INCOTERM

Definition

Obligations of the parties

Obligations of the seller

Obligations of the buyer

EXW

Ex works (named place)

To deliver the merchandize
at seller’s premises without
loading them.

Choose transport. Asume all transport risks and insurance costs, including tracking, claims, etc. Customs clear the cargo for export.

FCA

Free Carrier (named place)

Deliver the merchandize to the carrier designated by the buyer at the placed agreed. Customs clear the cargo for export.

Choose mean of transportation and carrier. Assume all risks and expenses the from the carrier takes over the goods and the place agreed.

FAS

Free Alongside Ship (named loading port)

To deliver alongside ship at loading port, with cargo already cleared for export. It does not include to load on board. At that moment and place the seller responsibilities end.

Choose shipping company/vessel and provide their names to the seller. Pay freight and assume al risks as from the moment the seller delivers the cargo alongside ship.

FOB

Free On Board (named loading port)

To deliver the cargo on board of the ship designated by the buyer, at the agreed port of loading. Customs clear cargo for export.

Book and designate the ship. Assume all risks and expenses as from the goods pass the ship’s rail.

CFR

Cost and Freight (named port of destination)

To book and designate the ship, loading of the good on board and its transportation to the named port of destination. Customs clear cargo for export.

Assume all risks, loses or damages as well as insurance costs after the cargo pass ship’s rail.

CIF

Cost, Insurance and Freight (named destination port)

Book sand designate the ship, pay freight and charges to the port of destination. Customs clear the goods. Contract and pay a transportation insurance policy for a minimum of 110% of the value of the goods.

Nevertheless the seller contracts the and pays the insurance, the goods are transported at the risk of the buyer, who is the beneficiary of the insurance policy for direct designation or its transferrability.

CPT

Carriage Paid To (named place of destination)

Contract and pay the transportation the named place. Customs clear the cargo for export.

Assume all inherently risks from the moment the good are delivered to the first carrier, as well as any other additional costs in transit (loading, discharge, damages, etc.)

CIP

Carriage and Insurance Paid to (named place of destination)

Contract and pay the transportation to the named place. Customs clearance for export. Contract an insurance policy for a minimum of 110% of the value of the goods.

Assume the risks inherent to the merchandize as from the seller delivers it to the first carrier, as well as any adicional expenses in transit (loading, unloading, damages, etc.

DAT

Delivered At Terminal (named port)

Deliver the goods once discharged from the mean of transportation at terminal. Make available the goods at the designated terminal at the port named port or place of destination (terminal includes any place, covered or not, pier, warehouse, road or rail airport. Assume al the risks involved in bringing the goods to the terminal.

The buyer assumes all cargo expenses and risks as from the moment it has been delivered as agreed.

DAP

Delivered At Place (named place of destination)

“Delivery at place” means that the seller delivers when the goods are made available on the transport ready to be unloaded at the named place of destination. Seller contracts and pays the transportation up to the named place. Seller assume the risks of loss or damage until the moment of delivery at named place.

Assume the risk of loss or damage as from delivery at named place.

DDP

Delivered Duty Paid (named destination place)

Deliver the goods to the buyer on his own account at named place in the buyers country, including unloading . Customs clear the good for exportation and importation. This term represents the maximum obligations for the seller.

Assume the risk of loss or damage and all costs after the cargo as been delivered at the named destination place.