INFOS - Esalco Lojistik

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With the increase in the world population, globalization and technological developments, the volume of international trade has grown and increased in importance compared to previous years. This situation has increased the importance of the rules for international trade, which should already be clear. It is essential to clarify issues such as where the goods considered within the scope of international trade will be delivered, who will bear the costs arising from this trade or how they will be shared between the parties, how the insurance and transportation contracts of the goods in question in the commercial activity will be made, before the parties involved in the trade.

In order to clearly outline these issues without causing any controversy, the ICC (International Chamber of Commerce) uses an internationally recognized list of rules, called INCOTERMS (International Commercial Terms), which sets out the obligations between the buyer and seller in commercial activities. First published by the ICC in 1936, INCOTERMS was last updated on January 1, 2020. The INCOTERMS provides us with the rules to be followed in international trade and provides guidance in the event of an impasse, but it is not an international law and compliance with the rules does not constitute a legal obligation. Of course, in all commercial activities, it is possible for the parties to the trade to regulate the commercial rules among themselves, independent of the ICC. However, the main purpose of the ICC is to provide a solid basis that can be referred to in banking transactions or mutually signed contracts needed in international trade. In this way, it is also to facilitate the resolution of disputes that may arise.

FCA(Free Carrier) Terms

According to INCOTERMS published on January 1, 2020, there are 11 different modes of delivery defined in international trade. These modes of delivery are divided into rules covering all modes of transportation and rules covering only maritime and in-water transportation.

The rules and brief explanations covering all types of transportation are as follows:

  1. EXW (Ex Works): Delivery in a commercial enterprise
  2. FCA (Free Carrier): Delivery to the carrier at the designated place
  3. CPT (Carriage Paid To): Delivery with transportation fee paid
  4. CIP (Carriage and Insurance Paid To): Delivery with transportation and insurance paid
  5. DDP (Delivered Duty Paid): Delivery with customs duties paid
  6. DAP (Delivered at Place): Delivery at the designated point
  7. DAT (Delivered at Terminal): Delivery at the terminal

The rules used in maritime transportation and inland waterway and their brief explanations are as follows:

  1. FAS (Free Alongside Ship): Delivery alongside the ship
  2. FOB (Free on Board): Delivery on board the ship
  3. CFR (Cost and Freight): Freight paid delivery
  4. CIF (Cost, Insurance, Freight): Delivery with insurance, expenses and freight paid.

fca terms

The part of INCOTERMS rules that is the subject of this article is Free Carrier, abbreviated as FCA. In the Free Carrier form of delivery, the seller, who is the exporter, completes all customs procedures and delivers the goods to the first carrier at the predetermined date and place, thereby fulfilling its part of the responsibility. Upon delivery, all responsibility and risk for the goods is transferred to the buyer. From this moment on, all costs related to the goods, insurance, agency and freight expenses are now the responsibility of the buyer.

Basic Responsibilities of the Seller in FCA: The seller prepares the goods according to the terms of the mutually signed contract, issues all documents to be requested in the country where it is located and pays the customs costs of the goods. The Seller delivers the ready goods on the predetermined date to the predetermined point. Until the delivery takes place, all costs and all possible risks belong to the seller. After delivery, all responsibility passes to the buyer.

Basic Responsibilities of the Buyer in FCA: The buyer pays the full price of the goods in accordance with the contract signed with the seller. It obtains all the necessary permits and collects all the documents required for importation and pays the customs duties and other costs to which the goods are subject. By making an agreement with the logistics company, it covers the freight cost of the goods. Then, it receives the goods at the predetermined place and date in accordance with the contract. In this way, it takes over all responsibility and risks related to the goods from the seller.

After this stage, the buyer makes an agreement with a logistics company for the transportation of its goods. Considering the type of goods, the destination and other factors, the logistics planning of the goods is carried out using one or more of the following logistics services: air transportation, road transportation, maritime transportation, river or railway logistics services. The buyer company makes an agreement with a logistics company that can manage this entire logistics process.

Main Responsibilities of the Logistics Company in FCA: In the FCA mode of delivery, the responsibility of the company that will manage the logistics processes starts in a limited way with the receipt of the goods from the designated location. There may be a contract between the logistics management company and the seller. After the logistics company receives the goods from the designated location, it collects all costs, insurance, agency fees and freight expenses from the buyer.


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The importance of international logistics in the globalizing world is increasing day by day. Both countries and multinational companies see the importance of investing in logistics strategies more and more every day.


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CLASS 1
EXPLOSIVES

They should be stacked on the ship away from the personnel area and the boat hull, just below the hatch covers.
Substances included in this class:
Black powder, firecrackers, smoke bombs, ammunition, dynamite, etc.

Denizyolu parsiyel servis

CLASS 2
GASES 

SUBCLASS 2.1
FLAMMABLE GAS
 Must be stacked away from any heat source and all personnel areas.
Substances included in this class:
Acetylene, ethane, ethylene, methane, hydrogen, lighter gas, etc.

Gümrüklü depolama hizmetleri

CLASS 2.2
TOXIC GASES :

They should be stacked away from all kinds of heat sources, the staff area and food.
Substances included in this class:
Ammonia, fluorine, prussic acid, chlorite, carbon monoxide, etc.

Gümrüklü depolama hizmetleri

CLASS 2.3
NON-FLAMMABLE COMPRESSED GAS :

Must be stored in a cool, well-ventilated place on or under the deck. The tubes filled with these gases expand when they receive heat, which is very dangerous because it causes explosions.
Substances included in this class:
Argon, helium, carbon dioxide, air gas, oxygen, etc.

Gümrüklü depolama hizmetleri

CLASS 3
FLAMMABLE LIQUID

They are divided into 3 subgroups according to the combustion point of the evaporated gas released in the event of heating.
SUBCLASS 3.1
FUEL: The combustion point is less than 18O C. It must always be stacked on deck.
SUBCLASS 3.2
DIESEL: The combustion point is between 18OC and 23OC. It should be stacked on or under the bridge.
SUBCLASS 3.3
DIESEL: The combustion point is between 23OC and 61OC. It should be stacked under the bridge.

Gümrüksüz depolama hizmetleri

CLASS 4
GASES

SUBCLASS 4.1
FLAMMABLE SOLIDS:
Must be stacked on deck or under deck. They must be kept away from the accommodation. Substances included in this class: Aluminum powder, celluloid, naphthalene, red phosphorus, films, naphtha oil, dry fibers, etc.

Gümrüksüz depolama hizmetleri

SUBCLASS 4.2
SUBSTANCES LIABLE TO SPONTANEOUS COMBUSTION :
 it should be stacked in well-ventilated areas and the batteries should be shaped to allow air circulation.
Substances included in this class:
Copra, fish meal, dried grass, charcoal, etc.

Gümrüksüz depolama hizmetleri

SUBCLASS 4.3
SUBSTANCES WHICH, IN CONTACT WITH WATER, EMMIT FLAMMABLE GASES:when they come into contact with water these solids give off flammable gases. They should be kept in dry, well-ventilated places and contact with water should be avoided at all costs.
Substances included in this class:
Alkali alloys, barium, carbide, ferrosilicon, natrium, magnesium, etc.

Gümrüksüz depolama hizmetleri

CLASS 5
OXIDIZING SUBSTANCES AND ORGANIC PEROXIDES
SUBCLASS 5.1
OXIDIZING SUBSTANCES:
Substances in this class create an environment that facilitates combustion by releasing oxygen. Due to these properties, they should not be stacked next to flammable materials.
Substances included in this class:
Nitrate, artificial fertilizer, ammonium sulfate, barium chlorate, etc.

Gümrüksüz depolama hizmetleri

SUBCLASS 5.2
ORGANIC PEROXIDES:
Substances included in this class may be flammable or explosive. They must be placed in a dry and cool place, covered on the deck.
Substances included in this class:
All peroxides are included in this class.

Proje Taşımacılığı

CLASS 6
TOXIC SUBSTANCES
SUBCLASS 6.1
TOXIC SUBSTANCES
Toxic substances can enter the human body orally and be fatal. For this reason, they should be stacked away from food, drink, living quarters and moisture-releasing substances such as tobacco.
Substances included in this class:
Arsenic, aniline, barium oxide, phenol, nicotine, lead, cyanide, mercury products, etc.

Proje Taşımacılığı

SUBCLASS 6.2
INFECTIOUS SUBSTANCES :
These substances cause disease because they contain microbes. They should be stacked away from food, drink and living places. The nearest health authority should be informed in dangerous situations. Our company often prefers the transport of live animals.
Substances included in this class:
Bones, bone oil, compressed meat scraps, animal skin, blood powder, etc.

Proje Taşımacılığı

CLASS 7
RADIOACTIVE MATERIAL
These substances are transported in special containers. The containers must be absolutely intact. They should preferably be stacked on deck, away from staff, food, unwashed films, medicines and chemicals. They are divided into 3 groups in terms of degrees of activity.

Reefer konteyner taşımacılığı


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incoterms 2010 rules

Incoterms 2010 in Turkish language

The seventh revised version of the Incoterms clauses of the International Chamber of Commerce was published in late September. This revised version takes into account new applications in commerce and transport. Incoterms regulate the distribution of transport costs, risk transfers and details of activities in national and international sales transactions. The obligations of buyers and sellers are clearly described for each clause with a 10-point diagram, and illustrated explanations are added to facilitate the selection of the right Incoterm. Application notes were found before each clause and the basic content was summarized.

Incoterms are not a law, but an agreement must be concluded between the buyer and the seller in addition to the sales contract. It comes into force if it is fully agreed between the buyer and the seller. The legal and special provisions of certain contracts between the parties prevail over the Incoterms.

DSLV commentary; under certain conditions (ex: EXW), export customs clearance procedures, obtaining an export license, etc. the buyer must provide. However, as a general rule, in accordance with customs and foreign trade laws, sellers and exporters are responsible for this. In this regard, the buyer’s obligation does not apply.

The agreement on an Incoterms clause should be as follows:

3-letter abbreviation / clear description of the site / Incoterm status (no date on which the old Incoterms were repealed) Example: FCA Bonn, Factory II, Address Example 7, ICC Incoterms 2010

An overview of the changes:

In the Incoterms 2010 (revised), the number of conditions increased from 13 to 11.

New clauses

Four conditions have been repealed, but 2 new clauses have been created: DAP (Delivered At Place-Delivery) and DAT (Delivered At Terminal-Delivery) have replaced DAF, DES, DEQ and DDU and can be applied in any mode of transport.

The DAT clause means that the goods are delivered to the buyer at destination to be unloaded by the means of transport, replacing the previous DEQ clause and, unlike DEQ, multimodal (for multi-vehicle) can be used.

The DAP clause means that the goods are delivered to the buyer at a specific time to be unloaded by the transport vehicle. DAP replaces the previous DAF, DES and DDU.

In both cases, the seller bears the costs of transporting the goods to the designated place / the risk of damage linked to the terminal.

New clause structure

The innovations in the 2010 Incoterms include the segmentation of seven multimodals, which can be applied to all modes of transport, and four clauses which can only be applied to maritime transport.

Clauses concerning all modes of transport:

EXW – Ex Works

FCA – Free Carrier. The exporter clears the goods for export and delivers them to the transporter

CPT – Carriage Paid To

CIP – Cost Insurance and Freight

DAT – Delivered at Terminal

DAP – Delivered at Place

DDP – Delivered Duty Paid

Sea transport clauses:

FAS – Free Alongside Ship – Free delivery alongside the ship

FOB – Free On Board- Free delivery on board

CFR – Cost and Freight – Cost and Freight Paid

CIF – Cost, Insurance and Freight – Cost, insurance and freight paid

In terms of risk transfer, FOB, CFR and CIF have also been modernized. Provided that the ship has not passed the ship’s rail, the seller was responsible for all damage and loss of the goods. The transfer of risk with the new Incoterms 2010 takes place only after the goods have been correctly loaded onto the ship.

Security enters the Incoterms

Preventing terrorist attacks in the international transport chain has long been a central issue. Incoterms 2010, taking into account current events, adding additional specifications to certain clauses (A2 / B2 or A10 / B10 at certain points), to determine which party will bear the costs related to security measures.

Insurance

Only the terms CIF and CIP stipulate that the seller must insure the goods. The seller must provide an insurance policy against losses and losses that the buyer will suffer during the transport of the goods. Under the CIF and CIP conditions, the buyer must know that the seller is obliged to take out multi-risk insurance with minimum cover. The reason is that minimal coverage is possible, especially for bulk goods. The customer must comply with more comprehensive insurance regulations.


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Consolidation has become compulsory with the increase in the volume of trade and global commercial mobility. Options for partial and full loading of ocean freight are offered by international logistics services, for situations where the load cannot fill an entire container.

Full container load (FCL): If the load to be transported is large enough, a full load (FCL) is carried out. In this case, a contract can be concluded with the owner company for specific periods. When FCL freight arrives at the port, the freight owner company can transfer the container to its warehouse or use the bonded and duty-free storage services offered by Esalco.

Partial ocean freight service (LCL- Less than Container Load): If the load does not fill a container, partial loading (LCL) is carried out; the load of two or more companies is in the same container. When the container reaches the port, customs clearance is carried out by the buyers.

FCL / LCL: The load of two or more exporters is loaded into a container belonging to a single importer.

LCL / FCL: The load of a single exporter is loaded into a container belonging to several importers.

FCL / FCL: This is the situation where the full load of the container is an exporter and an importer.

LCL / LCL: This is the situation where the partial load loaded in the container is an exporter and an importer.


Esalco Logo

As Esalco Logistics, since the beginning of our operations in 2011, our job consists in carrying a product or raw material from one point to another. It may sound simple, but we love the depth behind the simple appearance of logistics. In fact, through each product or raw material that we carry we deliver freedom, time, happiness, technology, well-being, inspiration, colorful discoveries, and the little pleasures of life.

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