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INCOTERMS is the abbreviation of International Commercial Terms, which were defined in 1936 by the International Chamber of Commerce (ICC). Since that time have been several revisions and updates of the Incoterms. The Incoterms are supposed to define the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify at what exact time the change of ownership of the merchandise is taking place. They are used in conjunction with a sales agreement or other methods of transacting the sale. A careful use of the Incoterms is essential because they are related to particular modes of transportation. EXW,CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation. FAS, FOB, CFR, CIF, DES, DEQ are used for sea and inland waterways. EXW ( incoterms 2000 ) 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 ( incoterms 2000 ) Free Carrier - The seller delivers the goods into the charge of the carrier, The international carriage is not paid by the seller, if the carriage is unloaded at the dock of the seller or a different place where the shipment is available unloaded to the international carrier or agent. FAS ( incoterms 2000 ) Free Alongside Ship - Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside the shop by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller. FOB ( incoterms 2000 ) Free on Board - Title and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation. CFR ( incoterms 2000 ) Cost and Freight - Title, risk and insurance cost pass to buyer when deliverd on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation. CIF ( incoterms 2000 ) Cost, Insurance and Freight - Title and risk pass to buyer when deliverd on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation. CPT ( incoterms 2000 ) Carriage paid - Title, risk, insurance cost pass to buyer when deliverd to carrier by seller who pays transportation cost to destination. Used for any mode of transportation. CIP ( incoterms 2000 ) Carriage and Insurance Paid - Title ans risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation. DAF ( incoterms 2000 ) Delivered at Frontier - Title, risk, responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation. DES ( incoterms 2000 ) Delivered Ex Ship - Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship or destination port. Used for sea and waterway transportation. DEQ ( incoterms 2000 ) Delivered Ex Quay (Duty paid) - Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation. DDU ( incoterms 2000 ) Delivered Duty Unpaid - Seller fulfils his obligation when goods have been made available at the named place in the country of importation. DDP ( incoterms 2000 ) Delivered Duty Paid - Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation. |
