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board), except the seller fulfills its obligations when the goods are delivered to the custody of the carrier at the named place. If no precise place can be named at the time of the contract of sale, the parties should refer to the place where the carrier should take the goods into its charge. The risk of loss or damage to the goods is transferred from seller to buyer at that time and not at the ship's rail. The term "carrier" means any person by whom or in whose name a contract of carriage by road, rail, air, sea, or a combination of modes has been made. When a seller has been furnished a bill of lading, way bill or carrier's receipt, the seller duly fulfills its obligation by presenting such a document issued by a carrier.
FAS- FREE ALONGSIDE SHIP(...named port of shipment) "Free Alongside Ship" requires the seller to deliver the goods alongside the ship on the quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods. Unlike F.O.B., F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods.
FOB- FREE ON BOARD (...named port of shipment) Under the "Free on Board", the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i.e., off the dock and placed on the ship). The seller pays the cost of loading the goods.
CFR- COST AND FREIGHT (...named port of destination) "CFR" requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility.
CIF- COST AND FREIGHT (...named port of destination) "CIF" is CFR", with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods. The seller must contract with the insurer and pay the insurance premium. Insurance is more important in international shipping than domestic shipping because U.S. laws generally hold a common carrier to be liable for lost or damaged goods.
CPT- CARRIAGE PAID TO (...named place of
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destination) This term means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the first carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt, the seller duly fulfills its obligation by presenting such a document issued by the person contracted with for carriage to the main destination.
CIP- CARRIAGE AND INSURANCE PAID TO (...named place of destination) This term is the same as "CPT" but with the additional requirement that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
DAF- DELIVERED AT FRONTIER (...named place) "DAF" means the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. The term is primarily used when goods are carried by rail or truck. The seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs.
DES- DELIVERED EX SHIP (...named port of destination) Means the seller shall make the goods available to the buyer on board the ship at the place named in the sales contract. The seller bears the full cost and risk involved in brining the goods there. The cost of unloading the goods and any customs duties must be paid by the buyer.
DEQ- DELIVERED EX QUAY (...named port of destination) Means the seller has agreed to make the goods available to the buyer on the quay or the wharf at the place named in the sales contract. The seller bears the full cost and risks in delivering the goods to that point including unloading.
DDU- DELIVERED DUTY UNPAID (...named place of destination) Under these terms, the seller fulfills his obligation to deliver when
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The Home Depot, the world's leading home improvement retailer, announced on March 20, 2002 that it has doubled its presence in Mexico by signing an agreement to acquire Del Norte, a four-store chain of home improvement stores in Juarez, Mexico. The financial terms of the transaction, which is subject to approval by the Mexican government, were not disclosed.
"We have been saying for some time that Mexico offers great opportunity for our business," said Bob Nardelli, chairman, president & CEO of The Home Depot. "Our strong cash position allows us to make this acquisition and invest in Mexico's large and vibrant economy. Not only are we able to further expand our business in that country with experienced and valuable new talent, but we have greater access to the growing Juarez, Mexico and El Paso, Texas metropolitan area."
Del Norte is the third largest home improvement retailer in Mexico and was founded in 1942. Stores average 79,000 square feet including selling space and a building mat-
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