NIRGOS Holding

Incoterms 2000, incoterms, accepted commercial terms



INCOTERMS 2000

- are internationally accepted commercial terms defining respective roles of buyer and seller in arrangement of transportation
and other responsibilities and clarify when ownership of merchandise takes place.
They are used in conjunction with a sales agreement or other method of transacting sale.

 

EXW EX WORKS (... named place) "Ex works" means seller's only responsibility is to make goods available at seller's premises, i.e., works or factory. seller is not responsible for loading goods on vehicle provided by buyer unless otherwise agreed. buyer bears full costs and risk involved in bringing goods from there to desired destination. Ex works represents minimum obligation of seller.

FCA FREE CARRIER (... named place)  This term has been designed to meet requirements of multimodal transport, such as container or roll-on, roll-off traffic by trailers and ferries. It is based on same name principle as F.O.B. (free on board), except seller fulfills its obligations when goods are delivered to the custody of carrier at named place. If no precise place can be named at the time of contract of sale, parties should refer to place where the carrier should take goods into its charge. risk of loss or damage to the goods is transferred from seller to buyer at that time and not at ship's rail. term "carrier" means any person by whom or in whose name a contract of carriage by road, rail, air, sea, or a combination of modes has been made. When a seller has been furnished a bill of lading, way bill or carrier's receipt, seller duly fulfills its obligation by presenting such a document issued by a carrier.

FAS FREE ALONGSIDE SHIP (... named port of shipment) "F.A.S." or "free alongside ship" requires the seller to deliver goods alongside ship on quay. From that point on, the buyer bears all costs and risks of loss and damage to goods. Unlike F.O.B., F.A.S. requires buyer to clear goods for export and pay cost of loading goods.

FOB FREE ON BOARD (... named port of shipment) Under "F.O.B." or "free on board," goods are placed on board ship by seller at a port of shipment named in sales agreement. risk of loss of or damage to goods is transferred to the buyer when goods pass ship's rail (i.e., off dock and placed on the ship). seller pays cost of loading goods.

CFR COST AND FREIGHT (... named port of destination) "CFR"requires seller to pay costs and freight necessary to bring goods to named destination, but risk of loss or damage to goods, as well as any cost increases, are transferred from the seller to buyer when goods pass ship's rail in port of shipment. Insurance is buyer's responsibility.

CIF COST, INSURANCE AND FREIGHT (... named port of destination) "CIF" is CFR. with additional requirement that seller procure transport insurance against risk of loss or damage to goods. seller must contract with the insurer and pay insurance premium. Insurance is generally more important in international shipping than domestic shipping, because U.S. laws generally hold a common carrier to be liable for lost or damaged goods.

CPT CARRIAGE PAID TO (... named place of destination) This term means seller pays freight for carriage of the goods to named destination. risk of loss or damage to goods and any cost increases transfers from seller to buyer when goods have been delivered to custody of first carrier, and not at ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. When seller is required to furnish a bill of lading, way bill, or carrier receipt, seller duly fulfills its obligation by presenting such a document issued by person contracted with for carriage to main destination.

CIP CARRIAGE AND INSURANCE PAID TO (... named place of destination) This term is same as "freight/carriage paid to (CPT)" but with additional requirement that seller has to procure transport insurance against risk of loss or damage to goods during the carriage. seller contracts with insurer and pays insurance premium.

DAF DELIVERED AT FRONTIER (... named place) "Delivered at frontier" means that the seller's obligations are fulfilled when goods have arrived at frontier but before customs border of country named in sales contract. The term is primarily used when goods are carried by rail or truck. seller bears the full cost and risk in delivering goods up to this point, but buyer must arrange and pay for goods to clear customs.

DES DELIVERED EX SHIP (... named port of destination) Means seller shall make goods available to buyer on board ship at place named in sales contract. seller bears the full cost and risk involved in bringing goods there. cost of unloading the goods and any customs duties must be paid by buyer.

DEQ DELIVERED EX QUAY (... named port of destination) Means seller has agreed to make the goods available to buyer on quay or wharf at place named in the sales contract. seller bears full cost and risks in delivering goods to that point including unloading.

DDU DELIVERED DUTY UNPAID (... named place of destination) Under these terms, seller fulfills his obligation to deliver when goods have been available to the buyer uncleared for import at point or place of named destination. The seller bears all costs and risks involved in bringing goods to point or place of named destination. There is no obligation for import clearance.

DDP DELIVERED DUTY PAID (... named place of destination) represents seller's maximum obligation. term "DDP." is generally followed by words indicating the buyer's premises. It notes that seller bears all risks and all costs until goods are delivered. This term can be used irrespective of mode of transport. If parties wish to make clear that seller is not responsible for certain costs, additional word should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").


  EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP

SERVICES

Ex Works Free Carrier Free Alongside Ship Free Onboard Vessel Cost & Freight Cost Insurance & Freight Carriage Paid To Carriage Insurance Paid To Delivered At Frontier Delivered Ex Ship Delivered Ex Quay Duty Unpaid Delivered Duty Unpaid Delivered Duty Paid
Warehouse Storage Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Warehouse Labor Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading Charges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland Freight Buyer Buyer/
Seller*
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarder's Fees Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading On Vessel Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Charges On  Arrival At Destination Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Buyer Buyer Seller Seller Seller
Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Delivery To Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller


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