Scribd
Upload
18 views

An Overview of Incoterms

Uploaded by

forlabafx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
18 views

An Overview of Incoterms

Uploaded by

forlabafx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

An overview of Incoterms® 2020 for 11 Terms, 7 for any mode of

transport.
EXW – Ex-Works or Ex-Warehouse

• Ex works is when the seller places the goods at the disposal of the buyer at the seller’s
premises or at another named place (i.e., works, factory, warehouse, etc.).
• The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear
them for export, where such clearance is applicable.

FCA – Free Carrier

• The seller delivers the goods to the carrier or another person nominated by the buyer at the
seller’s premises or another named place.
• The parties are well advised to specify as explicitly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.

FAS – Free Alongside Ship

• The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment.
• The risk of loss of or damage to the goods passes when the products are alongside the
ship. The buyer bears all costs from that moment onwards.

FOB – Free On Board

• The seller delivers the goods on board the vessel nominated by the buyer at the named port of
shipment or procures the goods already so delivered.
• The risk of loss of or damage to the goods passes when the products are on board the
vessel. The buyer bears all costs from that moment onwards.

CFR – Cost and Freight

• The seller delivers the goods on board the vessel or procures the goods already so delivered.
• The risk of loss of or damage to the goods passes when the products are on board the vessel.
• The seller must contract for and pay the costs and freight necessary to bring the goods to the
named port of destination.

CIF – Cost, Insurance and Freight

• The seller delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on the ship.
• The seller must contract for and pay the costs and freight necessary to bring the goods to the
named port of destination.
• The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to
the goods during the carriage.
• The buyer should note that under CIF the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need either to
agree as much expressly with the seller or to make its own extra insurance arrangements.
CPT – Carriage Paid To

• The seller delivers the goods to the carrier or another person nominated by the seller at an
agreed place (if any such site is agreed between parties).
• The seller must contract for and pay the costs of carriage necessary to bring the goods to the
named place of destination.

CIP – Carriage And Insurance Paid To

• The seller has the same responsibilities as CPT, but they also contract for insurance cover
against the buyer’s risk of loss of or damage to the goods during the carriage.
• The buyer should note that under CIP the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need either to
agree as much expressly with the seller or to make its own extra insurance arrangements.

DAP – Delivered At Place

• The seller delivers when the goods are placed at the disposal of the buyer on the arriving
means of transport ready for unloading at the named place of destination.
• The seller bears all risks involved in bringing the goods to the named place.

DPU – Delivered At Place Unloaded (replaces Incoterm® 2010 DAT)

• DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers when
the goods, once unloaded are placed at the disposal of the buyer at a named place of
destination.
• The seller bears all risks involved in bringing the goods to, and unloading them at the named
place of destination.

DDP – Delivered Duty Paid

• The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared
for import on the arriving means of transport ready for unloading at the named place of
destination.
• The seller bears all the costs and risks involved in bringing the goods to the place of
destination. They must clear the products not only for export but also for import, to pay any
duty for both export and import and to carry out all customs formalities.

You might also like