It is quite common for businesses in the UK to import a wide range of goods from India. But for someone who is new in the field, having a sound idea about specific terms & conditions is extremely vital. Being a newbie makes one vulnerable to endless risks of making mistakes. From among those mistakes, the most common one made by importers is not knowing whether they have purchased FOB or Ex Works. While the former means one has to pay only from the port or warehouse from where the consignments would be sent, the latter implies that the trader must make transport payments right from the location of the supplier in India.
If you are shipping from India for the first time, here are certain mistakes related to Ex Works and FOB that you must avoid at all costs:
FOB New Delhi
This specific thing signifies that your supplier has to pay for delivering cargo to a New Delhi-based warehouse. When goods move across India from state to state, a certain tax is levied on them. Since New Delhi comprises three states, it can triple the amount for you. Therefore, make sure you employ an experienced freight forwarding company to steer clear of this mistake.
Improper Documentation
It can be possible to forget or overlook the fact that original transit papers are necessary for releasing the goods once they are in UK. This means, there would be a Bill of Lading when cargo is being shipped after getting handed over. Make sure you remember this carefully and return the Bill to your freight forwarding agent in UK for receiving the goods.
Underestimating Transit Time
Another of the most common mistakes while shipping anything from India is undermining the transit time. It is important for you to know that Nhava Sheva is the only port in India through which Europe can get direct service. Even then it takes around 35 to 40 days to ship from New Delhi. But it can also happen the shipping of your goods do not begin from the Mumbai. So prepare for a transit time of around 50 days, or even more if there are delays. If you are getting goods from North India, order directly from New Delhi for preventing unnecessary delays.
Thus, rather than getting all panicky, simply follow the given tips to avoid these mistakes and ensure a seamless delivery of your shipments from India.
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