Incoterms 2010
Incoterms (international commercial terms) state the rules valid all over the world who identify without doubts who has to paid what and the responsibility for each part of the shipment, for Duties in Import / export, and who has to take care of the insurance.
Here you will find the information for each term.
| INTERCOM 2010 | Loading on Truck (Carrier) | Export Customs Declaration | Carriage to Port/Airport of Export | Unloading of Truck in Port/Airport of Export | Loading charges for export | Carriage (Sea/Air freight) to destination | Loading charges at destination | Loading on truck at destination | Carriage to place of destination | Insurance | Import Customs Clearance | Import taxes |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXW | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | N/A | Buyer | Buyer |
| FCA | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | N/A | Buyer | Buyer |
| FAS | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | N/A | Buyer | Buyer |
| FOB | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | N/A | Buyer | Buyer |
| CFR | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | N/A | Buyer | Buyer |
| CIF | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Seller | Buyer | Buyer |
| DAT | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | N/A | Buyer | Buyer |
| CPT | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | |
| CIP | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer |
| DAP | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | N/A | Buyer | Buyer |
| DDP | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | N/A | Seller | Seller |
EXW – Ex Works (named place of delivery)
“Exworks” means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises pr another named place (i.e. works, factory, warehouse, etc) not cleared for export and not loaded on any collecting vehicle.
FCA – Fre Carrier (named place of delivery)
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at the place. If delivers occurs at the seller’s premises, the seller is responsable for loading. If delivery occurs at any other place, the seller is not responsable for unloading.
FAS – Fre Alongside Ship (named port of shipment)
The seller delivers when the goods are placed alongside the vessel at the named port of shipment. The means that the buyer has to bear all costs and risks of loss or damage of the goods from that moment.
The FAS term requires the seller to clear the goods for export.
FOB – Fre on Board (named port of shipment)
The seller delivers when the goods pass the ship’s rail at the named port of shipment. The means that the buyer has to bear all costs and risks of loss or damage of the goods from that point.
The FOB terms requires the seller to clear the goods for export.
CFR – Cost and Freight (named port of destination)
The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss or damage to the goods, as well as any additional costs due to events occuring after the time of delivery, are transferred from the seller to the buyer.
The CFR terms requires the seller to clear the goods for export.
CIF – Cost, Insurence and Freight (named port of destination)
The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occuring after the time of delivery, are transferred from the seller to the buyer. In CIF the seller also has to procure marine insurance against the buyer’s risk of loff of or damage to the goods during the carriage. Conseguently, the seller contracts for insurance and pays the insurance premium.
The CIF terms requires the seller to clear the goods for export.
CPT – Carriage Paid to (named place of destination)
The seller delivers when the goods to the carrier nominated by him the seller must in additiona pay the cost of carriage necessary to bring the goods to the named destination. This mean that the buyer bears all risks and any other costs occuring after the goods have been so delivered. The CPT terms requires the seller to clear the goods for export.
CIP – Carriage and Insurence Paid to (named port of destination)
The seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This mean that the buyer bears all risks and any additional cost to the goods during the carriage. Conseguently the seller contracts for insurance and pays the insurance premium.
The CIP terms requires the seller to clear the goods for export.
DAT – Delivered at Terminal (named terminal at port or place of destination)
DAP – Delivered at Place (named place of destination)
The seller delivers the goods to the buyer not cleared for import, and not unloaded from any arriving means of trasport at the named place of destination. The seller has to bear costs and risks involved in bringing the goods thereto, other than, where applicable, any “duty” (whitch term includes the responsibility for and the risks of the carring out of the customs formalities, and the payment of formalities, customs duties, taxes and other changes) for import in the country of destination. Such “duty” has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time.
DDP – Delivered Duty Paid (named place of destination)
The seller delivers the goods to the buyer not cleared for import, and not unloaded from any arriving means of trasport at the named place of destination. The seller has to bear costs and risks involved in bringing the goods thereto including where applicable, any “duty” (whitch term includes the responsibility for and the risks of the carring out of customs formalities, customs duties, taxes and other changes) for import in the country of destination. Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximun obligation. This term should not be use if the seller is unableSuch “duty” has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time.
