Delivery Terms

Use the Delivery Terms command to maintain the codes that identify the terms of delivery on the SDs you submit for Intrastat purposes.

Whether you record terms of delivery is optional according to the delivery terms threshold. If your trade (either arrivals or dispatches) falls below this threshold, you don’t need to record this information for SD submissions. If the threshold is exceeded for arrivals of goods but not dispatches, delivery terms need only be recorded for arrivals. For the current thresholds, refer to the HMRC UK Trade Info web site.

Control over the recording of terms of delivery is controlled by the setting of the Include Delivery Terms boxes on the System - Maintenance - Company Profiles form. These options are separately applied to EC despatch SDs and EC arrival SDs.

You can assign the delivery terms code to each EC customer and supplier using the Terms of Delivery box on the Sales - Processing - EC VAT form and the Purchase - Processing - EC VAT form.

Box	Description
Delivery Term	A reference that identifies the terms of delivery. This is one of the following: EXW (Ex works) This indicates that the goods were made available at the seller’s premises (for example, works, factory, warehouse, and so on) and the buyer bears all the costs (loading, transport, and so on) from that point on; FOB (Free on board at the port of departure) This shows that the seller has borne the cost of transporting the goods to the port in the Member State of dispatch (for example, Rotterdam port or Madrid airport). The buyer is then responsible for all costs from that point. Goods delivered FAS should be shown as FOB; CIF (Cost, insurance and freight to the port of arrival) The seller pays all the costs and freight charges necessary to get the goods to a port in the Members State of arrival (for example, Harwich or London Heathrow airport). The buyer’s responsibility only covers the charges associated with domestic transport from the port of arrival. Goods delivered DEQ, DES, CPT, CIP and CFR should be shown as CIF; DDU or DDP (Delivered domicile or fully delivered) The seller delivers the goods to a named place in the Member State of arrival (for example, the buyer’s premises or a particular warehouse) and is responsible for all costs involved in doing so; and XXX (Any other method not covered by the above) This code should only be used as a last resort. The nearest positive delivery term must be used wherever possible.

Box

Description

Delivery Term

A reference that identifies the terms of delivery. This is one of the following:

EXW (Ex works) This indicates that the goods were made available at the seller’s premises (for example, works, factory, warehouse, and so on) and the buyer bears all the costs (loading, transport, and so on) from that point on;

FOB (Free on board at the port of departure) This shows that the seller has borne the cost of transporting the goods to the port in the Member State of dispatch (for example, Rotterdam port or Madrid airport). The buyer is then responsible for all costs from that point. Goods delivered FAS should be shown as FOB;

CIF (Cost, insurance and freight to the port of arrival) The seller pays all the costs and freight charges necessary to get the goods to a port in the Members State of arrival (for example, Harwich or London Heathrow airport). The buyer’s responsibility only covers the charges associated with domestic transport from the port of arrival. Goods delivered DEQ, DES, CPT, CIP and CFR should be shown as CIF;

DDU or DDP (Delivered domicile or fully delivered) The seller delivers the goods to a named place in the Member State of arrival (for example, the buyer’s premises or a particular warehouse) and is responsible for all costs involved in doing so; and

XXX (Any other method not covered by the above) This code should only be used as a last resort. The nearest positive delivery term must be used wherever possible.