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INCOTERMS

 

The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

Incoterms are grouped into four categories:

  • E Terms - EXW. Departure. Under E terms, the Seller minimises the risk by only making the goods available at his own premises.
  • F Terms - FCA, FAS, FOB. Main Carriage Not Paid By Seller. Under F Terms the Seller arranges and pays for the pre-carriage in the country of export.
  • C Terms - CFR, CIF, CPT, CIP Main Carriage Paid By Seller. Under C Terms the Seller arranges and pays for the main carriage but without assuming the risk of the main carriage.
  • D Terms – DAT, DAP, DDP. Arrival. Under D Terms the Seller’s cost/risk is maximised because he must take the goods available upon arrival at the agreed destination.

 

Any mode of transport

 

 EXW. Ex Works (named place of delivery)

 

 FCA. Free Carrier (named place of delivery)

 

 CPT. Carriage Paid To (named place of destination)

 

 CIP. Carriage and Insurance Paid To (named place of destination)

 

 DAT. Delivered At Terminal (named terminal at port or place of destination)

 

 DAP. Delivered at Place (named place of destination)

 

 DDP. Delivered Duty Paid (named place of destination)

 
 

Sea and inland waterway transport

 

 FAS. Free Alongside Ship (named port of shipment)

 

 FOB. Free on Board (named port of shipment)

 

 CFR. Cost and Freight (named port of destination)

 

 CIF. Cost, Insurance and Freight (named port of destination)

 
Client Area
Canary Island Shipping Line