Incorm
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Incoterms are a set of standardized trade terms published by the International Chamber of Commerce that define the responsibilities of the seller and buyer for the delivery of goods under sales contracts. Some key Incoterms include EXW (seller's minimum responsibility), FCA (seller delivers to a carrier), CPT (seller pays for carriage to destination), and DDP (seller bears all costs and risks to deliver the goods to the destination). Incoterms help clarify important issues like timing and allocation of costs and risks for international commercial transactions.
Incorm
- 1. Incoterms
- 2. • The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. • INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. • It is essential that you are aware of your terms of trade prior to shipment.
- 3. • EXW – EX WORKS (… named place of delivery) The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination. • FCA – FREE CARRIER (… named place of delivery) The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination
- 4. • CPT – CARRIAGE PAID TO (… named place of destination) The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. • CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination) The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
- 5. • DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination) Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal. • DAP – DELIVERED AT PLACE (… named place of destination) The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place. • DDP – DELIVERED DUTY PAID (… named place) The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.