Incoterms

Incoterms Explained

EXW - Exworks

• A Named place must be specified
• EXW can be used for any mode of transport
• Seller must make the goods available to the buyer at his premises or another named place.
• The consignment is uncleared for export
• The consignment is not loading to any vehicle

Under EXW the buyer has the main responsibility

FCA - Free Carrier

• A named place must be specified
• FCA is suitable for any type of transport
• Seller musthand over the consignment export cleared
• To the buyer nominated carrier
• At the named place

Under FCA the main freight charge is paid by the Buyer

FAS - Free Alongside Ship

• A named port of shipment must be specified
• FAS is suitable for Seaand inland waterwaymovements only
• Seller must place the consignment
• Alongside the vessel
• At named port of shipment

Under FAS the main freight charge is paid by the buyer

FOB - Free on Board

• A Named port of shipment must be specified
• FOB is suitable for Sea and inland waterway movements only
• Seller hands over the consignment
• Export cleared
• When it passes over the ship's rail
• At the named port of shipment

Under FOB the main freight charge is paid by the buyer

CFR - Cost and Freight

• A named port of destination must be specified
• CFR is only suitable for sea and inland waterway movements
• Seller hands over the consignment
• when it passes over the ship's rail
• At the port of shipment
• Seller must pay freight and other charges to
• Named port of destination
• All additional costs and risks are the responsibility of the Buyer
• After the goods have passed over the ship's rail at the port of shipment

Under CFR the main freight charges are paid by the seller

CIF - Cost Insurance and Freight

• A named port of destination must be specified
• CIF is only suitable for sea and inland waterway movements
• Seller hands over the consignment
• when it passes over the ship's rail
• At the port of shipment
• Seller must pay freight and other charges to
• Named port of destination
• Seller must effect insurance for loss or damage to the consignment whilst in transit
• All additional costs and risks are the responsibility of the Buyer
• After the goods have passed over the ship's rail at the port of shipment

Under CIF the main freight charges are paid by the seller

CPT - Carriage Paid To

• A named place of destination must be specified
• CPT is suitable for any typeof transport
• seller delivers the consignment
• to the nominated carrier
• Seller pays the freight costs to the named destination
• After the consignment has been handed over to the nominated carrier
• All additional costs and risks are the responsibility of the Buyer

Under CPT the main freight charges are paid by the seller

CIP - Carriage and Insurance Paid To

• A named place of destination must be specified
• CIP is suitable for anytype of transport
• seller delivers the consignment
• to the nominated carrier
• Seller pays the freight costs to the named destination
• Seller must effect insurance against loss or damage to the consignment during transit.
• After the consignment has been handed over to the nominated carrier
• All additional costs and risks are the responsibility of the Buyer

Under CIP the main freight charges are paid by the seller

DAT - Delivery at Terminal

DAP - Delivery at Place

DDP - Delivered Duty Paid

• A named place of destination must be specified
• DDP can be used for anytype of transport
• Seller must deliver the consignment to the buyer
• Cleared for import
• Not unloaded at the named place of destination

Under DDP the Seller pays the main freight charges to the named place of destination