During international transactions it is very important that the selling terms are clearly drawn between the buyer and the seller. Incoterms stand for International Commercial terms. This is the set of rule published by ICC (International Chamber of Commerce). These rules are accepted by the legal authorities around the world. Incoterms states when the risk, cost and tasks transfers from the buyer to the seller.
Exw (Ex works) - Place
Seller – Packing
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
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) - Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
---- Mode of Transport - Sea -------
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FAS (Free Alongside Ship) – Port
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port.
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
FOB (Free On Board) – Port
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
CFR (Cost and Freight) – Port
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
CIF (Cost, Freight and Insurance) – Port
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges
Buyer – Any other cost and expenses
Insurance is in Seller’s account
++++++++
CPT (Carriage Paid To) – Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
CIP (Carriage & Insurance Paid To) – Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges
Buyer – Any other cost and expenses
Insurance is in Seller’s account
DAP (Delivered at Place) – Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
DPU (Delivered at Place Unloaded) – Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination + Unloading Charges
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
DDP (Delivered Duty Paid) – Place
Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination + Unloading Charges + Import Duties, Taxes and Custom Clearance.
Buyer – Any other cost and expenses
Insurance is negotiable between buyer & seller.
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