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Incoterms for International Trade
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Flashcards
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EXW (Ex Works)
The seller makes the goods available at their premises. The buyer is responsible for all transportation costs, export and import duties, insurance, and any other expenses involved in shipping the goods from the seller's premises to their destination.
FCA (Free Carrier)
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the seller's location or another named place. The buyer is responsible for the international transportation costs and risks.
CPT (Carriage Paid To)
The seller pays for the goods to be transported to an agreed destination, and the risk transfers to the buyer once the goods are handed over to the first carrier.
CIP (Carriage and Insurance Paid to)
The seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
DPU (Delivered at Place Unloaded)
The seller delivers and unloads the goods at the named place of destination. The seller bears all risks involved in bringing the goods to and unloading them at the destination point.
DAP (Delivered at Place)
The seller is responsible for all costs and risks associated with delivering the goods to the named place of destination, ready for unloading by the buyer.
DDP (Delivered Duty Paid)
The seller assumes all the responsibility, risks, and costs associated with delivering the goods to the named place of destination, including import duties and taxes.
FAS (Free Alongside Ship)
The seller is responsible for the cost and risk to deliver goods alongside the ship at the named port of shipment.
FOB (Free on Board)
The seller bears all costs and risks until the goods are loaded onto the ship. The buyer assumes risk and costs thereafter, including marine freight transportation, insurance, and unloading.
CFR (Cost and Freight)
The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but risk is transferred to the buyer once the goods are loaded on the ship.
CIF (Cost, Insurance, and Freight)
The seller has the same obligations as under CFR, but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage.
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