incoterms – Gilitic.com

RULES FOR ANY MODE OR MODES OF TRANSPORT

EXW

EXW (Ex Works) is an Incoterm that describes the seller’s minimum obligation to make the goods available at their premises, usually a factory or warehouse. The buyer is responsible for all the costs and risks associated with loading the goods onto a truck and transporting them to the final destination.

The following are the steps involved in an EXW transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller prepares the goods for pickup at their premises and makes them available to the buyer.
The buyer arranges for transportation, insurance, and any necessary export documentation.
The buyer loads the goods onto a truck and transports them to the final destination.
The buyer is responsible for any customs duties, taxes, or fees associated with importing the goods into their country.
Once the goods are delivered to the final destination, the buyer assumes all responsibility for the goods, including any damage or loss that may occur during transit or while in storage.

Overall, in an EXW transaction, the seller has the least amount of responsibility and risk, while the buyer assumes most of the responsibility and risk associated with the transaction.

FCA

FCA (Free Carrier) is an Incoterm that requires the seller to deliver the goods to a carrier or another party nominated by the buyer at a named place of shipment. The named place can be a port, airport, or any other location where the goods can be loaded onto a means of transport.

The following are the steps involved in an FCA transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller prepares the goods for delivery and makes them available at the named place of shipment, typically a factory or warehouse.
The buyer nominates a carrier or other party to collect the goods from the seller’s premises, or arranges for their own carrier to collect the goods.
The seller loads the goods onto the carrier’s vehicle or another means of transport provided by the buyer.
The buyer is responsible for arranging transportation, insurance, and any necessary export documentation.
The buyer assumes all responsibility for the goods once they are loaded onto the carrier’s vehicle or another means of transport provided by the buyer.

Overall, in an FCA transaction, the seller is responsible for delivering the goods to the named place of shipment and loading them onto the carrier’s vehicle or another means of transport provided by the buyer. The buyer assumes responsibility for transportation, insurance, and any necessary export documentation, as well as assuming all responsibility for the goods once they are loaded onto the carrier’s vehicle or another means of transport provided by the buyer.

CPT

CPT (Carriage Paid To) is an Incoterm that requires the seller to deliver the goods to the carrier or another party nominated by the seller at a named destination. The seller is responsible for arranging and paying for transportation to the named destination, but the buyer is responsible for any costs and risks associated with the importation of the goods into their country.

The following are the steps involved in a CPT transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to the named destination, typically a port or airport.
The seller is responsible for loading the goods onto the means of transport and for any export documentation required.
The buyer is responsible for arranging for insurance, and for any import customs clearance and payment of customs duties, taxes or fees.
Once the goods arrive at the named destination, the buyer assumes all responsibility for the goods, including any damage or loss that may occur during transit or while in storage.

Overall, in a CPT transaction, the seller is responsible for arranging and paying for transportation of the goods to the named destination, but the buyer assumes responsibility for any costs and risks associated with the importation of the goods into their country.

CIP

CIP (Carriage and Insurance Paid to) is an Incoterm that requires the seller to deliver the goods to the carrier or another party nominated by the seller at a named destination. The seller is responsible for arranging and paying for transportation to the named destination, as well as for obtaining insurance for the goods during transit.

The following are the steps involved in a CIP transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to the named destination, typically a port or airport.
The seller is responsible for loading the goods onto the means of transport and for obtaining insurance for the goods during transit.
The buyer is responsible for any import customs clearance and payment of customs duties, taxes or fees.
Once the goods arrive at the named destination, the buyer assumes all responsibility for the goods, including any damage or loss that may occur during transit or while in storage.

Overall, in a CIP transaction, the seller is responsible for arranging and paying for transportation of the goods to the named destination and for obtaining insurance for the goods during transit. The buyer is responsible for any import customs clearance and payment of customs duties, taxes or fees, as well as assuming responsibility for the goods once they arrive at the named destination.

DPU

DPU (Delivered at Place Unloaded) is an Incoterm that requires the seller to deliver the goods to the buyer at a named place of destination, typically a warehouse or other facility. The seller is responsible for arranging and paying for transportation to the named destination, but the buyer is responsible for any costs and risks associated with unloading the goods from the delivery vehicle.

The following are the steps involved in a DPU transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to the named destination.
The seller is responsible for loading the goods onto the delivery vehicle and for any export documentation required.
The delivery vehicle arrives at the named destination, and the buyer is responsible for unloading the goods from the delivery vehicle.
The buyer assumes all responsibility for the goods once they are unloaded from the delivery vehicle, including any damage or loss that may occur during transit or while in storage.

Overall, in a DPU transaction, the seller is responsible for arranging and paying for transportation of the goods to the named destination, but the buyer assumes responsibility for unloading the goods from the delivery vehicle and for any costs and risks associated with this process.

DAP

DAP (Delivered at Place) is an Incoterm that requires the seller to deliver the goods to the buyer at a named place of destination, typically a warehouse or other facility. The seller is responsible for arranging and paying for transportation to the named destination, but the buyer is responsible for any costs and risks associated with unloading the goods from the delivery vehicle.

The following are the steps involved in a DAP transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to the named destination.
The seller is responsible for loading the goods onto the delivery vehicle and for any export documentation required.
The delivery vehicle arrives at the named destination, and the seller is responsible for unloading the goods from the delivery vehicle.
The buyer assumes all responsibility for the goods once they are unloaded from the delivery vehicle, including any damage or loss that may occur during transit or while in storage.

Overall, in a DAP transaction, the seller is responsible for arranging and paying for transportation of the goods to the named destination, but the buyer assumes responsibility for unloading the goods from the delivery vehicle and for any costs and risks associated with this process. The main difference between DAP and DPU is that in a DPU transaction, the buyer is responsible for unloading the goods from the delivery vehicle, while in a DAP transaction, the seller is responsible for unloading the goods from the delivery vehicle.

DDP

DDP (Delivered Duty Paid) is an Incoterm that requires the seller to deliver the goods to the buyer at a named place of destination, typically a warehouse or other facility. The seller is responsible for arranging and paying for transportation to the named destination, as well as for any customs duties, taxes, or fees associated with importing the goods into the buyer’s country.

The following are the steps involved in a DDP transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to the named destination.
The seller is responsible for loading the goods onto the delivery vehicle and for any export documentation required.
The delivery vehicle arrives at the named destination, and the seller is responsible for unloading the goods from the delivery vehicle.
The seller is responsible for any import customs clearance and payment of customs duties, taxes, or fees.
The buyer assumes all responsibility for the goods once they are unloaded from the delivery vehicle, including any damage or loss that may occur during transit or while in storage.

Overall, in a DDP transaction, the seller is responsible for arranging and paying for transportation of the goods to the named destination, as well as for any customs duties, taxes, or fees associated with importing the goods into the buyer’s country. The buyer assumes responsibility for the goods only after they are unloaded from the delivery vehicle. DDP is the Incoterm that places the most responsibility and risk on the seller.

FAS

FAS (Free Alongside Ship) is an Incoterm that requires the seller to deliver the goods to a named port of shipment and to place them alongside the ship, ready for loading. The buyer is responsible for loading the goods onto the ship and for all costs and risks associated with the shipment from that point onwards.

The following are the steps involved in a FAS transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller prepares the goods for delivery and delivers them to a named port of shipment.
The seller places the goods alongside the ship, ready for loading, and the buyer is responsible for loading the goods onto the ship.
The buyer is responsible for arranging for transportation, insurance, and any necessary export documentation.
The buyer assumes all responsibility for the goods once they are loaded onto the ship, including any damage or loss that may occur during transit or while in storage.

Overall, in a FAS transaction, the seller is responsible for delivering the goods to a named port of shipment and placing them alongside the ship, while the buyer assumes responsibility for loading the goods onto the ship and for all costs and risks associated with the shipment from that point onwards.

FOB

FOB (Free on Board) is an Incoterm that requires the seller to deliver the goods to a named port of shipment and to load them onto the ship. The buyer assumes responsibility for all costs and risks associated with the shipment from that point onwards.

The following are the steps involved in a FOB transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller prepares the goods for delivery and delivers them to a named port of shipment.
The seller loads the goods onto the ship.
The buyer is responsible for arranging for transportation, insurance, and any necessary export documentation.
The buyer assumes all responsibility for the goods once they are loaded onto the ship, including any damage or loss that may occur during transit or while in storage.

Overall, in a FOB transaction, the seller is responsible for delivering the goods to a named port of shipment and for loading them onto the ship, while the buyer assumes responsibility for all costs and risks associated with the shipment from that point onwards. FOB is a common Incoterm used in international trade, particularly in the shipping of bulk commodities.

DDP

CFR (Cost and Freight) is an Incoterm that requires the seller to deliver the goods to a named port of destination and to pay for the cost of transportation to that port. The seller is also responsible for obtaining insurance for the goods during transit to the port of destination. The buyer assumes responsibility for all costs and risks associated with the shipment from the port of destination onwards.

The following are the steps involved in a CFR transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to a named port of destination and pays for the cost of transportation.
The seller obtains insurance for the goods during transit to the port of destination.
The goods are loaded onto the shipping vessel and transported to the named port of destination.
The buyer assumes all responsibility for the goods once they arrive at the named port of destination, including any costs and risks associated with unloading the goods and taking delivery of them.

Overall, in a CFR transaction, the seller is responsible for arranging and paying for transportation of the goods to a named port of destination and for obtaining insurance for the goods during transit. The buyer assumes responsibility for all costs and risks associated with the shipment from the port of destination onwards, including any costs associated with unloading the goods and taking delivery of them.

CIF

CIF (Cost, Insurance, and Freight) is an Incoterm that requires the seller to deliver the goods to a named port of destination and to pay for the cost of transportation to that port. The seller is also responsible for obtaining insurance for the goods during transit to the port of destination. The buyer assumes responsibility for all costs and risks associated with the shipment from the port of destination onwards.

The following are the steps involved in a CIF transaction:

The buyer and seller agree on the price and terms of the sale, including the delivery location and the date of delivery.
The seller arranges for transportation of the goods to a named port of destination and pays for the cost of transportation.
The seller obtains insurance for the goods during transit to the port of destination.
The goods are loaded onto the shipping vessel and transported to the named port of destination.
The buyer assumes all responsibility for the goods once they arrive at the named port of destination, including any costs and risks associated with unloading the goods and taking delivery of them.
The seller is responsible for obtaining and paying for marine insurance for the goods during transit to the port of destination.

Overall, in a CIF transaction, the seller is responsible for arranging and paying for transportation of the goods to a named port of destination and for obtaining insurance for the goods during transit. The buyer assumes responsibility for all costs and risks associated with the shipment from the port of destination onwards, including any costs associated with unloading the goods and taking delivery of them. The seller is responsible for obtaining and paying for marine insurance for the goods during transit to the port of destination.