Incoterms

This page is designed to provide a basic level of understanding of Incoterms ® 2020 Rules published by the International Chamber of Commerce (ICC)

Shipping:

Duties:

Insurance:

EXW

Ex Works

The seller makes the goods available to the buyer at the seller's premises or...

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The seller makes the goods available to the buyer at the seller's premises or at another named place. The seller is not responsible for loading the goods onto a transporting vehicle or clearing them for export customs.

FCA

Free Carrier

The seller delivers the goods to the carrier nominated by the buyer. The seller...

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The seller delivers the goods to the carrier nominated by the buyer. The seller is responsible for loading the goods onto the transporting vehicle, clearing them for export customs, and paying the cost of carriage to the named place of destination.

CPT

Carriage Paid To

The seller arranges the delivery to the indicated place and includes it in...

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The seller arranges the delivery to the indicated place and includes it in the goods price. As a rule, such a place is a terminal where ocean carriers (shipping line) can accept cargo for further transportation.

CIP

Carriage and Insurance Paid To

Same as CPT but insurance is added for the seller's account on a definite part...

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Same as CPT but insurance is added for the seller's account on a definite part of the route. The shipping section covered by insurance, can be any.

DAP

Delivered At Place

Supplier has organized land delivery, completed port formalities, performed loading on ship’s board...

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Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, discharging, completed port formalities, and paid land transport to the address of the consignee for subsequent customs procedures.

DPU

Delivered At Place Unloaded

Supplier has organized land delivery, completed port formalities, performed...

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Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, and discharging.

DDP

Delivered Duty Paid

Same as the DPU, but supplier additionally completed port formalities...

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Same as the DPU, but supplier additionally completed port formalities, paid land transport to the address of the consignee, along with import customs duties in consideration of the cargo value, taking into account transport costs

FAS

Free Alongside Ship (named port of shipment)

The goods are considered delivered by the seller when they are placed alongside...

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The goods are considered delivered by the seller when they are placed alongside the ship (e.g., at the quayside or on a barge) nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are placed alongside the ship, and from that point on the buyer bears responsibility for all costs.

FOB

Free On Board

Supplier has organized land delivery, completed port formalities and performed loading on the ship's...

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Supplier has organized land delivery, completed port formalities and performed loading on the ship's board.

CFR

Cost and Freight

The seller delivers the goods on board the ship. The risk of loss or damage to the goods passes from...

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The seller delivers the goods on board the ship. The risk of loss or damage to the goods passes from the seller to the buyer when the goods are on board the ship. The seller must arrange and pay for all costs and freight necessary to bring the goods to the named port of destination.

CIF

Cost, Insurance and Freight

The same as CFR, but insurance is added for the seller's account on a definite part of the route...

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The same as CFR, but insurance is added for the seller's account on a definite part of the route. The shipping section covered by insurance, can be any.

International Commercial Terms (Incoterms®) are standard terms used in international trade to define the rights and obligations of the seller and buyer with respect to the delivery of goods. They were developed by the International Chamber of Commerce (ICC) in 1936 and are regularly updated. The current version, Incoterms® 2020, came into effect on January 1, 2020.
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Incoterms® are divided into three categories:

Ex Works (EXW) - The seller has fulfilled their obligations when they make the goods available to the buyer at their premises or at another named place.

Free Carrier (FCA) - The seller delivers the goods to the carrier nominated by the buyer.

Carriage Paid (CFR, CIF, CPT, CIP) - The seller delivers the goods to the carrier nominated by the seller and bears all costs and risks associated with the delivery of the goods to the destination.

Incoterms® are an important tool for international trade because they help to align the rights and obligations of the seller and buyer. They also help to avoid misunderstandings and disputes that can lead to delivery delays, additional costs, or even lawsuits.

More information about the Incoterms® rules can be found on the official website of the International Chamber of Commerce: https://iccwbo.org.

Useful information:

Parameters of sea containers:

20' Standard

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20' Standard

40' Standard

40' High-Cube

45' High-Cube

20' Open-Top

40' Open-Top

20' Flatrack

40' Flatrack

20' Flatrack Collapsible

40' Flatrack Collapsible

20’ Platform

40’ Platform

20’ Refrigerated

40’ Refrigerated

20’ Bulk

20’ Tank

45’ Pallet Wide

Demi

HMA stall

LD-1

LD-11

LD-2

LD-9 Reefer

LD-4

LD-7 with Folding Wings

LD-7 with Angled Wings

LD-39

M-1H

LD-29 Reefer

LD-3 Reefer

LD-26

LD-29

LD-3

M-2

MDP

M-1

M-6 (118"H)

LD-8

LD-7

M-6

Type A Pen

PNA Half Pallet

PLA Half Pallet

PMC/P6P Pallet

LD-9

M-6 Twin Car Rack

LD-6

Incoterms

Useful information:

Parameters of sea containers:

Uld Container Types: