A supplier offers to send your order from China with freight prepaid. Before approving the quotation, ask which transport charges are covered and where the agreed delivery obligation ends. Keep those answers with the purchase terms.
For a South African buyer, a destination port or delivery address can appear on several documents. Record what each document uses that place for. The place to which transport is paid may differ from the place where shipping risk passes between seller and buyer.
Separate the decisions in your quotation
The ICC's explanation of Incoterms and commercial contracts treats obligations, risk and costs as distinct parts of a sale arrangement. Use separate questions when checking your order.
| Decision | What to ask | What to retain |
|---|---|---|
| Freight payment | Who arranges and pays for each transport leg? | Quote and included-charge description |
| Delivery and risk | Which rule, version and precise delivery point are agreed? | Sale terms and any agreed changes |
| Destination work | Who handles import arrangements and final delivery? | Confirmed scope and named contacts |
| Insurance | Has cover been arranged, by whom and on what terms? | Policy or certificate, if applicable |
Ask for an explanation when a quotation uses a port name while a message promises delivery to your premises. Match the wording to the service you intend to buy before authorising payment.
Check C terms carefully
Under Incoterms 2020, CFR and CIF place delivery and the transfer of risk when the goods are on board the vessel at the port of shipment. CPT and CIP use delivery to the carrier at the agreed point. The seller arranges carriage to the named destination under these C terms, although risk transfers earlier. The ICC explains that delivery and destination are separate places in these arrangements.
For your order, identify the relevant delivery point and carrier handover. Ask the parties to resolve an unclear location or an agreed variation in writing. The selected rule belongs within the actual sale contract.
Keep one record of unanswered questions
Consider a fictional shop ordering display fittings from China. The supplier's quote mentions a South African port, while the shop's budget assumes delivery to its street address. The buyer asks for the following details before approving the shipment.
| Item | Entry to complete |
|---|---|
| Goods and quantity | Product specification and order reference |
| Freight scope | Starting point, destination and included legs |
| Sale arrangement | Agreed rule, version and named place |
| Import and destination work | Responsible party and included services |
| Insurance | Confirmed cover reference, or an open question |
| Changes | Revised quote reference and buyer approval |
These are proposed working fields, not a customer case or a contract form. Keep unknown details marked as pending. A supplier or forwarder can then answer the exact gap instead of replying to a general request for an all-in price.
Review insurance and claims separately
Ask who holds the insurance documents and whom to contact if cargo arrives short or damaged. Check the actual policy and transport terms for the reporting procedure. A freight payment receipt does not establish the insurance cover for your goods.
The ICC also explains that Incoterms do not replace a sale contract or determine ownership. Remedies for a breach also need the relevant contract terms. Keep the purchase agreement, transport arrangement and any insurance documents together so the people handling an exception can check their respective terms.
Prepare the shipment discussion
Send the product description, quantity and South African destination with the quotation wording you want clarified. Include the agreed trade arrangement if you have one, and identify any unknown import or destination work.
Use the shipment enquiry brief to prepare that discussion. The response should identify the applicable shipment scope and the points still requiring confirmation.