Incoterms
Incoterms, short for International Commercial Terms, are a globally recognized set of rules established by the International Chamber of Commerce (ICC) to facilitate smooth international trade transactions. They define the responsibilities and obligations of buyers and sellers, specifying key aspects like delivery point, risk transfer, and cost distribution. Here's a concise overview of each Incoterm:
EXW (Ex Works):
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Seller responsibility: Places goods at their premises.
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Buyer responsibility: Assumes all risks and costs from the seller's location.
FCA (Free Carrier):
Seller responsibility: Delivers goods to a named carrier or another party at a specified location.
Buyer responsibility: Bears risks and costs once the goods are handed over to the carrier.
​CPT (Carriage Paid To):
Seller responsibility: Pays for carriage to the named destination, but risk transfers upon delivery to the carrier.
Buyer responsibility: Bears risks and costs from the carrier's delivery point.
CIP (Carriage and Insurance Paid To):
Seller responsibility: Covers carriage and insurance to the named destination, with risk transferring upon delivery to the carrier.
Buyer responsibility: Assumes risks and costs once the goods are handed over to the carrier.
DAP (Delivered at Place):
Seller responsibility: Delivers goods at a named place, ready for unloading.
Buyer responsibility: Assumes risks and costs from the point of destination.
DPU (Delivered at Place Unloaded):
Seller responsibility: Delivers goods, unloaded, at the named place of destination.
Buyer responsibility: Assumes risks and costs upon delivery and unloading.
DDP (Delivered Duty Paid):
Seller responsibility: Delivers goods at the buyer's location, paying all duties and taxes.
Buyer responsibility: Assumes risks and responsibilities only upon delivery.