Infinity Galaxy fulfills the Incoterm 2010 international trades and exports conditions. Besides, Infinity Galaxy will update its contract terms in the mid- 2020 according to Incoterms 2020. As a brief definition of Incoterms, we can say that incoterms are considered as a set of rules which clarify the responsibilities of both sellers and buyers under the sales contracts.
The International Chamber of Commerce (ICC) has announced the incoterms which are now mainly used in commercial trades. Incoterms are valid for shipping, insurance, and taxes on the commodities. As a benefit of the incoterms, we can mention the reduction of the prosecutions and ambiguity among the buyers and sellers.
Incoterms can be classified as below according to the mode of transport:
CPT Carriage Paid To
CIP Carriage and Insurance Paid To
Incoterms that apply to sea and inland waterway transport are as below:
FOB Free On Board
CFR Cost and Freight
CIF Cost, Insurance and Freight
What are ” BUYER”, ” SELLER ” and ” PRODUCTS” ?
SELLER: Infinity Galaxy who supplies and exports petrochemical products.
BUYER: The person or business group who buys the petrochemical products. As described in Infinity Galaxy company’s written quotation (offer and/or Pro-forma invoice or any similar document and includes its assignee (s) in the title.
Bitumen Price is available in several types as come above. Bitumen price is affected by the global oil price, countries financial growth, global banks aids to the developing countries, GDP (Gross Domestic Production) of each country, and generally the market stability and situation.
- FOB bitumen price
To elaborate, FOB stands for Free on Board bitumen price. Bitumen will be delivered on the shipboard. The customer is in charge of the bitumen transporting procedures.
In this case, the booking customer will receive the required containers from the shipping, and provide Infinity Galaxy with a prepayment. After the commodity is being loaded, the customer will receive the copy custom clearance and pay the total expense.
CFR/ CNF bitumen price
CFR & CNF stands for bitumen cost and freight which both are similar to each other. In this incoterm method, Infinity Galaxy as a supplier agent will guarantee the bitumen and shipping costs.
Infinity Galaxy responsibly commits the best possible shipping cost and port of discharge for its customers. Consequently, the customer will pay the rest of the payment on the Draft of Bill of Lading after the repayment.
Bill of Lading Draft indicates some information such as ship name, shipping time, voyage number, number and amount of the commodity. The BL (Bill of Lading) draft will be present in the destination of the customer under the specific consignee and notify party.
- CIF bitumen price
Is the abbreviated form of Cost, Insurance and Freight bitumen price. In this method, in addition to shipping and freight cost, the commodity will be insured by the marine international insurance and the customer will receive the goods with safe arrival commitment.
In all the above-mentioned methods, Local Charge Port of Loading including (Terminal Handling Charge (THC)) and every payment due to the customer and supplier agreement is on the supplier’s responsibility. A supplier should accept the problematic matters which may happen in the demurrage if the cause comes from the supplier. If the customer postpones the payment, he will be charged.
The procedures of purchasing Bitumen, Paraffin Wax and other Petroleum Products from Infinity Galaxy are as below
- Negotiation on Price, Quantity, Port of Discharge and other client requests.
- Receiving LOI from customer
- Issuing PI from Infinity Galaxy Commercial Department
- Confirming PI by the sign and stamp of customer
- Sign and Stamp contract between 2 parts
- Payment Terms based on the price is negotiable:
- Full advanced Payment (Cheapest Price)
- T/T (30% as advanced payment, 70% as balance payment by the copy of customs clearance documents or BL draft)
- Letter of Credit accepting in our Dubai or Oman account (100% at sight, none transferable – irrevocable and confirmed L/C)
- Or the other methods based on the contract
- Loading Cargo from Jebel Ali Port
8. Issuing Original Documents by Infinity Galaxy as below:
- Commercial Invoice
- Packing List
- Container List
- Certificate of Quality and Quantity
- Certificate of Origin
- Original Bill of Lading
- After settlement, the original documents will be delivered to the customer, or based on the L/C, all the documents will submit to the Bank.