The fundamental objective of Incoterms consists in establishing defined criteria on the distribution of costs and transmission of the risks in an international sales contract

EXW
"EX WORK"
The seller is obliged to make wares available to the buyer at their establishment or agreed place (factory, workshop, warehouse, etc) without dispatching for exportation nor effecting the cargo in the receptor vehicle, concluding its obligations.

FCA
"FREE CARRIER"
The seller delivers the goods and shipped for export to the carrier nominated by the buyer at the named place. The chosen place of delivery determines the obligations of loading and unloading the goods at that place: if the delivery occurs at the seller's premises, the seller is responsible for loading; if delivery occurs at any other place, the seller is not responsible for the download.

FAS
"FREE ALONGSIDE SHIP"
The delivery of goods is made when it’s placed by the seller to the shide of then ship at the port of shipment. All costs of loss or damage to the wares are borne by the buyer. This incoterm requires the seller to clear the goods for export .
 
FOB
"FREE ON BOARD"
The seller is obligated to load the goods on board the vessel at the port of shipment specified in the sales contract. The buyer selects the ship and pays the ocean freight. The transfer of risks and expenses occurs when the goods exceeds the ship's rail. The seller is responsible for export formalities.

CFR
"COST AND FREIGHT"
The seller pays for transportation and other expenses necessary for the goods to the named port, although the risk of loss or damage to the goods is transferred from seller to buyer once this has been delivered on board the vessel at the port of boarding and have pierced the side of it. It also requires the seller to clear the goods for export. Insurance is the responsibility of the buyer.

CIF
"COST, INSURANCE AND FREIGHT"
The seller has the same obligations as under CFR but also has to hire and pay the premium maritime insurance coverage for loss or damage to the goods during transport, also seized, the clearance of goods in acuana for export.

CPT
"CARRIAGE PAID TO…"
The seller pays the freight and transports the goods to the named place of destination. The risk of loss or damage is transferred from seller to buyer when the goods have been delivered into the custody of the first carrier named by the seller, if there are several. Customs clearance of export is performed by the vendor.

CIP
"CARRIAGE AND INSURANCE PAID TO…"
This term requires the seller in the same way that the CPT and must also purchase insurance and pay a bonus to cover loss or damage to the goods during transport, although it is only required to obtain insurance on minimum cover.

DAF
"DELIVERED AT FRONTIER"
The seller fulfills his obligation when, once dispatched, the goods at customs for export delivery to the point and place of the border, before passing the customs border of the adjoining country without unloading responsibility. It is vital the term “frontier” is accurately defined.

DES
"DELIVERED EX SHIP"
The goods are set by the seller to the buyer on board the vessel at the port of destination, without actually dispatching it in customs for import. The seller bears the costs and risks of transporting the goods to the port of destination, but no discharge. It is only used when the transport is by sea.

DEQ
"DELIVERED EX QUAY" (Entregado en muelle)
The seller fulfills his obligation to deliver when the goods are placed at the disposal of the buyer on the quay and once unloaded at the port of destination. This term is required to perform the customs clearance of the goods for import buyer. Only used in shipping.

DDU
"DELIVERED DUTY UNPAID"
The seller delivers the goods to the buyer at the named place in the country of the buyer, not cleared for import customs and not unloaded from the means of transport at arrival at that place. The DDU term can be used in any mode of transportation. The seller has to bear all costs and risks involved in bringing the goods to the named place. The buyer has to pay any additional costs and to bear the risks in case of failure to clear the goods for import in due time.

DDP
"DELIVERED DUTY PAID" (Entregado con pago de derechos)
In this term the seller delivers the goods to the buyer, cleared for import and not unloaded from the means of transport on arrival at the named place in the country of importation. Seller assumes all costs and risks, including duties, taxes and other charges for bringing the goods thereto, once cleared for import.

 

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