Freight prepaid refers to shipping costs that the shipper has already paid before the goods are transported. This payment occurs at the port of origin or loading point, and these charges are reflected in the invoice sent to the importer. It is important to note that freight prepaid charges are non-refundable, even if the shipment does not arrive at its intended destination.
The term "freight prepaid" is commonly used in shipping and logistics law. It is relevant in contracts related to the transportation of goods, particularly in international trade. Understanding this term is essential for shippers and importers, as it affects the financial responsibilities associated with shipping costs. Users can manage related documentation using legal templates provided by US Legal Forms, which are drafted by experienced attorneys.
Here are a couple of examples of abatement:
(hypothetical example) A company in the United States ships machinery to a buyer in Germany. The U.S. company pays the freight charges before the shipment leaves the port. These charges are included in the invoice sent to the German buyer. If the machinery is lost during transit, the U.S. company cannot reclaim the freight charges.
| Term | Definition | Key Differences |
|---|---|---|
| Freight Collect | Shipping charges paid by the receiver upon delivery. | In contrast to freight prepaid, the receiver bears the cost. |
| Freight Prepaid and Add | Freight charges paid by the shipper but added to the invoice for the buyer. | Charges are prepaid but later billed to the buyer, unlike freight prepaid where costs are settled upfront. |
If you are involved in shipping goods and the term freight prepaid applies to your situation, ensure that you clearly understand the payment terms. Review your invoices carefully. If you need to handle related documentation, consider using US Legal Forms for ready-to-use templates. For complex situations, seeking professional legal assistance may be beneficial.
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| Attribute | Details |
|---|---|
| Typical Fees | Varies based on shipment size and destination. |
| Jurisdiction | Applicable in both domestic and international shipping. |
| Refund Policy | Non-refundable once paid. |
It means the shipper has paid the freight charges in advance before the shipment is transported.