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Incoterms
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Basic overview of the Incoterms 2020 Rules
The details of 11 Incoterms
EXW
Ex Works means that the seller delivers when it 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 the goods for export, where such clearance is applicable.
The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
FCA
Free Carrier means that 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 clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
FOB(applicable to ocean freight)
Free on Board means that the seller delivers 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 damage or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from the moment onwards.
The risk of loss of damage or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from the moment onwards.
FAS(applicable to ocean freight)
Free Alongside Ship means that 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 goods are alongside the ship, and the buyer bears all costs from the moment onwards.
The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from the moment onwards.
CFR(applicable to ocean freight)
Cost and Freight means that 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 goods 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.
The risk of loss of or damage to the goods passes when the goods 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(applicable to ocean freight)
Cost, Insurance and Freight means that 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 goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring goods to the named port of destination. .
The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring goods to the named port of destination. .
CPT
Carried Paid To means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place(if any such place is agreed between the parties) and
that the seller must contract for and pay the costs of carriage necessary to bring goods to the named place of destination.
that the seller must contract for and pay the costs of carriage necessary to bring goods to the named place of destination.
DAT
Delivered at Terminal means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the
named port or place of destination. Terminal includes any place whether covered or not, such as quay, warehouse, container yard or road rail or air cargo terminal.
The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
named port or place of destination. Terminal includes any place whether covered or not, such as quay, warehouse, container yard or road rail or air cargo terminal.
The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
DAP
Delivered at Place means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving mens 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.
The seller bears all risks involved in bringing the goods to the named place.
DDP
Delivered Duty Paid means that 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 costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.