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INCOTERMS

Incoterms are a series of internationally recognised trade terms used in sales contracts to establish the rights and duties of the parties involved regarding the delivery of goods. They are published by the International Chamber of Commerce, the latest edition on 1 January 2010.

Incoterms aren’t laws, they’re rules and practices, so a new version doesn’t substitute the previous ones.

Aspects covered

Delivery of goods. Delivery must not be confused with possession. Moment in which responsibility for goods is transferred from buyer to seller. Sharing of the costs involved in importing/exporting. Customs procedures.

Brief description and structure

Incoterms are classified by means of transport:

Any means of transport (also when partially by sea)

(S): Seller (B): Buyer

INCOTERM

Descripción

EXW

Ex Works

(S) makes the goods available to (B) to be collected at their premises without being loaded onto any type of transport.

FCA

Free carrier-named place (S) hands goods over to a carrier at an agreed-upon location, loaded onto the means of transport.

CPT

Carriage paid to

(S) delivers goods to (B) when they are handed over to the carrier. (S) must pay freight costs.

CIP

Carriage and insurance paid to (S) delivers goods to (B) when they are handed over to the carrier. (S) must pay freight costs and purchase minimum-coverage transport insurance. If (B) would like additional insurance coverage, it must be agreed upon.

DAT

Delivered at Terminal

(S) delivers goods by making them available to (B) once unloaded at the designated terminal.

DAP

Delivered at Place (S) delivers goods by making them available to (B) via the means of transport ready for unloading at the designated destination.

DDP

Delivered duty paid (S) delivers goods by making them available to (B) at the agreed-upon location without unloading but after clearing customs with all costs paid.
  • Sea and inland waterways

INCOTERM

Descripción

FAS

Free alongside ship (S) delivers the goods to (B) or its transporter on the dock alongside the ship.
FOB Free on board (S) delivers goods loaded onto the ship.

CFR

CIF

Cost and freight

Cost, insurance and freight

(S) delivers goods loaded onto the ship and (S) pays for freight costs.

(S) delivers goods loaded onto the ship and (S) pays for freight costs and purchases minimum-coverage transport insurance. If (B) would like additional insurance coverage, it must be agreed upon.