Any Mode of Transport
Incoterms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes.
EXW — EX WORKS
NAMED PLACE OF DELIVERY — The seller has the goods available for buyer pick up at the seller’s premises or at an agreed upon named place. The seller has minimal obligations and is not required to load but may choose to provide that service if agreed to in contract. Buyer assumes responsibility starting from the seller’s door and ending at the final destination. Buyer is responsible for items like export licenses; customs, import, and duties formalities; pre-carriage, main carriage, discharge, and onward carriage; as well as loading and inspection costs.
FCA — FREE CARRIER
NAMED PLACE OF DELIVERY — The seller delivers the goods to the carrier authorized by the buyer (shipping line, airline, trucking firm, or rail/freight forwarder). The goods are delivered ‘export ready’ with the seller assuming responsibility for items such as export packaging and marking, loading, export licensing, customs formalities, pre-carriage to terminal, delivery to named place of delivery, and proof of delivery.
CPT — CARRIAGE PAID TO
NAMED PLACE OF DESTINATION — The seller delivers ‘export ready’ goods to the carrier or another named person at an agreed on named destination. The seller assumes transportation costs associated with delivery to the named place of destination and is responsible for clearing goods through export. The seller’s risk ends with delivery to the named destination and insurance is not required from the seller. The buyer assumes all risks at the first transfer of goods from the seller to the carrier including import formalities, duties, and per-shipment inspection charges.
CIP — CARRIAGE AND INSURANCE PAID TO
NAMED PLACE OF SHIPMENT — The seller delivers the goods to the carrier or named person at an agreed location and is responsible for transportation costs until the freight reaches the named place of shipment. The seller is required to clear the freight through export and obtain minimum insurance coverage, while the buyer assumes all risk at the port of shipment and is responsible for import, duties, and the cost of per-shipment inspection.
DAT — DELIVERED AT TERMINAL
NAMED TERMINAL AT PORT OR PLACE OF DESTINATION — The seller is responsible for clearing the freight for export and assumes the risk and cost of delivering the goods and unloading them at the terminal at the named port or place of destination. The buyer’s responsibility begins once the goods are unloaded at the terminal and continues through import clearance at the named country of destination and includes all costs and risk.
DAP — DELIVERED AT PLACE
NAMED PLACE OF DESTINATION — The seller assumes the responsibility and cost to clear the goods for export and to deliver the freight to the named place of destination. The seller doe snot unload the goods. The buyer assumes the cost and risk of unloading the goods from the seller’s transport and import clearance into the named country of destination through final delivery.
DDP — DELIVERED DUTY PAID
NAMED PLACE OF DESTINATION — The seller/shipper is responsible for costs related to transporting the goods and is responsible in full for delivering the goods to the named destination and transferred them to the buyer. This includes clear the goods through export making the goods ready for unloading and cleared for import.