THE FOLLOWING ARE THE INCOTERMS 2020 WHICH ARE GENERALLY USED
ORIGIN TERMS
The title and risk pass on to the buyer including the payment of all transportation and insurance cost from the seller’s point. It can be used for any mode of transport. Incoterms are worldwide accepted commercial terms that defines the respective roles of the buyer as well as of the seller in arrangement of the transportation and other responsibilities and it also clarifies when the ownership of the merchandise takes place. These incoterms are used in conjunction with a sales contract or other method of transacting the deal. EXW (EX-WORKS)
INTERNATIONAL CARRIAGE NOT PAID BY SELLER
The title and risk pass on to the buyer including the transportation and insurance cost if the seller delivers the goods cleared for export to the carrier. In this case the seller is obligated to load the goods on the buyer’s collecting vehicle but it is the buyer’s obligation to receive the seller’s arriving vehicle unloaded.FCA (FREE CARRIER)
The title and risk passes on to the buyer, included the transportation and insurance payment, once the goods delivered alongside shipby the seller. It is only used for the sea or inland waterway transportation and the export clearance obligation rests with the seller.
FAS (FREE ALONGSIDE SHIP)A
In FOB the risk passes to buyer, included the transportation and insurance payment, once delivered on board the ship by the eller. It is only used for sea or inland waterway transportation. FOB (FREE ON BOARD) INTERNATIONAL CARRIAGE PAID BY THE SELLERA In FOB the risk passes to buyer, included the transportation and insurance payment, once delivered on board the ship by the seller. It is only used for sea or inland waterway transportation.
CFR (COST AND FREIGHT)
The title and risk passes on to the buyer if delivered on board the ship by the seller who paid the transportation and insurance cost to the destination port. It is used for sea or inland waterway transportation.
CIF (COST, INSURANCE AND FREIGHT)
The title, risk and insurance cost passes to the buyer if the goods delivered to carrier by the seller who pays transportation cost to the destination. It can be used for any mode of transportation.
CPT (CARRIAGE PAID TO)
The title and risk passes to the buyer if the goods are delivered to carrier by the seller and he pays transportation and insurance cost to destination. It can be used for any mode of transportation.
CIP (CARRIAGE AND INSURANCE PAID TO)
The title and risk passes to the buyer if the goods are delivered to carrier by the seller and he pays transportation and insurance cost to destination. It can be used for any mode of transportation.
ARRIVAL AT STATED DESTINATION
The title, risk and responsibility for the import clearance passes on to the buyer if the goods are delivered to named border point by the seller. It can be used for any mood of transportation.
DAF (DELIVERED AT FRONTIER)
The title, risk, responsibility for the vessel discharge and the import clearance passes on to the buyer when the seller delivers it on board the ship to destination port. It is used for sea or inland waterway transportation.
DES (DELIVERED EX SHIP)
The title and risk passes to the buyer if the goods are delivered on board the ship at the destination point by the seller who on his part delivers the goods on dock at the destination point cleared for import. It is used for sea or inland waterway transportation.
DEQ (DELIVERED EX QUAY-DUTY PAID)
The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
DAP (DELIVERED AT PLACE)
The title and risk passes on to the buyer when the seller delivers the goods to the named destination point cleared for the import. It is also used for any mode of transportation.
DDP (DELIVERED DUTY PAID)
DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination. The seller bears all risks involved in bringing the goods to, and unloading them at the named place of destination.
DPU (DELIVERED AT PLACE UNLOADED)
