INCOTERMS

INCOTERMS

INCOTERMS OR INTERNATIONAL TERMS OF TRADE
RULES FOR INTERNATIONAL TRADE BY ANY MODE OF TRANSPORT, DEFINED BY INCOTERMS® 2016


EXW

Ex Works (named place)

This term applies maximum obligation on the buyer and minimum obligation on the seller. Incoterm Ex Works is generally used in the initial price quotation for a commodity, without any shipping costs included. It means that the seller makes the products available for collection at its premises (factory, warehouse, plant) on the agreed date and, from that moment onwards, the costs and risks of transporting the goods to the final destination will be the sole responsibility of the buyer. The seller does not have the duty to load the goods in the collection vehicles, nor to release them at the customs of origin for export. If the parties agree that the seller must load the cargo onto the vehicles, this will also be at the buyer's expense and risk, and must be explained in addition in the sales contract.

FCA
Free Carrier (named place)

The seller makes available to the transport agent (appointed by the buyer) the goods already cleared for export in a previously agreed place. Seller pays for shipping to this location, and shipping responsibilities are transferred to buyer as soon as the cargo is delivered for handling by the designated shipping agent.

CPT
Carriage Paid To (named place of destination)

Seller pays for shipping to final destination, but buyer assumes the risks and responsibilities provided the cargo is delivered to the shipping agent.

CIP
Carriage and Insurance Paid to (named place of destination)

The seller pays for transport to the final destination and also for international insurance, but the responsibilities are already transferred to the purchaser when the goods are delivered to the transport agent.

DAT
Delivered at Terminal (named terminal at port or place of destination)

The seller pays for transportation to the final destination, with the exception of costs related to customs clearance of importation, and assumes all risks until the goods are unloaded at the terminal.

DAP
Delivered at Place (named place of destination)

The seller pays for transportation to the named place, with the exception of costs related to customs clearance of importation, and assumes all risks prior to delivery of the goods to the buyer at his warehouse/factory/plant.

DDP
Delivered Duty Paid (named place of destination)

The seller is responsible for delivering the goods to a designated location in the buyer's country, and pays all costs for bringing the goods to that location, including import duties and taxes. This term applies maximum obligation on the seller and minimum obligation on the buyer.

 

EXCLUSIVE RULES FOR INTERNATIONAL WATERWAY TRADE, DEFINED BY INCOTERMS® 2010


FAS

Free Alongside Ship (named port of shipment)

The seller must clear the goods for export and make them available to the shipowner at the designated port. This term is commonly used for heavy-lift or bulk cargo. Only suitable for waterway transport (sea, river or lake).

FOB
Free On Board (named port or place of shipment)

The seller terminates its obligations when the goods cross the ship's rail at the indicated shipping port and, from that moment on, the buyer assumes all liability for damages and losses. Delivery is consummated on board the ship designated by the buyer, when all expenses are borne by the buyer. The seller is responsible for clearing the goods for export. This term must be used exclusively in waterway transport (maritime, river or lake).

CFR
Cost and Freight (named port of destination)

The seller must pay costs and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer as soon as the goods are loaded on board the ship. Shipping International insurance for goods is not included. This term was formerly known as CNF (C&F).

CIF
Cost, Insurance and Freight (named port of destination)

Exactly the same as the CFR, except the seller must also purchase and pay for international insurance.

 

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