Distinction between Domestic and Export price basis terms
Domestic Price Bases | Export Price Bases |
Delivered | DTC |
FIS | CIF |
FOB | CFR |
FOR | FOB |
FOT |
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Track PortZone |
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Ex-Farm |
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NTP |
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Definitions
If you're unsure as to what a price basis terms means or how it is settled, below are the price basis term definitions.
Cost and Freight (CFR)
means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Cost, Insurance and Freight (CIF)
means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.
Delivered Container Terminal (DCT)
means delivered to a nominated container terminal in an appropriately presented shipping container.
Delivered
means delivered to a Site, Port or Delivered Buyer location nominated in the contract, with title passing at the time of transfer.
💡 Note: we have merged the former ‘Delivered Buyer’ and ‘Delivered Site’ price
basis types into a single type called ‘Delivered’
Ex-Farm
means the goods are delivered when loaded upon an appropriately presented form of transportation at the Seller's nominated farm.
Free In-Store (FIS)
means that goods are delivered when delivered “in-store” at an appropriate storage facility with all receival fees and storage fees paid by the Seller up to the date of transfer or conveyance to the Buyer.
Free On Board (FOB)
means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
Free on Truck (FOT)
means that the Seller must Deliver the goods into an appropriately presented truck(s); and Ownership and title passing at the time when the goods are loaded onto the relevant method of transport and accepted by the carrier via the appropriate transport documents.
Free on Rail (FOR)
That the Seller must Deliver the goods into an appropriate presented railcar(s); and Ownership and title passes in accordance with *Rule 14 [Ownership and Passing of Title].
Natural Terminal Port (NTP)
means, in respect of an up-country site, a). Where a port and tributary up-country rail site are connected by rail, the port with the lowest rail Location Differential; b). Where an up-country site has only road access, the port with the lowest Location Differential.
Track PortZone
means a port zone location where the title will transfer at bulk handler sites with the track (port zone) as the NTP. The settlement price will be contracts track price less the gazetted location differential and free of any bulk handler fees and shrinkages applied.
💡Note: A Track Contract can only have one location.
For multi-location Contracts, you will need to create a Contract per new location.
Please note that these definitions are for guidance purposes only and do not form part of your contract terms, for information relating to your specific contract, please refer to your specific contracts terms.
These definitions were sourced from:
Grain Trade Australia: www.graintrade.org.au
International Chamber of Commerce: https://iccwbo.org
*Rule 14.0 OWNERSHIP AND PASSING OF TITLE
Unless otherwise agreed, title to goods as well as risk of loss and/or damage shall remain with the Seller until the goods have been conveyed to the Buyer at the designated point of conveyance:
1) On FOB Origin, Ex-Farm, Ex-Store, or FOB Basing Point contracts; title passes at the © Issue: April 2018 Page 14 time when the goods are loaded onto the relevant method of transport and accepted by the carrier via the appropriate transport document (s).
2) On Delivered or Delivered Basing Point contracts; title passes at the time when goods are constructively placed, or presented for unloading, or otherwise made available at the Buyer’s original destination.
3) On In-Store contracts; title passes at time of transfer and/or filing of documents (if required), unless and to the extent warehouse tariff, warehouse receipt, and/or storage contract assumes the risk of loss and/or damage.