Methods Of Delivery In International
Trade
"INCO Terms 2000" |
| EXW |
Ex Works
(... named place) |
means that the seller delivers when
he places the goods at the disposal
of the buyer at the seller's premises
or another named place (i.e. works,
factory, warehouse, etc.) not cleared
for export and not loaded on any
collecting vehicle. This term thus
represents the minimum obligation
for the seller, and the buyer has
to bear all costs and risks involved
in taking the goods from the seller's
premises |
| FCA |
Free Carrier
(... named place) |
means that the seller delivers the
goods, cleared for export, to the
carrier nominated by the buyer at
the named place. It should be noted
that the chosen place of delivery
has an impact on the obligations
of loading and unloading the goods
at that place. If delivery occurs
at the seller's premises, the seller
is responsible for loading. If delivery
occurs at any other place, the seller
is not responsible for unloading.
This term may be used irrespective
of the mode of transport, including
multimodal transport. |
| FOB |
Cost and Freight
(... named port of destination) |
means that the seller delivers when
the goods pass the ship's rail in
the port of shipment. The seller
must pay the costs and freight necessary
to bring the goods to the named
port of destination BUT the risk
of loss of or damage to the goods,
as well as any additional costs
due to events occurring after the
time of delivery, are transferred
from the seller to the buyer.The
CFR term requires the seller to
clear the goods for export. This
term can be used only for sea and
inland waterway transport. If the
parties do not intend to deliver
the goods across the ship's rail,
the CPT term should be used. |
| CIF |
Cost,Insurance and Freight
(... named port of destination) |
means that the seller delivers when
the goods pass the ship's rail in
the port of shipment. The seller
must pay the costs and freight necessary
to bring the goods to the named
port of destination .The CIF term
requires the seller to clear the
goods for export. This term can
be used only for sea and inland
waterway transport. If the parties
do not intend to deliver the goods
across the ship's rail, the CIP
term should be used. |
| CPT |
Carriage Paid To
(... named place of destination) |
means that the seller delivers the
goods to the carrier nominated by
him but the seller must in addition
pay the cost of carriage necessary
to bring the goods to the named
destination. This means that the
buyer bears all risks and any other
costs occurring after the goods
have been so delivered.If subsequent
carriers are used for the carriage
to the agreed destination, the risk
passes when the goods have been
delivered to the first carrier.
The CPT term requires the seller
to clear the goods for export. This
term may be used irrespective of
the mode of transport including
multimodal transport. |
| CIP |
Carriage
and Insurance Paid To
(... named place of destination) |
means that the seller delivers the
goods to the carrier nominated by
him but the seller must in addition
pay the cost of carriage necessary
to bring the goods to the named
destination. This means that the
buyer bears all risks and any additional
costs occurring after the goods
have been so delivered. However,
in CIP the seller also has to procure
insurance against the buyer's risk
of loss of or damage to the goods
during the carriage. Consequently,
the seller contracts for insurance
and pays the insurance premium.If
subsequent carriers are used for
the carriage to the agreed destination,
the risk passes when the goods have
been delivered to the first carrier.
The CIP term requires the seller
to clear the goods for export. This
term may be used irrespective of
the mode of transport including
multimodal transport. |
| DAF |
Delivered
At Frontier
(... named place) |
means that the seller delivers when
the goods are placed at the disposal
of the buyer on the arriving means
of transport not unloaded, cleared
for export, but not cleared for
import at the named point and place
at the frontier, but before the
customs border of the adjoining
country. The term "frontier"
may be used for any frontier including
that of the country of export. Therefore,
it is of vital importance that the
frontier in question be defined
precisely by always naming the point
and place in the term. This term
may be used irrespective of the
mode of transport when goods are
to be delivered at a land frontier.
When delivery is to take place in
the port of destination, on board
a vessel or on the quay (wharf),
the DES or DEQ terms should be used.
|
| DES |
Delivered
Ex Ship
(... named port of destination) |
means that the seller delivers when
the goods are placed at the disposal
of the buyer on board the ship not
cleared for import at the named
port of destination.The seller has
to bear all the costs and risks
involved in bringing the goods to
the named port of destination before
discharging. If the parties wish
the seller to bear the costs and
risks of discharging the goods,
then the DEQ term should be used.
This term can be used only when
the goods are to be delivered by
sea or inland waterway or multimodal
transport on a vessel in the port
of destination. |
| DEQ |
Delivered
Ex Quay
(... named port of destination) |
means that the seller delivers when
the goods are placed at the disposal
of the buyer not cleared for import
on the quay (wharf) at the named
port of destination. The seller
has to bear costs and risks involved
in bringing the goods to the named
port of destination and discharging
the goods on the quay (wharf).The
DEQ term requires the buyer to clear
the goods for import and to pay
for all formalities, duties, taxes
and other charges upon import. This
term can be used only when the goods
are to be delivered by sea or inland
waterway or multimodal transport
on discharging from a vessel onto
the quay (wharf) in the port of
destination. However if the parties
wish to include in the seller's
obligations the risks and costs
of the handling of the goods from
the quay to another place (warehouse,
terminal, etc.) in or outside the
port, the DDU or DDP terms should
be used. |
| DDU |
Delivered
Duty Unpaid
(... named place of destination) |
means that the seller delivers the
goods to the buyer, not cleared
for import, and not unloaded from
any arriving means of transport
at the named place of destination.
The seller has to bear the costs
and risks involved in bringing the
goods thereto, other than, where
applicable, any "duty"
(which term includes the responsibility
for and the risks of the carrying
out of customs formalities, and
the payment of formalities, customs
duties, taxes and other charges)
for import in the country of destination.
This term may be used irrespective
of the mode of transport but when
delivery is to take place in the
port of destination on board the
vessel or on the quay (wharf), the
DES or DEQ terms should be used.
|
| DDP |
Delivered
Duty Paid
(... named place of destination) |
means that the seller delivers the
goods to the buyer, cleared for
import, and not unloaded from any
arriving means of transport at the
named place of destination. The
seller has to bear all the costs
and risks involved in bringing the
goods thereto including, where applicable,
any "duty" (which term
includes the responsibility for
and the risk of the carrying out
of customs formalities and the payment
of formalities, customs duties,
taxes and other charges) for import
in the country of destination. If
the parties wish the buyer to bear
all risks and costs of the import,
the DDU term should be used. This
term may be used irrespective of
the mode of transport but when delivery
is to take place in the port of
destination on board the vessel
or on the quay (wharf), the DES
or DEQ terms should be used. |
