incotermsP R E S E N T E D B Y Y O U R

freight people

C R E A T E D I N 1 9 3 6 B Y T H E I N T E R N A T I O N A L C H A M B E R O F C O M M E R C E

( I C C ) , I N T E R N A T I O N A L C O M M E R C I A L T E R M S ( ‘ I N C O T E R M S ’ ) A R E

I N T E R N A T I O N A L L Y R E C O G N I Z E D S T A N D A R D T R A D E T E R M S U S E D

I N S A L E S C O N T R A C T S .

I N C O T E R M S A R E U S E D T O G U A R A N T E E T H A T T H E

B U Y E R & S E L L E R K N O W …

1. who is responsible for the cost of transporting the goods, including insurance, taxes, and duties; and

2. where the goods should be picked up and transported to.

overview

ex works

free carrier

carriage paid to

carriage & insurance

paid to

deliveredat

terminal

delivery at place

delivered duty paid

free alongside

ship

free on board

cost & freight

cost insurance & freight

incoterms

T H E S E L L E R M A K E S T H E G O O D S A V A I L A B L E T O B E C O L L E C T E D A T

T H E I R P R E M I S E S .

T H E B U Y E R I S R E S P O N S I B L E F O R A L L

O T H E R R I S K S , T R A N S P O R T A T I O N C O S T S ,

T A X E S A N D D U T I E S F R O M T H A T

P O I N T F O R W A R D .

exworks (exw)

T H E S E L L E R D E L I V E R S T H E G O O D S T O T H E C A R R I E R O R A N O T H E R P A R T Y

N O M I N A T E D B Y T H E S E L L E R A T A N A G R E E D P L A C E .

T H E S E L L E R M U S T C O N T R A C T A N D P A Y T H E C O S T S O F C A R R I A G E N E C E S S A R Y

T O B R I N G T H E G O O D S T O T H E N A M E D P L A C E O F D E S T I N A T I O N .

carriage paid to (cpt)

I D E N T I C A L T O C P T B U T T H E

S E L L E R M U S T I N S U R E T H E F R E I G H T .

cip is used for goods being transported by more than one mode of transport; but if the container is transporting only by sea, cif is used instead.

carriage & insurance paid

to (cip)

T H E S E L L E R P A Y S T H E T R A N S P O R T A T I O N T O A S P E C I F I E D T E R M I N A L A T

T H E A G R E E D D E S T I N A T I O N .

T H E B U Y E R I S R E S P O N S I B L E F O R T H E C O S T O F I M P O R T I N G T H E G O O D S

A N D T A K E S R E S P O N S I B I L I T Y O N C E T H E G O O D S A R E U N L O A D E D A T T H E

T E R M I N A L .

delivered at terminal (dat)

T H E S E L L E R P A Y S F O R T H E T R A N S P O R T A T I O N T O T H E B U Y E R ’ S D O O R ,

W H I L E T H E B U Y E R P A Y S T H E C O S T O F I M P O R T I N G T H E G O O D S ( C U S T O M S

C L E A R A N C E , I S F , D U T I E S A N D T A X E S ) .

T H E S E L L E R M A I N T A I N S R E S P O N S I B I L I T Y O F T H E G O O D S U N T I L T H E Y

A R E U N L O A D E D A T T H E B U Y E R ’ S D O O R .

delivered at place (dap)

T H E S E L L E R I S R E S P O N S I B L E F O R D E L I V E R I N G T H E G O O D S T O A N A M E D

D E S T I N A T I O N I N T H E B U Y E R ’ S C O U N T R Y O R T H E B U Y E R ’ S D O O R ,

I N C L U D I N G A L L C O S T S I N V O L V E D ( T R A N S P O R T A T I O N , D U T I E S , T A X E S ,

I S F , C U S T O M S C L E A R A N C E A N D H A N D L I N G F E E S ) .

delivered duty paid (ddp)

T H E S E L L E R D E L I V E R S T H E I T E M S A L O N G S I D E T H E S H I P A T T H E

S P E C I F I E D P O R T T H E Y W I L L B E S H I P P E D F R O M .

T H E S E L L E R M U S T P R E P A R E T H E I T E M S R E A D Y F O R E X P O R T , B U T T H E

B U Y E R I S R E S P O N S I B L E F O R T H E C O S T A N D R I S K I N V O L V E D I N

L O A D I N G T H E M .

sap is commonly used for heavy-lift or bulk cargo,butnot for goods transported in containers by more than

one mode of transport (fca is used).

free alongside ship (sap)

T H E S E L L E R M U S T P R E P A R E T H E G O O D S F O R E X P O R T A N D L O A D

T H E M O N T O A S P E C I F I E D V E S S E L N O M I N A T E D B Y T H E B U Y E R .

T H E R I S K P A S S E S W H E N T H E G O O D S A R E O N B O A R D T H E V E S S E L ,

A N D T H E B U Y E R B E A R S A L L C O S T S F R O M T H A T M O M E N T F O R W A R D .

free on board (fob)

T H E S E L L E R M U S T P A Y T H E C O S T O F T R A N S P O R T I N G

T H E G O O D S T O A S P E C I F I E D P O R T .

T H E B U Y E R I S R E S P O N S I B L E F O R R I S K S W H E N T H E

G O O D S A R E L O A D E D O N T O T H E S H I P .

cost & freight (cfr)

T H E S E L L E R M U S T P A Y T H E C O S T O F T R A N S P O R T I N G T H E G O O D S T O A

S P E C I F I E D P O R T . T H E Y A L S O P A Y F O R I N S U R A N C E .

T H E B U Y E R I S R E S P O N S I B L E F O R R I S K S W H E N T H E G O O D S A R E L O A D E D

O N T O T H E S H I P .

cost insurance & freight (cif)

we speak freight.B O T T O M L I N E ,

G R E E N W O R L D W I D E S H I P P I N G

I S A T E C H N O L O G Y - F O R W A R D

P R O V I D E R O F I N T E R N A T I O N A L

S U P P L Y C H A I N S E R V I C E S .

E M P O W E R I N G O U R F R E I G H T

E X P E R T S T O P O W E R Y O U R F R E I G H T .

P R I V A T E L Y - O W N E D ,

T O B E E F F E C T I V E L Y M A N A G E D .

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