INCO Terms Flashcards
(13 cards)
INCOterms
standardized terms used in international trade to define the responsibilities and obligations of buyers and sellers regarding the delivery of goods. Understanding and correctly applying these terms can help prevent misunderstandings and disputes in cross-border transactions
EXW —Ex Works
The seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, risks, and export/import clearance
FCA — Free Carrier
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The seller is responsible for export clearance
FAS — Free Alongside Ship
The seller delivers the goods to the dock alongside the vessel designated by the buyer at the named port of shipment. The seller is responsible for export clearance.
FOB — Free on Board
The seller delivers the goods on board the vessel designated by the buyer at the named port of shipment. The seller is responsible for export clearance.
CFR —Cost and Freight
The seller delivers the goods on board the vessel designated by the buyer at the named port of destination. The seller pays for the cost of transportation to the named port of destination, but the risk of loss or damage transfers to the buyer once the goods are on board.
CIF —Cost, Insurance, and Freight
Similar to CFR, but the seller also contracts for insurance cover against the buyer’s risk of loss or damage to the goods during transportation. The seller pays for insurance and transportation to the named port of destination.
CPT —Carriage Paid To
The seller delivers the goods to the carrier nominated by them, but the seller pays the transportation costs to the named place of destination. The risk of loss or damage transfers to the buyer when the goods are handed over to the carrier.
CIP —Carriage and Insurance Paid To
Similar to CPT, but the seller also contracts for insurance cover against the buyer’s risk of loss or damage to the goods during transportation. The seller pays for insurance and transportation to the named place of destination.
DAT — Delivered at Terminal
The seller delivers the goods, unloaded, at a named terminal at the named port or place of destination. The seller is responsible for import clearance and pays all costs until the goods are unloaded at the terminal.
DAP — Delivered at Place
The seller delivers the goods, unloaded, at a named place of destination. The seller is responsible for import clearance and pays all costs until the goods are unloaded at the named place of destination.
DDP — Delivered Duty Paid
The seller delivers the goods, unloaded, at the named place of destination. The seller is responsible for import clearance, payment of duties and taxes, and all costs until the goods are unloaded at the named place of destination.
DDU — Delivered Duty Unpaid
Similar to DDP, but the buyer is responsible for paying the import duties and taxes.
