Incoterms
Incoterms, short for International Commercial Terms, are a set of standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of buyers and sellers in international trade transactions. These terms are widely used in contracts for the sale of goods and help clarify the allocation of risks, costs, and responsibilities between parties involved in the transaction.
These are just a few examples of Incoterms, and there are others such as FCA (Free Carrier), CFR (Cost and Freight), DPU (Delivered at Place Unloaded), and more. It’s essential for parties involved in international trade to carefully select the appropriate Incoterms based on their specific requirements and negotiate terms that best suit their interests and obligations.
Incoterms
Incoterms, short for International Commercial Terms, are a set of standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of buyers and sellers in international trade transactions. These terms are widely used in contracts for the sale of goods and help clarify the allocation of risks, costs, and responsibilities between parties involved in the transaction.
These are just a few examples of Incoterms, and there are others such as FCA (Free Carrier), CFR (Cost and Freight), DPU (Delivered at Place Unloaded), and more. It’s essential for parties involved in international trade to carefully select the appropriate Incoterms based on their specific requirements and negotiate terms that best suit their interests and obligations.
| Incoterms | Load to truck | Export- duty payment | Transport to exporter’s port | Unload from truck at port of origin | Landing charges at port of origin | Transport to importer’s port | Landing charges at importer’s port | Unload onto trucks from the importers’ port | Transport to destination | Insurance | Entry – Customs clearance | Entry – Duties and Taxes |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
EXW |
No |
No |
No |
No |
No |
No |
No |
No |
No |
No |
No |
No |
|
FCA |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
No |
No |
No |
|
FAS |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
No |
No |
|
FOB |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
|
CFR |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
Yes |
No |
No |
|
CIF |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
|
CPT |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
|
CIP |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
|
DAF |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
|
DES |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
No |
|
DEQ |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
No |
|
DDU |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
No |
|
DDP |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
Yes |
Yes |