Free-store is what?

One of the important moments at the conclusion of trade transactions is transportation, delivery of the goods to the buyer from the manufacturer and the seller. These actions can be carried out by the transport of the buyer, seller or other organization. It does not matter how this process is carried out, the costs are borne by the party indicated in the contract of sale. Free-store is the way of formation of the price for the bought goods.

What is franking

Any transportation costs are additional to the organization that pays for them. That is why these costs are usually taken into account by the enterprise-sellers, forming selling prices. The rules worked out by international practice affect the level of the value of the goods, depending on the basic terms of delivery. That is, if the term "ex-warehouse" is specified in the contract, this means that a certain amount for delivery to the specified place and insurance of the sold values are added to the initial price.

What is included in the conditions for the formation of a price in a major trade transaction

These conditions include generally accepted concepts:

• Station of destination;
• The place of destination of the goods;
• Station or place from which the goods are shipped;
• Ex-manufacturer's warehouse;
• The type of transport to which the goods are delivered;
• Other trading activities and terminology.

Free warehouse is the agreed terms, in accordance with which the seller undertakes to deliver and pay by means of its own means the sold goods to the point or place indicated in the text of the contract. The supplier pays the shipping costs until the goods are received by the buyer.

What is the difference between a free warehouse and a franco enterprise

The franking must necessarily be indicated in the invoices for the goods. In cases where the buyer takes the purchased products "by self-transportation", the seller is obliged to reimburse the amount spent for transportation costs, if this money is included in the selling price.

• Pricing by the principle of "franco-buyer's warehouse" is the price for the goods, when the seller or the manufacturer pays all the expense items for transporting the product to the buyer.
• Franco-berth in trade terminology refers to the process when all the rights to the goods, the responsibility for its preservation and movement pass to the buyer after the delivery of the goods to a certain berth.
• The term "ex-enterprise" indicates that the seller is not in any way responsible for the delivery of the goods, as is the "ex-supplier's warehouse". What does this give to both sides? All details are specified in the contract, under which both the seller and the buyer receive benefits and remain in profit.

In some cases, the use of terminology does not have formal rules, but only trade practices. This concerns the French-car. According to this condition, the seller's duties include:

• In time to order the corresponding railway transport, having paid it by own means;
• Download the goods;
• Inform the buyer of the delivery time;
• Provide the prepared transport documentation.

The buyer's responsibility is to pay for the carriage of goods and the freight forwarder's work.

What is the use of franking?

The conditions for establishing basic prices for goods are worked out by world trade experience and practice. Thanks to franking, import and export operations became easier. Internal methods of pricing in retail and wholesale trade zones are also based on the same rules.

The list of such pricing includes many types of transportation costs, the points of delivery and storage of goods are named. It's about the French embankment, the Franco-pier, the French truck and other terms.

Thanks to the generally accepted system of price formation, called "franking", "Franco", the processes of delivery and responsibility of the parties for purchased and sold goods have become simpler. Systematized actions proved useful to all participants of trading operations. Free-store is a trade agreement on the process and payment for delivery of purchased and sold goods.