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INCOTERMS® 2010

 

The INCOTERMS rules or International Commercial Terms are a series of pre_defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

 

The INCOTERMS rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. As such they are regularly incorporated into sales contracts worldwide.

 

 

 


 

 

Rules for any mode of transport

 

 

EXW: EX WORKS

The seller fulfills his obligations by having the goods avilable for the buyer to pick up at his premises or another named place (i.e. factory, warehouse, etc.). Buyer bears all risk and costs starting when he picks up the products at the seller´s location until the products are delivered to his location. Seller has no obligation to load the goods or clear them for export.

 

FCA: FREE CARRIER

The seller delivers the goods export cleared to the carrier stipulated by the buyer or another party authorized to pick up goods at the seller´s premises or another named place. Buyer assumes all risks and costs associated with delivery of goods to final destination including transportation after delivery to carrier and any customs fee to import the product into a foreing country.

 

CPT: CARRIAGE PAID TO 

Seller clears the goods for export and delivers them to the carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible for the transportation costs associated with delivering goods to the named place of destination but is not resposible for procuring insurance.

 

CIP: CARRIAGE AND INSURANCE PAID TO

Seller clears the goods for export and delivers tem to the carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible for the transportation costs associated with delivering goods and procuring minimum insurance coverage to the named place of destination.

 

DAT: DELIVERED AT TERMINAL

Seller clears the goods for export and bears all risks and costs associated with delivering the goods and unloading them at the terminal at the named port or place of destination. Buyer is responsible for all costs nad risks from this point forwardincluding clearing the goods for import at the named country of destination. 

 

DAP: DELIVERED AT PLACE

Seller clears the goods for export and bears all risks nad costs associated with delivering the goods to the named place of destination not unloaded. Buyer is responsible for all costs and risks associated with unloading the goods and clearing customs to import the goods into the named country of destination.

 

DDP: DELIVERED DUTY PAID

Seller bears all risks and costs associated with delivering the goods to the named place of destination ready for unloading and cleared for import.

 

 


 

 

Rules for sea and inland waterway transport

 

 

FAS: FREE ALONGSIDE SHIP

Seller clears the goods for export and delivers them when they are placed alongside the vessel at the named port of shipment. Buyer assumes all risks/costs for goods from this point forward.

 

FOB: FREE ON BOARD

Seller clears the goods for export and delivers them when they are onboard the vessel at the named port of shipment. Buyer assumes all risks/cost for goods from this moment forward.

 

CFR: COST AND FREIGHT

Seller clears the goods for export and delivers them when they are onboard the vessel at the port of shipment. Seller bears the cost of freight to the named port of destination. Buyer assumes all risks for goods from the time goods have been delivered on board the vessel at the port of shipment.

 

CIF: COST INSURANCE AND FREIGHT

Seller clears the goods for export and delivers them when they are onboard the vessel at the port of shipment. Seller bears the cost of freight and insurance to the named port of destination. Seller´s insurance requirement is only for minimum cover. Buyer is responsible for all costs associated with unloading the goods at the named port of destination and clearing goods for import. risk passes from seller to buyer once the goods are onboard the vessel at the port of shipment.

 

 

 


 

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