Incoterm info

Incoterms are important as they help us to ensure that all parties involved in international trade are aware of their obligations and responsibilities. Upon your request and depending on the Incoterm chosen, International Cargo Delivery is responsible for different aspects of the shipment process. For example, under the CIF (Cost, Insurance and Freight) Incoterm ICD is responsible for providing the freight and insurance. In summary, Incoterms are an essential tool as they help to clearly define the responsibilities/risks of each party involved in international trade, ensuring that the shipment is completed in a timely and cost-effective manner. The Incoterms rules are used by buyers and sellers worldwide for clear interpretation of the most commonly used terms in international trade.

  • EXW – Ex-Works or Ex-Warehouse

    Ex works is when the seller places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.).
    The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable

  • FCA – Free Carrier

    The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.
    The parties are well advised to specify as explicitly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.

  • FAS – Free Alongside Ship

    The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.
    The risk of loss of or damage to the goods passes when the products are alongside the ship. The buyer bears all costs from that moment onwards.

  • FOB – Free On Board

    The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
    The risk of loss of or damage to the goods passes when the products are on board the vessel. The buyer bears all costs from that moment onwards.

  • CFR – Cost and Freight

    The seller delivers the goods on board the vessel or procures the goods already so delivered.
    The risk of loss of or damage to the goods passes when the products are on board the vessel.
    The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

  • CIF – Cost, Insurance and Freight

    The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on the ship.
    The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
    The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
    The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

  • CPT – Carriage Paid To

    The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such site is agreed between parties).
    The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.

  • CIP – Carriage And Insurance Paid To

    The seller has the same responsibilities as CPT, but they also contract for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
    The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

  • DAP – Delivered At Place

    The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.
    The seller bears all risks involved in bringing the goods to the named place.

  • DPU – Delivered At Place Unloaded (replaces Incoterm® 2010 DAT)

    DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers when the goods, once unloaded are placed at the disposal of the buyer at a named place of destination.
    The seller bears all risks involved in bringing the goods to, and unloading them at the named place of destination.

  • DDP – Delivered Duty Paid

    The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination.
    The seller bears all the costs and risks involved in bringing the goods to the place of destination. They must clear the products not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.