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Inco Terms are also commonly called 'Terms of Sale'. This determines when the responsibilty is transfered from the seller to the buyer etc. For more information please contact a member of the Jenkar documentation team.
EXW - ExWorks
Named place - Any mode of transport
The seller must place the goods at the disposal of the buyer at the seller's premises or another named place not cleared for export and not loaded on any collecting vehicle
FCA - Free Carrier
Named place - Any mode of transport
The seller must deliver the goods, cleared for export, to the carrier nominated by the buyer at the named place.
FAS - Free Alongside Ship
Named port of shipment - Maritime and inland waterway transport only
The seller must place the goods, cleared for export, alongside the vessel at the named port of shipment.
FOB - Free on Board
Named port of shipment - Maritime and inland waterway transport only
The seller delivers the goods, cleared for export, when they pass the ship's rail at the named port of shipment.
CFR - Cost and Freight
Named port of destination - Maritime and inland waterway transport only
The seller delivers the goods when they pass the ship's rail in the port of shipment and must pay the costs and freight necessary to bring the goods to the named port of destination. The buyer bears all additional costs and risks after the goods have been delivered (over the ship's rail at the port of shipment).
CIF - Cost Insurance and Freight
Named port of destination - Maritime and inland waterway transport only
The obligations are the same as under CFR with the addition that the seller must procure insurance against the buyer's risk of loss of, or damage to the goods during carriage.
CPT - Carriage Paid To
Named place of destination - Any mode of transport
The seller delivers the goods to the nominated carrier and must also pay the cost of carriage necessary to bring the goods to the named destination. The buyer bears all additional costs and risks after the goods have been delivered to the nominated carrier.
CIP - Carriage and Insurance Paid To
Named place of destination - Any mode of transport
The obligations are the same as under CPT with the addition that the seller must procure insurance against the buyer's risk of loss of, or damage to the goods during carriage.
DAF - Delivered at Frontier
Named place - Any mode of transport
The seller must place the goods at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export but not cleared for import, at the named point and place at the frontier.
DES - Delivered Ex Ship
Named port of destination - Maritime and inland waterway transport only
The seller delivers when the goods are placed at the disposal of the buyer on board the ship, not cleared for import, at the named port of destination.
- Delivered Ex Quay
Named port of destination - Maritime and inland waterway transport only
The seller delivers when the goods are placed at the disposal of the buyer, not cleared for import, on the quay at the named port of destination.
DDU - Delivered Duty Unpaid
Named place of destination - Any mode of transport
The seller must deliver the goods to the buyer, not cleared for import, and not unloaded at the named place of destination.
DDP - Delivered Duty Paid
Named place of destination - Any mode of transport
The seller must deliver the goods to the buyer, cleared for import, and not unloaded at the named place of destination.
As can be seen this list runs from the term where the buyer has most of the responsibility (EXW) through to that where the seller has the majority of the responsibility (DDP). It is worth noting that in Incoterms 2000 the only term that requires the buyer to clear the goods for export (including obtaining any export licence necessary) is EXW and the only term that requires the seller to clear the goods for import (including obtaining any import licence necessary) is DDP. |
