Carriage inward - carriage outward

Hi,

Carriage Inward x Carriage Outward

If Indian company purchases the goods from overseas factory on Ex-works, out of India Port .

Then solds the goods to Indian customer on CIF - India Port.

Are the freight ( sea / air) charges incurred for movement from Port of Origin to Port of Discharge, considered as Carriage Inward or Carriage Outward ?

 

Regards

Amit

 

Replies (5)

Hello Amit, the carriage charges mentioned by you that is carriage from port of origin to port of dispatch will be considered as outward carriage.

It is carriage inward.
Bringing from port of origin to dispatch is carriage inward.as u are incurring charges to bring it to marketable condition
It would charged as carriage inward

Dear Mr. Amit,

Freight charges incurred on on purchasing the goods Ex-Works and them selling it to an Indian Customer on CIF basis will be treated as Carriage outwards for the reasons mentioned below:

  • Ownership at the time of purchasing the material Ex works has already been transferred to Indian supplier at the time of taking delivery overseas and the material is supplied, as such, directly to a third party, and thus the material is in marketable condition at the overseas port, itself.
  • Any expenses incurred, thereafter, in CIF supply, till the third party receives the material is carriage outwards, as in this case, place of business of Indian supplier has shifted to overseas port.

Hope this satisfies your doubts.

Regards,

CA. Krishna Srivastava

 

 

 

 

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