incoterms

INCOTERMS 2000 are universally recognised commercial terms defining the respective roles of the buyer and seller in the context of transportation and other responsibilities. They assist in clarifying the transferral of ownership of the merchandise during the delivery of goods. They are used in combination with a sales agreement or other method of transacting the sale.

Below is a summation of various Incoterms:

CFR Cost and Freight - Buyer assumes title, risk and insurance cost for the goods once they are delivered on board the ship by seller, who pays the costs of transportation to the destination port. Applies to sea or inland waterway transportation.

CIF Cost, Insurance and Freight - Buyer assumes title and risk when goods are delivered on board the ship by seller, who pays transportation and insurance cost to destination port. Applies to sea or inland waterway transportation.

CIP Carriage and Insurance Paid To - Buyer assumes title and risk when goods are delivered to carrier by seller, who pays transportation and insurance cost to destination. Applies to any mode of transportation.

CPT Carriage Paid To - Seller pays transportation cost to destination and delivers goods to carrier for transportation. Upon deposition of goods to carrier by the seller, title, risk and insurance cost pass to buyer. Applies to any mode of transportation.

DAF Delivered at Frontier - Buyer assumes title, risk and responsibility for import clearance when goods are delivered to named border point by seller. Applies to any mode of transportation.

DEQ Delivered Ex Quay (Duty Paid) - Seller delivers goods on dock at destination point cleared for import, passing title and risk to buyer when they are delivered on board the ship at the destination point. Applies to sea or inland waterway transportation.

DES Delivered Ex Ship - Buyer assumes title, risk, responsibility for vessel discharge and import clearance when seller delivers goods on board the ship to destination port. Applies to sea or inland waterway transportation.

DDU Delivered Duty Unpaid - Upon delivery of goods to named destination point, seller releases title, risk and responsibility of import clearance to buyer. Applies to any mode of transportation. Buyer is responsible for import clearance.

DDP Delivered Duty Paid - Buyer assumes title and risk upon the delivery of goods to named destination point cleared for import. Applies to any mode of transportation.

EXW Ex Works - Buyer takes on title and risk including payment of all transportation and insurance cost from the seller's door. Applies to any mode of transportation.

FAS Free Alongside Ship - Buyer assumes title and risk, including payment of all transportation and insurance cost, once goods are delivered alongside ship by the seller. Applies to sea or inland waterway transportation. The obligation for export clearance rests with the seller.

FCA Free Carrier - Buyer assumes title and risk, including transportation and insurance cost, when the seller delivers goods cleared for export to the carrier. Seller assumes responsibility for loading the goods on the Buyer's collecting vehicle; the Buyer has an obligation to receive the Seller's arriving vehicle unloaded.

FOB Free On Board - Buyer assumes title and risk, including payment of all transportation and insurance cost, once goods are delivered on board the ship by the seller. Applies to sea or inland waterway transportation.