Incoterms

Incoterms are a set of standardized trade terms that are commonly used in international transactions. The word « Incoterms » stands for International Commercial Terms. These terms are developed and maintained by the International Chamber of Commerce (ICC), which is an organization that promotes international trade and commerce. 

Incoterms define the rights and obligations of the buyer and seller in an international transaction, including who is responsible for paying for the goods, arranging for transportation, and insuring the goods. There are 11 different Incoterms, and each one specifies different responsibilities for the buyer and seller. 

Here is a brief overview of the 11 Incoterms: 

1. EXW (Ex Works): The seller makes the goods available at their premises, and the buyer is responsible for all costs and risks associated with the goods from that point onward. 

1. FCA (Free Carrier): The seller delivers the goods to a carrier designated by the buyer at a named place. The buyer is responsible for all costs and risks associated with the goods from that point onward. 

1. FAS (Free Alongside Ship): The seller delivers the goods to a named port of shipment, and the goods are placed alongside the vessel. The buyer is responsible for all costs and risks associated with the goods from that point onward. 

1. FOB (Free on Board): The seller delivers the goods on board a vessel at a named port of shipment. The buyer is responsible for all costs and risks associated with the goods from that point onward. 

1. CFR (Cost and Freight): The seller delivers the goods on board a vessel at a named port of shipment and pays the cost of freight to transport the goods to the port of destination. The buyer is responsible for all costs and risks associated with the goods from the port of destination onward. 

1. CIF (Cost, Insurance, and Freight): The seller delivers the goods on board a vessel at a named port of shipment and pays the cost of freight and insurance to transport the goods to the port of destination. The buyer is responsible for all costs and risks associated with the goods from the port of destination onward. 

1. CPT (Carriage Paid To): The seller delivers the goods to a carrier designated by the buyer at a named place, and pays the cost of transportation to the destination. The buyer is responsible for all costs and risks associated with the goods from the destination onward. 

1. CIP (Carriage and Insurance Paid To): The seller delivers the goods to a carrier designated by the buyer at a named place, and pays the cost of transportation and insurance to the destination. The buyer is responsible for all costs and risks associated with the goods from the destination onward. 

1. DAP (Delivered At Place): The seller delivers the goods to a named place of destination, and is responsible for all costs and risks associated with delivering the goods to that destination. 

1. DPU (Delivered at Place Unloaded): The seller delivers the goods to a named place of destination and unloads them at that location. The buyer is responsible for all costs and risks associated with the goods from that point onward. 

1. DDP (Delivered Duty Paid): The seller delivers the goods to a named place of destination and is responsible for all costs and risks associated with delivering the goods, including paying any customs duties or taxes.