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 2019 and with enforced date on 1st January 2020.

 

The ICC has classified Incoterms 2020 depending on the type of transport used. Then first group includes 7 incoterms  (EXW, FCA, CPT, CIP, DAP, DPU 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 2020

	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. Buyer has the option to authorize seller to get "B/L on board" for sea shipments.
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 (clause A London Institute Cargo Clauses) to the destination. Used for sea and inland waterway transportation.
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.
DPU	Delivered at Place Unloaded	Seller deliver goods at a pointed place, unloaded but without import customs clearance.
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 either A or C London Institute Cargo Clauses. Used for sea and inland waterway transportation.

MORE INFORMATION

	Incoterms: Risks and Costs Download pdf