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Incoterms delivery conditions

Incoterms delivery conditions

All types of transport

International Trade Terms (INCO Terms) are a set of rules that the International Chamber of Commerce has designed and compiled (last updated in 2000). The purpose of these rules is to define the role and obligations (financial and liability) between Sellers and Buyers that are involved in an international COMMERCIAL transaction involving the transport of goods from one place to another. The purpose of these rules is to define the role and obligations (financial and liability) between Sellers and Buyers that are involved in an international COMMERCIAL transaction involving the transport of goods from one place to another.

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EXW (EX WORKS)
Description:
The product and the risks are transferred to the buyer, including the payment of the transport and the cost of insurance at the seller's factory gate. It is the most convenient delivery condition for the seller who has to make the packaged goods available to the buyer, who is obliged to load it at his expense and risk.
FCA (Free Carrier)
Description:
Free shipping means that the seller fulfills his obligation to deliver when he has delivered the goods cleared for export, in the care of the carrier designated by the buyer at the agreed place or point. If the buyer does not indicate a specific point, the seller may choose the point at the said territorial place or area where the carrier is to take the goods into his custody. If, according to commercial practice, the support of the seller is required for the conclusion of the contract with the carrier (as is the case in CFR or air transport). The seller acts at the risk and expense of the buyer.
CPT (Carriage Paid To)
Description:
The seller pays for the transport of the goods to the agreed destination. The risks of loss or damage to the goods, as well as any other additional costs caused by events that occurred after the goods were handed over to the carrier, pass from the seller to the buyer when the goods were handed over to the carrier. If successive carriers are used to transport the goods, the risks pass from the seller to the buyer when the goods were handed over to the first carrier. The term CPT implies the seller's obligation to clear the goods for export. This term can be used for all modes of transport, including multimodal transport.
CIP (Carriage and Insurance Paid)
Description:
The seller has the same obligations as at the CPT term but in addition he must perform the insurance to cover the risk of loss or damage to the goods during transport. The seller concludes the contract and pays the insurance premium. The buyer should note that in the case of CIP the seller is obliged to obtain the insurance premium for minimum coverage. The term CIP implies the seller's obligation to clear the goods for export. This term can be used for all modes of transport, including multimodal transport.
DAT (Delivered at Terminal)
Description:
The seller delivers and unloads from the means of transport to the terminal (port or place) established with the buyer. Terminal means any place, such as: keys, warehouse, street, cargo terminal, CFR terminal. The seller covers all costs for delivery and unloading of goods at the established terminal. It is recommended that the notion of Terminal be very well specified. DAT covers export customs clearance formalities but does NOT include the cost of import customs clearance formalities.
DAP (Delivered at Place)
Description:
The seller delivers the goods in the appropriate means of transport to the place agreed with the buyer. The seller covers all costs for delivery and unloading of goods at the established terminal. It is recommended that the notion of Terminal be very well specified. If the seller bears the costs of unloading the goods at the landfill, he is not entitled to re-bill these costs to the buyer. It is recommended that the notion of LOC be very well specified. The DAP covers export customs clearance formalities but does NOT include the cost of import customs clearance formalities.
DDP (Delivered Duty Paid)
Description:
The seller fulfills his obligation to deliver when the goods have been made available to the buyer at the agreed place in the importing country. The seller must bear all costs and risks associated with bringing the goods to this place, including customs duties, other official duties and charges payable on importation, as well as the costs and risks of completing customs formalities. This term can be used regardless of the mode of transport.

Sea and land transport

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FAS (Free Alongside Ship)
Description:
The seller fulfills his obligation to deliver when the goods have been placed along the vessel, on quays or on wharves, barges or ferries, in the agreed port of loading. This means that all costs and risks of loss or damage to the goods are borne by the buyer at that time. The term FAS implies the buyer's obligation to clear the goods for export and should not be used if the buyer cannot directly or indirectly complete the export formalities. This term may only be used for maritime or inland waterway transport.
FOB (Free On Board)
Description:
The seller fulfills his obligation to deliver when the goods have passed the railing of the vessel, in the agreed port of loading. The costs and risks of loss and damage to the goods are borne from that moment by the buyer. The term FOB implies the seller's obligation to clear the goods for export. This term may only be used for maritime or inland waterway transport. If the vessel's railing is not relevant, such as in the case of roll-on / roll-off or containerized traffic, it is more appropriate to use the term FCA.
CFR (Cost & Freight)
Description:
The seller must pay the freight and the costs necessary to bring the goods to the agreed port of destination, but the risk of loss or damage to the goods, as well as any additional costs caused by events that occurred after the goods were delivered on board the ship. transfers from the seller to the buyer the moment the goods pass the vessel railing in the port of loading. The term C.F.R implies the seller's obligation to clear the goods for export. If the vessel railing is not relevant as in the case of roll-on / roll-off or containerized traffic it is more appropriate to use the term CPT.
CIF (Cost, Insurance and Freight)
Description:
The seller has the same obligations as in the case of the CFR term but in addition, he must carry out the maritime insurance that covers the risk of the buyer of the loss or damage of the goods during the maritime transport. The seller concludes and pays the insurance contracts and pays the insurance premium. The buyer notes that in the case of the CIF term, the seller is obliged to obtain insurance for the minimum coverage. The term CIF implies the seller's obligation to clear the goods for export. If the vessel railing is not relevant as in the case of roll-on / roll-off or containerized traffic it is more appropriate to use the term CIP.

EXW (EX WORKS)

FCA (Free Carrier)

CPT (Carriage Paid To)

CIP (Carriage and Insurance Paid)

DAT (Delivered at Terminal)

DAP (Delivered at Place)

DDP (Delivered Duty Paid)

FAS (Free Alongside Ship)

FOB (Free On Board)

CFR (Cost & Freight)

CIF (Cost, Insurance and Freight)

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