WHAT IS SHIPMENT AND ITS REGULATIONS IN IMPORT AND EXPORT

The term “shipment” frequently appears in international trade contracts and is a crucial clause that exporters and importers need to understand thoroughly. So, what is shipment? How is the shipment clause regulated in foreign trade contracts? Let Smart Link guide you through the answers below!

1. What is Shipment?

Shipment refers to the delivery of goods to transportation services for transit, including road, sea, air, or rail transport.

2. Shipment Clause Regulations in Foreign Trade Contracts

Shipment regulations in import and export – Smart Link Logistics

Key points of the shipment clause

The shipment clause encompasses several critical aspects that both exporters and importers must negotiate, including:

Delivery time (combined with constraints on timing and payment methods).
Delivery location.
Delivery method (partial or single shipment, transshipment or direct shipment, full container or less than container load).
Notifications between the parties during the transportation process.

How is the delivery time agreed upon?

The delivery time in a foreign trade contract is mutually agreed upon by both parties.

How is the delivery location specified?

If the shipment is from port to port, the delivery location will be specified as:

Name of the port of loading (POL = Port of Loading).
Name of the port of discharge (POD = Port of Discharging).

If the shipment is from airport to airport, the delivery location will be specified as:

Name of the loading airport.
Name of the discharging airport.

For shipments under EXW (Ex Works) or DDP (Delivered Duty Paid) terms, the delivery location will be specified as:

Place of receipt (Pick-up place).
Name of the port of loading (POL).
Name of the port of discharge (POD).
Final destination.

3. Notifications between Parties

Before shipping, the seller will notify the buyer with instructions or details about the time/location for the vessel to receive the goods. After shipping, the seller must inform the buyer about the shipment’s status and outcome. Additionally, many importers require advance notice before the vessel arrives at the discharge port.

The above information clarifies what shipment is and the associated regulations. We hope this information provides you with valuable insights into the shipment clause in foreign trade contracts. If you need assistance with certifications, logistics documents, or import-export processes, choose Smart Link Logistics.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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