Shipping & Delivery

International Commercial Terms, commonly referred to as Incoterms®, are a globally recognized set of trade terms established by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international transactions, including who pays for transport, insurance, export and import clearance, and when risk transfers from the seller to the buyer. These terms are widely used in international trade contracts to avoid ambiguity and legal disputes. Incoterms clarify: - When the seller’s delivery obligation is fulfilled; - Which party bears export and import customs costs, duties, and taxes; - Who is responsible for procurement of transport, insurance, and logistics; - The point at which risk (loss or damage) shifts from seller to buyer. The latest internationally recognized version for most contracts is Incoterms® 2020 (or updated versions specified in the sales agreement).

Under CNF (also known as CFR — Cost and Freight), Cerahi TSG’s obligations include: - Preparing goods for export and completing all export customs clearance formalities; - Booking and paying for sea freight or agreed ocean transport to the named port of destination; - Ensuring goods are securely packed and delivered to the carrier for export. Import duties, taxes, customs clearance, and on forwarding from destination port to final delivery address are the responsibility of the buyer/consignee unless otherwise expressly agreed in writing. Risk of loss or damage transfers to the buyer once goods are loaded onto the vessel at the port of departure. Unless the invoice explicitly states that Cerahi TSG will bear customs duties or taxes at destination (e.g., Delivered Duty Paid (DDP)), all such import charges remain the buyer’s responsibility.

When goods are shipped under CIF (Cost, Insurance & Freight) terms, Cerahi TSG: - Bears the costs of carriage to the named port of destination; - Procures minimal marine insurance coverage for the benefit of the buyer; - Handles export documentation and export customs clearance. Risk still transfers to the buyer once goods are loaded onboard the vessel, but the seller must secure insurance against risks during carriage. Import duties, taxes, and inland transport from the destination port are the buyer’s obligation unless otherwise expressly confirmed in the sales contract.

Under DAP,: - Cerahi TSG arranges and pays for delivery of goods up to a named place in the buyer’s country; - Seller bears costs and risks of transport (including export clearance) until arrival at the agreed location. However, import customs clearance, duties, taxes, and any responsibilities after arrival remain the buyer’s responsibility. This term is sometimes preferred when parties want the seller to handle transport up to arrival, but the buyer to handle import compliance and costs.

Under DDP terms only if explicitly agreed in writing: - Cerahi TSG is responsible for all costs and risks associated with delivery to the buyer’s specified destination, including import customs clearance, duties, and local taxes. It represents the maximum obligation for the seller. Delivering DDP requires comprehensive knowledge of the buyer’s local import requirements and can involve significant compliance obligations; therefore it will only apply where explicitly documented in the sales contract.

Other commonly used terms may include: - FOB (Free On Board) — Seller loads goods onto the buyer’s nominated vessel; risk transfers at the rail of the exporting port. - FCA (Free Carrier) — Seller delivers goods to a named carrier at an agreed location; risk then passes to the buyer. - EXW (Ex Works) — Buyer bears nearly all costs and risks after goods are made available at seller’s facility. These terms are less common for Cerahi TSG bulk shipments unless agreed in writing.

Cerahi TSG handles export customs documentation and clearance for all shipments from Pakistan unless otherwise stated. Export duties, if applicable, are included in our processing unless otherwise defined in your invoice or export documentation.

Unless the invoice or contract explicitly states that Cerahi TSG will bear import customs charges, the buyer is responsible for all: - Import duties and tariffs levied by the destination country; - Value-added taxes (VAT) or Goods and Services Tax (GST) (where applicable); - Brokerage, handling fees, and other port or customs charges; - Delivery from port to final destination address. This remains true even in situations where the seller arranges transportation to the destination. It is the buyer’s responsibility to obtain any required import licenses, permits, or compliance documentation. Customs clearance delays or disputes should be handled directly by the buyer or their appointed import agent.

All delivery dates are estimates. Cerahi TSG undertakes commercially reasonable efforts to adhere to agreed timelines; however, shipments may be delayed due to: - Port congestion - Customs inspections - Carrier delays - Force majeure events Time is not of the essence unless expressly specified in the contract.

Cerahi TSG will provide all necessary documentation, which may include: - Commercial Invoice - Packing List - Bill of Lading / Air Waybill - Certificate of Origin - Export Declaration documents Upon receipt of valid payment documents or confirmation of funds as per the agreed payment method (LC, DP, DA, TT, etc.), these documents will be released to the buyer or the designated bank.

If payment is made by Letter of Credit (LC): - The LC must be issued by an internationally reputable bank and be irrevocable and confirmed (if required). - All compliance documents (shipping documents, invoice, packing list, etc.) must strictly conform to the terms stipulated in the LC to secure payment. - Discrepancies may delay or jeopardize payment; therefore, compliance is critical.

Under DP terms: - Shipping and title documents are sent to the buyer’s bank and released only upon payment at sight; - The buyer must make full payment before taking possession of documents needed for customs clearance. This method ensures the exporter retains security over shipment until payment is made.

For DA: - The buyer accepts a bill of exchange promising to pay on a specified future date (e.g., 30–90 days); - Banks may release shipping documents against the buyer’s acceptance of the draft, creating a time-based credit arrangement. The exporter will retain recourse against the buyer if payment is not made as agreed.

Other methods may include TT (wire transfer) or advance payment prior to shipment. These terms must be clearly specified in the sales contract or invoice.

Other methods may include TT (wire transfer) or advance payment prior to shipment. These terms must be clearly specified in the sales contract or invoice.