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- Foreign-trade glossary
- INCOTERMS
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. |