BGForwarding Argentina

WHAT ARE THE INCOTERMS?

Incoterms (international trade terms, 'international trade terms') are the three-letter terms that reflect the rules of voluntary acceptance by the two parties - buyer and seller - about the conditions of delivery of the goods and products.

They are used to clarify the costs of international business transactions, delimiting the responsibilities between the buyer and the seller, and reflect the actual practice in international freight transport.

The ICC (International Chamber of Commerce) has been responsible since 1936 for the elaboration and updating of these terms, in accordance with the changes in international trade.

The Incoterms 2010 (as of January 1, 2011) are currently in force, although it does not mean that the latest ones have been out of use. Hence, the need to point out the Incoterm and the year of the version.

Check Incoterms 2010

EXW - Ex-works

The buyer is responsible for all costs and risks of withdrawing the merchandise from the seller's address to his final destination.

FCA - Free carrier

The seller delivers the goods at the place agreed, by the carrier.

FOB - Free on Board

The merchandise is placed on board the ship with all expenses, rights and risks borne by the seller until the merchandise has passed the edge of the ship.

FAS - Free alongside ship

The seller delivers the merchandise to the side of the ship, with all the expenses and risks up to that point in charge of the seller. The buyer must dispatch the goods into customs.

CFR - Cost & Freight

The seller delivers the goods in port of destination, with freight paid but insurance not covered. You must also dispatch the goods to Customs.

CIF - Cost, Insurance & Freight

The seller delivers the goods in port of destination, with freight and insurance payment. The seller is only required to get insurance with minimum coverage.

CPT - Carriage paid to

The seller pays the freight of the transport of the merchandise to the destination mentioned. The risk of loss or damage is transferred from the seller to the buyer when the merchandise has been delivered to the carrier. The seller must dispatch the merchandise for export.

CIP - Carriage and Insurance Paid to

The seller has the same obligations as under CPT, but must also get insurance at his expense.

DAF - Delivered at Frontier

The seller fulfills his obligation when he delivers the merchandise, despatched in customs, at the agreed place of the border but before the customs border of the neighboring country.

DES - Delivered ex Ship

The seller fulfills his obligation when he places the goods available to the buyer on board the vessel at the port of destination, without being cleared for customs for importation.

DEQ - Delivered ex Quay, Duty Paid

The seller fulfills his obligation when he places the merchandise at the disposal of the buyer on the dock at the agreed port of destination, cleared for customs for importation.

DDU - Delivered Duty Unpaid

The seller fulfills his obligation when he places the goods at the disposal of the buyer at the agreed place in the country of importation. The seller assumes all costs and risks related to the delivery of the merchandise to that site, as well as costs and customs risks.

DDP - Delivered Duty Paid

The seller assumes the same obligations as in D.D.U. Plus the duties, taxes and charges necessary to bring the merchandise to the agreed place.

Incoterms