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regulated
by the International Chamber of Commerce
Specifies the responsibilities of the exporter and
the responsibilities of the importer in an
international transaction
Incoterms
Ex works
Free carrier
Free alongside
ship Free on
board
Cost & freight
Cost, insurance &
freight Carriage paid
to
Carriage and insurance
paid to Delivered at
frontier
Delivered ex ship
Delivered ex quay
Delivered duty
unpaid Delivered
Code
EX
FC
W
A
FAS
CF
R
FO
CIF
B
CP
DAF
T
CIP
DES
DE
Q
DD
U
E Terms
F Terms
C Terms
D Terms
2
1
Customs
Clearance
for Export
4
Loadin
g
Preliminary
Transportati
on
Packin
g
11
10
Unloadin
g
Final
Transportati
Custom
s
Clearan
ce
9
Duties
Handlin
g
Outboun
5d
6
Main
International
Transportati
on
8
Handlin
g
Insuranc
e
EXW = Ex
Works
The seller fulfills his obligation to
deliver when he has made the goods
available at his premises to the buyer.
The seller is not responsible for
loading the goods on the vehicle
provided by the buyer
The seller is not responsible for
clearing the
goods for export, unless agreed.
The buyer bears all costs and risks
involved in taking the goods from the
Group C: Main
Carriage
Paid by Seller
CFR - Cost &
FReight
CIF - Cost, Insurance &
Freight
CPT - Carriage Paid
To
CIP - Carriage & Insurance
Paid
Under
C-terms,
the
seller
to
arranges and pays for the main
carriage but without assuming
the risk of the main carriage.
Ocean Terms
CFR
CIF
Other
Terms
CPT
CIP
Group D:
Arrival
DAF - Delivered At
Frontier
Ocean vs
Other
Ocean
Terms
DES
DEQ
Other
Terms
DDU
DDP
EXW
EXW
F
Class:
FCA
FAS
FOB
C Class:
CFR
CIF
CPT
CIP
F
Class:
FCA
FAS
FOB
C Class:
CFR
CIF
CPT
CIP
D Class:
DAF
DES
DEQ
DDU
DDP
D Class:
DAT
DAP
DDP
Exporting Country
Importing Country
DAP
DA
T
travel
Assists in the export clearance
procedures
Provides the documents to the importer
so that the goods can clear Customs in
country
or the
be insured.
the importing
Is responsible
for all
other aspects
Importer
of the
shipment
international travel
Loads the container on the carrier's truck or
delivers it to the carrier's facilities
Provide documents to clear Customs in the
importing country and to obtain insurance
Importer
Arranges the contract of carriage
Is responsible for all the other aspects of
the
shipment
in the port
Clearing the goods for export and provides
whatever documents the importer may
need to clear Customs in the importing
country and to obtain insurance
Importer
Pays for services from the point of delivery:
Importer
Responsible for arranging and paying
Exporting Country
Importer
the carrier
The exporter is given a bill of lading or
equivalent document
them to
the carrier
Responsibilities: Exporter
packages the goods for export &
pays for transportation until the
border city
Importer: Pays for transportation from
the border city to the final
destination & Clears Customs
Responsibilities
Seller is responsible for the costs and
risks to bring the goods to the point
specified in the contract
Seller should ensure that their
forwarding contract mirrors the
contract of sale
Seller is responsible for the export
clearance procedures
Importer is responsible to clear the goods for
import, arrange import customs formalities,
and pay import duty
Responsibilities
Seller bears the responsibility and risks to
deliver the goods to the named place
Seller is advised to obtain contracts of
carriage that match the contract of sale
Seller is required to clear the goods for
export
If the seller incurs unloading costs at place of
destination, unless previously agreed they are
not entitled to recover any such costs
Importer is responsible for effecting
customs clearance, and paying any
customs duties
Delivery
The delivery takes place when the exporter
places the goods at the disposal of the importer
in the city
of delivery mentioned in the
Incoterm.
Exporter's and Importer's Responsibilities
Exporter: