30 Nov Free port
The term “free port” is used commercially to indicate shipments in which the payment of transport costs is borne by the sender and not the recipient.
The term “port assigned” is opposed to the free port, in which the payment of transport costs is borne by the recipient. There are additional international trade clauses (in English “Incoterms”) which regulate the conditions of delivery in the transport sector. These clauses have not only the function of regulating the payment of shipments, but also the so-called transfer of risks, which establishes the moment in which the sender ceases and the recipient begins to take charge of the state of the goods.
Meaning
The term “franco” comes from the verb to affrancate. To remember the meaning, just think of the example of the postage stamp: also in this case the sender bears the cost of transporting the letter, if franked.
Instead of the term “free port” the terms “free home” or “ex warehouse” are often used.
