Get to know about terms used in Japanese used car shipment: Japanese vehicles are known across the world for their reliability, quality, longevity, safety. Japanese automobile industry started its journey with the launch of new small cars and eventually became of the world’s top automobile industry. The main focus of Japanese makers is always towards customer’s satisfaction. Like new vehicles, used vehicles from Japan are also popular among buyers across the world. People are willing to buy a used vehicle as even though the vehicle is used. But still its overall condition is excellent and are available at practical prices. These vehicles are popular for less engine trouble and their superb quality.
Before buying a used vehicle of your choice from Japan. It is important for an importer to know about the terms related to shipping industry. Used vehicle importer should ask for Performa Invoice before placing any order or sending payment to know each and every thing about terms and condition of payment and shipment. To help out our readers, here are the terms which are used commonly for shipment of used car from Japan.
FOB (Free On Board):
F.O.B means “Freight on Board” or “Free on Board” with similar but distinct implications. It’s the all up cost of the used vehicle to the point where it is put on board ship in Japan. FOB Included, vehicle purchase cost or price, auction fee, transport & handling up to port of origin within Japan. De-registration and document processing fees and the export agents fee.
FOB specifies which party (buyer or seller) pays for which shipment and loading costs. And/or where responsibility for the goods is transferred. The last distinction is important for determining liability for goods lost or damaged in transit from the seller to the buyer.
CFR or C&F (Cost and Freight):
CFR or C&F stands for cost and freight and it is a pricing term in which the exporter/supplier pays for cost and freight. In another word, the cost of freight is also included in the stated vehicle FOB price of the used vehicle. The CFR term requires the seller to clear the used car for export to buyer.
This pricing term indicates that the cost of the goods. Including all transportation/freight insurance costs from the exporter’s yard to the port of departure, as well as the costs of loading the vessel in the quoted price.
A Term of Sale where the seller pays the costs and freight necessary to bring the used car to the named port of destination. Terms of Sale but the risk of loss of or damage to the goods. As (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel. It is transferred from the exporter to the buyer when the used vehicle to the port of shipment.
CIF (Cost, Insurance and Freight):
CIF Price Includes the FOB (Vehicle Price) + Shipping freight + Marine Insurance Cost”. A trade term requiring the exporter to arrange for the carriage of used vehicle by sea to a port of destination. A Term of Sale where the exporter has the same obligations as under the CFR but also has to procure marine insurance against the buyer’s risk of loss or damage to the vehicle during the carriage. Usually marine insurance cost is 1% of total of cost of vehicle and freight cost.”
Marine Insurance covers the loss or damage of ships, cargo, terminals. And any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.
Japanese vehicles are known across the world for their reliability, quality, longevity, safety. Like new vehicles, used vehicles from Japan are also popular among buyers across the world. Before buying a used vehicle of your choice from Japan. It is important for an importer to know about the terms related to shipping industry. Used vehicle importer should ask for Performa Invoice before placing any order or sending payment to know each. And every thing about terms and condition of payment and shipment.