USEFUL INFORMATION

Incoterms are international rules for commercial interpretation terms in respect selling and buying contracts. Enforcing holders rights and obligations  for the transport.


They are published by the International Chamber of Commerce. Last version was launched on 2010 and with enforced date on 1st January 2011.

 

The ICC has classified Incoterms 2010 depending on the type of transport used. Then first group includes 7 incoterms  (EXW, FCA, CPT, CIP, DAT, DAP y DDP) to be used  despite the type of transport and focused on multimodal transport.  Second group includes 4 incoterms (FAS, FOB, CFR y CIF) focused on sea transport.

INCOTERMS 2010

 
  

INCOTERM

DESCRIPTION

MULTIMODAL

EXW

Ex Works

Title and risk pass to buyer including payment of all transportation and insurance cost from the seller’s door. Used for any mode of transportation.

FCA

Free carrier-named place

Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the buyer’s collecting vehicle. It is the buyers obligation to receive the sellers arriving vehicle unloaded.

CPT

Carriage paid to

Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.

CIP

Carriage and insurance paid to

Title, risk and insurance pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to the destination. Used for sea and inland waterway transportation.

DAT

Delivered at Terminal

Seller deliver goods at a pointed port terminal or dry terminal, discharged but without import customs clearance.

DAP

Delivered at Place

Seller delivers goods to buyer at the agreed place, excluded duties and taxes and any other additional cost due official customs import in the destination country.

DDP

Delivered duty paid

Seller delivers goods to buyer at the agreed place  without discharge and custom cleared all cost paid.

MARITIMO

FAS

Free alongside ship

Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance rests with the seller.

FOB

Free on board

Title and risk pass to buyer including payment of all transportation and insurance cost once delivered on board by the seller. Used for sea or inland waterway transportation.

CFR

Cost and freight

Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea and inland waterway transportation.

CIF

Cost, insurance and freight

Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to the destination port. Used for sea and inland waterway transportation.

MORE INFORMATION

Incoterms: Risks and Costs
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