Incoterm

INCOTERMS 2020

EXW – EX WORKS (NAMED PLACE)

Under EXW, the recipient assumes responsibility for collecting goods from the supplier's premises, such as a store or warehouse. The supplier is only obligated to prepare the goods for shipment, with all costs borne by the recipient. This term is typically used for domestic transportation by any means.

FCA - FREE CARRIER (NAMED PLACE OF ORIGIN)

FCA is a widely used term, allowing flexibility in transport mode and delivery location within the seller's country. It involves two dispatch points, one owned by the seller and another not owned by them. The delivery is considered complete upon loading onto the buyer's vehicle or transfer to the buyer's designated courier.

FAS – FREE ALONGSIDE SHIP

FAS entails delivery completion when goods are placed alongside the ship for loading, to be handled by the recipient. It's specifically for sea or inland waterway transport, with the supplier covering export duties, packaging, and transportation to the port, while the recipient handles shipping, insurance, and import duties.

FOB - FREE ON BOARD (NAMED PORT OF LOADING)

Under FOB, delivery is fulfilled when goods are loaded onto the recipient's hired ship at the named port of loading. Responsibilities are shared equally between the supplier and recipient, covering export duties, packaging, and loading by the supplier, and shipping, insurance, and import duties by the recipient.

CFR/C&F - COST AND FREIGHT (NAMED PORT OF DESTINATION)

CFR involves delivery completion when goods are on board the supplier's hired ship at the destination port. Supplier responsibilities include export duties, packaging, transportation to the port, loading, and ship hiring, while the recipient manages unloading, delivery, insurance, and import duties.

CIF - COST, INSURANCE AND FREIGHT (NAMED PORT OF DESTINATION)

CIF entails delivery completion when goods are on board the supplier's hired vessel, insured and destined for the agreed port. Supplier obligations include export duties, packaging, transportation, loading, ship hiring, insurance, and documentation, with the recipient handling unloading, delivery, and import duties.

CIP - CARRIAGE AND INSURANCE PAID TO (NAMED PLACE OF DESTINATION)

CIP involves delivery completion after customs procedures, insurance, and transfer to the forwarder for transport to the specified destination. Supplier responsibilities encompass delivery, insurance, and documentation, with risks transferring to the recipient upon forwarding.

CPT - CARRIAGE PAID TO (NAMED PLACE OF DESTINATION)

CPT concludes delivery upon customs clearance and transfer to the forwarder for transport to the specified destination. Supplier responsibilities cover delivery and clearance, with risks shifting to the recipient upon forwarding. Unlike CIF and CIP, the recipient insures the goods.

DAP — DELIVERED AT PLACE

DAP signifies delivery completion upon goods' arrival at the specified destination, ready for unloading. Supplier obligations include export duties, transportation, loading, and delivery to the destination, with the recipient managing unloading, insurance, and import duties.

DPU — DELIVERED NAMED PLACE UNLOADED

DPU concludes delivery when goods are placed at the recipient's disposal at the named place, with the supplier bearing costs for export duties, delivery, and unloading. The recipient manages insurance, import duties, and other relevant expenses.

DDP — DELIVERED DUTY PAID

DDP signifies delivery completion upon goods' arrival at the destination, with all duties paid. The supplier assumes maximum obligations, covering export and import payments, transportation costs, and insurance. The recipient is responsible for unloading and optional insurance.