INCOTERMS  Rules

'international terms of trade. "Are terms of three letters each reflecting the standards of voluntary acceptance by both parties, buyer and seller-about the terms of delivery of goods, products. Are used to clarify the costs of international business transactions, defining responsibilities between buyer and seller and reflect current practice in the international freight.

Incoterms determine

· The scope of the price.

· At what point and where the transfer of risks on goods from the seller to the buyer occurs.

· The place of delivery of the goods.

· Who hires and pays transportation

· Who hires and pays the insurance

· What documents handled each part and its cost.

CFR (Cost and Freight) - Cost and Freight (named port of destination)

Obligations of Seller.

· Deliver merchandise and necessary documents

· Packing and Packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight (of export place to the import place)

  Buyer's obligations.

· Payment of Goods

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

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

Obligations of Seller.

· Deliver merchandise and necessary documents

· packaging and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight and sure (of export place to the import place)

Buyer's obligations.

· Payment of goods

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Delays

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

Seller's Obligations

· Give the merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight and sure (of export place to the import place)

· Import expenses (you maneuver, storage, agents) "Partial"

Obligations of the Buyer

· Payment of goods

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Import expenses (you maneuver, storage, agents) "Partial"

· Delays

CPT (Carriage Paid To) - Transportation Paid To (named place of destination)

Seller's Obligations

· Give the merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight (of export place to the import place)

· Import expenses (you maneuver, storage, agents) "Partial"

Obligations of the Buyer

· Payment of goods

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Import expenses (you maneuver, storage, agents) "Partial"

· Delays

DAF (Delivered At Frontier) - You Delivered At Frontier (named place)

Seller's Obligations

· Deliver merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight (of export place to the import place) (partial)

· Security (partial)

  Obligations of the Buyer

· Pgos of Goods

· Freight (of export place to the import place) (partial)

· Security (partial)

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Delays

DDP (Delivered Duty Paid) - Delivered Duty Paid (named place of destination)

Obligations of the seller

· Deliver merchandise and necessary documents

· Packing and packaging

· Hauling (factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight (of export place to the import place)

· Insurance

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Hauling and sure (import place to plant)

· Delays

Buyer Obligation

· Paying for goods

DDU (Delivered Duty Unpaid) - Delivered Duty Unpaid (named place of destination)

Seller's Obligations

· Deliver merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight and sure (of export place to the import place)

Obligations of the Buyer

· Payment of goods

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Delays

DEQ (delivered Ex-Quay) - Delivered Ex Quay (named port of destination)

Seller's Obligations

· Deliver merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight and sure (of export place to the import place)

· Customs (documents, permissions, requirements, taxes)

Obligations of the Buyer

· Payment of goods

· Freight and sure (import place to plant)

· Import expenses (you maneuver, storage, agents)

· Delays

This term can be used for transport by sea or inland waterway or multimodal transport only

DES (Delivered Ex Ship) - Delivered On Ship (named port of destination) 

Seller's Obligations

· Deliver merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· Freight and sure (of export place to the import place)

Obligations of the Buyer

· Payment of goods

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Hauling and sure (import place to plant)

· Delays

EXW (Ex-Works) - In Factory (place)

Obligations of Seller.

· Delivery of the goods and documents required

· Packing and packaging

Buyer's obligations.

· Payment of goods

· Inland freight (factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

· International Freight (of export place to the import place)

· Insurance

· Import expenses (you maneuver, storage, agents)

· Carriage and Insurance (import place to plant)

FAS (Free Along Ship) - Free Alongside Ship (named port of shipment)

Seller's Obligations

· Merchandise and Documents Needed

· Packing and Packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

Obligations of the Buyer

· Payments for goods

· Freight and sure (of export place to the import place)

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Insurance and freight (import place to plant)

· Delays

FCA (Free Carrier) - Free Carrier (named place)

Obligations of the seller.

· Delivery of Goods and documents required

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

Obligations of the buyer

· Payments for goods

· Freight (of export place to the import place)

· Insurance

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight and sure (import place to plant)

· Delays

FOB (Free On Board) - Free on Board (named port of shipment)

Obligations of the seller

· Give the merchandise and necessary documents

· Packing and packaging

· Freight (of factory to the export place)

· Customs (documents, permissions, requirements, taxes)

· Export expenses (you maneuver, storage, agents)

Obligations of the Buyer

· Payment of goods

· Freight and sure (of export place to the import place)

· Import expenses (you maneuver, storage, agents)

· Customs (documents, permissions, requirements, taxes)

· Freight (import place to plant)

 

· Delays