Category Archives: Shipping


EXW (EX-Works)
One of the simplest and most basic shipment arrangements places the minimum responsibility on the seller with greater responsibility on the buyer. In an EX-Works transaction, goods are basically made available for pickup at the shipper/seller’s factory or warehouse and “delivery” is accomplished when the merchandise is released to the consignee’s freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, export clearance and handling all other paperwork.

FOB (Free On Board)
One of the most commonly used-and misused-terms, FOB means that the shipper/seller uses his freight forwarder to move the merchandise to the port or designated point of origin. Though frequently used to describe inland movement of cargo, FOB specifically refers to ocean or inland waterway transportation of goods. “Delivery” is accomplished when the shipper/seller releases the goods to the buyer’s forwarder. The buyer’s responsibility for insurance and transportation begins at the same moment.

FCA (Free Carrier)
In this type of transaction, the seller is responsible for arranging transportation, but he is acting at the risk and the expense of the buyer. Where in FOB the freight forwarder or carrier is the choice of the buyer, in FCA the seller chooses and works with the freight forwarder or the carrier. “Delivery” is accomplished at a predetermined port or destination point and the buyer is responsible for Insurance.

FAS (Free Alongside Ship)
In these transactions, the buyer bears all the transportation costs and the risk of loss of goods. FAS requires the shipper/seller to clear goods for export, which is a reversal from past practices. Companies selling on these terms will ordinarily use their freight forwarder to clear the goods for export. “Delivery” is accomplished when the goods are turned over to the Buyers Forwarder for insurance and transportation.

CFR (Cost and Freight)
This term formerly known as CNF (C&F) defines two distinct and separate responsibilities-one is dealing with the actual cost of merchandise “C” and the other “F” refers to the freight charges to a predetermined destination point. It is the shipper/seller’s responsibility to get goods from their door to the port of destination. “Delivery” is accomplished at this time. It is the buyer’s responsibility to cover insurance from the port of origin or port of shipment to buyer’s door. Given that the shipper is responsible for transportation, the shipper also chooses the forwarder.

CIF (Cost, Insurance and Freight)
This arrangement similar to CFR, but instead of the buyer insuring the goods for the maritime phase of the voyage, the shipper/seller will insure the merchandise. In this arrangement, the seller usually chooses the forwarder. “Delivery” as above, is accomplished at the port of destination.

CPT (Carriage Paid To)
In CPT transactions the shipper/seller has the same obligations found with CIF, with the addition that the seller has to buy cargo insurance, naming the buyer as the insured while the goods are in transit.

CIP (Carriage and Insurance Paid To)
This term is primarily used for multimodal transport. Because it relies on the carrier’s insurance, the shipper/seller is only required to purchase minimum coverage. When this particular agreement is in force, Freight Forwarders often act in effect, as carriers. The buyer’s insurance is effective when the goods are turned over to the Forwarder.

DAT (Delivered At Terminal)
This term is used for any type of shipments. The shipper/seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DAP (Delivered At Place)
DAP term is used for any type of shipments. The shipper/seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

DDP (Delivered Duty Paid)
DDP term tend to be used in intermodal or courier-type shipments. Whereby, the shipper/seller is responsible for dealing with all the tasks involved in moving goods from the manufacturing plant to the buyer/consignee’s door. It is the shipper/seller’s responsibility to insure the goods and absorb all costs and risks including the payment of duty and fees.


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Buyers and sellers alike benefit from Tax Free Supply Ltd logistic facility and unequaled customer service.
Smooth, trouble-free transaction from the first email to the delivery of the goods is the trademark of trades processed through Tax Free Supply Ltd.
Contact us to benefit from Tax Free Supply expertise.

Process and Procedure

  1. Lead times are 7-30 days but in most cases delivery time is around weeks.  
  2. Products are ordered when we receive your purchase order and invoice you. Stock lots are offered only when available or already secured.
  3. Most payments are done through third party freight forwarder escrow services to ensure security for all  30% deposit is required at the time your order is invoiced with balance due upon successful inspection.
  4. In some cases, we can accept ILC payments from a major world bank, with 10% deposit. This is established on individual cases depending on circumstances.
  5. Inspections are conducted by Under Bond warehouses at our expense.  Buyers are welcome to request additional inspection  at their own expense.
  6. All prices are quoted Ex Works Bonded Warehouse at the freight forwarder where the inspection will be held.
  7. The buyer may opt to be present at any inspection as best suits his policy.
  8. Each sales contract additionally requires a confidentiality agreement binding all parties against circumvention and non-disclosure of information.
  9.  All product is guaranteed fresh.  No samples are available.
  10.  All product is guaranteed original and includes all necessary documentation for exportation.
  11.  All buyers are required to have authorization to either wholesale or retail cigarettes with the affected manufacturers if using European Ports.  Dubai is still a no questions asked port though due diligence will still be performed.
  12.  Photographs of 6 sides of one pack, one carton and one master case will be provided to the buyer along with the required documents after inspection.  Photographs prior to inspection are not proof of stock and are not provided.