INternational COmmercial TERMS

EXW
Ex Works (named place) – ‘Ex Works (In factory place)’.
The seller makes goods available to the buyer on their own premises: factory, warehouse, etc. All expenses from that time are on the buyers account. The EXW incoterm can be used with any type of transport or a combination of them (known as multimodal transport). The supplier is responsible for logistics and necessary for the buyer to take delivery of the product in the same place where plays the productive task transfer. This Incoterm suffered no change in relation to the Incoterms 2000.

FAS
Free Alongside Ship (named loading port) – ‘Free Alongside Ship (named port of shipment)’.
The seller delivers the goods on the quay of the agreed port of shipment; that is, the side of the boat. The FAS incoterm is typical of bulk goods or bulky cargo that are deposited in specialized port terminals, which are located on the dock. The seller is responsible for the efforts and costs of the office of export (in versions prior to Incoterms 2000, the purchaser organized export customs clearance).

FOB
Free On Board (named loading port) – ‘Free on Board (named port of shipment)’
The seller delivers the goods on the vessel. The buyer is responsible for appointing and reserve the main carrier (vessel) The FOB incoterm is one of the most used in international trade. Should be used for general cargo (drums, coils, containers, etc.) of goods, not usable for bulk. The FOB incoterm is used exclusively to transport by boat, either sea or river.

FCA
Free Carrier (named place) – ‘Free Carrier (agreed place)’.
The seller agrees to deliver the goods at an agreed point in the country of origin, which may be the premises of a freight forwarder, a railway station … (this place agreed to deliver the goods are usually associated with the spaces of the carrier) . It is responsible for the costs until the goods are located at the agreed point. The FCA incoterm can be used with any kind of transportation: air, rail, road and containerized / multimodal transport. However, it is an incoterm little used.

CFR
Cost and Freight (named destination port) – ‘Cost and Freight (agreed port of destination)’.
The seller is responsible for all costs, including freight to bring the goods to the port of destination. However, the risk is transferred to the buyer at the time the merchandise is loaded on the ship, in the country of origin. It should be used for general cargo, which is transported in containers; It is not suitable for bulk cargo. The CFR incoterm is only used to transport by boat, either sea or river.

CIF
Cost, Insurance and Freight (named destination port) – ‘Cost, Insurance and Freight (convenient port of destination)’.
The seller is responsible for all costs, including the main transport and insurance until the goods arrive at the port of destination. Although insurance has hired the seller, the insurance beneficiary is the buyer. As in the previous incoterm, CFR, the risk is transferred to the buyer at the time the merchandise is loaded on the ship, in the country of origin. The CIF incoterm is one of the most used in international trade because the conditions of a CIF price are what make the customs value of a product is imported. It should be used for general or conventional cargo. The CIF incoterm is exclusive to the marine environment .

CPT
Carriage Paid To (named place of destination) – ‘Carriage Paid to (place of destination agreed upon)’.
The seller is responsible for all costs, including freight to bring the goods to the agreed point in the country of destination. However, the risk is transferred to the buyer at the time of delivery of the goods to the carrier in the country. If multiple carriers are used to reach the destination, the risk passes when the goods have been delivered to the first hired company. The CPT incoterm can be used with any mode of transport including multimodal transport (combination of different types of transport to reach destination).

CIP
Carriage and Insurance Paid (To) (named place of destination) – ‘Transport and insurance paid to (named place of destination)’.
The seller is responsible for all costs, including the main transport and insurance until the goods arrive at the agreed point in the country of destination. The risk is transferred to the buyer at the time of delivery of the goods to the carrier in the country. Although insurance has hired the seller, the insurance beneficiary is the buyer. The CIP incoterm can be used with any mode of transport or a combination of them (multimodal transport).

DAT
Delivered At Terminal (named port) – “Delivered at Terminal (named port of destination) ‘.
The DAT incoterm is used for all types of transport. It is one of the two new Incoterms 2010 with DAP and replaces the DEQ incoterm. The seller is responsible for all costs, including the main transport and insurance (not mandatory), until the goods are unloaded at the agreed terminal. It also assumes the risks so far. The terminal concept is quite broad and includes land and sea terminals, ports, airports, free zones, etc.) so it is important that the place of delivery of the goods is clearly specified and this place matches that specified in the contract of carriage. The Incoterm DAT was frequently used in international trade in bulk because the delivery point coincides with the bulk terminals of the ports (in versions prior to Incoterms 2000, with the Incoterm DEQ, payment of customs import was in charge Seller, in the current version, is paid by the buyer).

DAP
Delivered At Place (named destination place) – “Delivered at a point (place of destination) ‘.
The Incoterm DAP is used for all types of transport. It is one of the two new Incoterms 2010 with DAT. Incoterms replaces DAF, DES and DDU. The seller is responsible for all costs, including the main transport and insurance (not mandatory), but not the costs associated with imports, until the goods are made available to the buyer in a ready vehicle to be Discharged. It also assumes the risks so far.

DDP
Delivered Duty Paid (named destination place) – ‘Delivered Duty Paid (place of destination)’.
The seller pays all costs to leave the goods at the agreed point in the country of destination. The buyer does not perform any process. The import customs charges are paid by the seller. The type of transport is multipurpose / multimodal.