INCOTERMS @2020
Incoterms 2020, published by the International Chamber of Commerce (ICC), are a set of standardized international trade terms that define the responsibilities, costs, and risks associated with the delivery of goods between buyers and sellers. They provide a common framework for global trade, ensuring clarity in contracts by specifying who handles tasks like transportation, insurance, customs clearance, and risk transfer
1.EXW (Ex Works): Seller makes goods available at their premises; buyer bears all costs and risks from there.
2. FCA (Free Carrier): Seller delivers to a carrier chosen by the buyer; risk transfers when goods are handed to the carrier.
3. CPT (Carriage Paid To): Seller pays for transport to a destination, but risk transfers when goods are handed to the first carrier.
4. CIP (Carriage and Insurance Paid To): Like CPT, but seller also provides insurance (minimum Institute Cargo Clauses A).
5. DAP (Delivered at Place): Seller delivers goods to a named place, ready for unloading; buyer handles unloading and import clearance.
6. DPU (Delivered at Place Unloaded): Seller delivers and unloads goods at a named place; buyer handles import clearance.
7. DDP (Delivered Duty Paid): Seller bears all costs and risks, including import duties, until goods are delivered to the buyer.
8. FAS (Free Alongside Ship): Seller places goods alongside the ship at the port; buyer assumes risk thereafter.
9. FOB (Free on Board): Seller loads goods onto the ship; risk transfers to buyer once goods are on board.
10. CFR (Cost and Freight): Seller pays for transport to the destination port, but risk transfers once goods are on board.
11. CIF (Cost, Insurance, Freight): Like CFR, but seller also provides insurance (minimum coverage).
Incoterms apply to the contract of sale only, not the contract of carriage or insurance.
