germany might deliver goods to a trucking company selected by the buyer at the manufacturer’s factory, thus satisfying their delivery obligations under this Incoterm.
Its significance lies in its flexibility and applicability across various modes of transport. It clarifies precisely when the risk and responsibility for the goods transfer from the seller to the buyer, minimizing potential disputes and streamlining the logistics process. Historically, the development of Incoterms, including this particular rule, aimed to standardize international trade practices, fostering clarity and predictability for businesses engaging in cross-border transactions. Using this rule can offer benefits by clearly defining transport responsibilities and cost allocations between parties.
