(English) Shipping Information
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International Trade Terms (INCOTERMS)To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the Buyer and seller including while the merchandise is in transit. This chart summarizes the responsibilities of both the Buyer and seller for each of the current 13 INCOTERMS. In addition, a definition for each term is included at the bottom of the page. For a more complete description of each of the INCOTERMS, The IBT Guide to INCOTERMS 2000/2010 book published by International Business Training fully and clearly defines each of the new INCOTERMS that became effective January 1, 2000, and includes a number of case studies that demonstrate the use of the different terms in real-life situations. * There are actually two FCA terms: FCA Seller’s Premises where the seller is responsible only for loading the goods and not responsible for inland freight; and FCA Named Place (International Carrier) where the seller is responsible for inland freight. ** FCL (full container load) export packing included. Special LTL (less than container or truckload) export “wooden box” packing not included. *** Insurance is usually optional and can be arranged by the seller if the buyer wishes (unless CIF or CIP is selected).
The 13 Incoterms Defined
- EXW – Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation.
International Carriage NOT Paid by Seller
- FCA – Free Carrier, unloaded at the seller’s dock OR a named place where shipment is available to the international carrier or agent, not loaded.This term can be used for any mode of transport.
- FAS – Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized.
- FOB – Free On Board vessel, named ocean port of shipment (can only be port of origin it cannot be destination port).This term is used for ocean shipments only where it is important that the goods pass the ship’s rail.
International Carriage Paid by the Seller
- CPT – Carriage Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.
- CFR – Cost and Freight, Named ocean port of destination. This term is used for ocean shipments that are not containerized.
- CIF – Cost, Insurance and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.
- CIP – Carriage and Insurance Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.
Arrival At Stated Destination
- DAF – Delivered At Frontier, named place of destination, by land, not unloaded. This term is used for any mode of transportation but must be delivered by land.
- DES – Delivered Ex-Ship, named port of destination, not unloaded. This term is used for ocean shipments only.
- DEQ – Delivered Ex-Quay, named port of destination, unloaded, not cleared.This term is used for ocean shipments only.
- DDU – Delivered Duty Unpaid, named place of destination, not unloaded, not cleared. This term is used for any mode of transportation.
- DDP – Delivered Duty Paid, named place of destination, not unloaded, cleared. This term is used for any mode of transportation.