Inconterms

Incoterms are terms, of three letters each, that reflect the rules of
voluntary acceptance by the parties in an international contract
for the sale of goods regarding the delivery conditions of the
goods.

EXW (Ex Works / en fábrica)

Seller: delivers the merchandise to the buyer in the seller's own

warehouses. You only have to pack the merchandise and you are
released from all responsibility from that moment on.

Buyer: assumes all expenses and obligations from the collection

of the merchandise at the seller's warehouse. If there was
insurance, the buyer would bear its costs.

FCA (Free Carrier / libre transportista)

Seller: delivers and loads the merchandise at a location

previously agreed upon with the buyer. Assume the costs and
risks until the merchandise is delivered to that location, including
customs clearance for export.

• Buyer: assumes the costs and risks of transportation from

delivery to the point agreed with the seller, from loading to
unloading. It also pays for the insurance if you hire it.

FAS (Free Alongside Ship / libre al costado del buque)

Seller: delivers the merchandise to the loading dock of the port of
origin. All expenses up to delivery and export customs
procedures are your responsibility

• Buyer: is responsible for stowage, freight and expenses until it is

delivered to its destination, including import clearance and
insurance (if any).

It is only used in maritime transport.

FOB (Free on Board / libre a bordo)

Seller: bears all expenses and risks until the merchandise is

loaded on the ship, including export clearance.

Buyer: is responsible for contracting the means of transportation

and delivery to destination, including freight costs, unloading,
import procedures and insurance if contracted.

CFR (Cost and Freight / Coste y flete)

Seller: has the obligation to pay all costs until the merchandise
reaches the port of destination, including origin costs, freight,
export clearance and unloading costs

Buyer: is in charge of the import procedures and internal

transportation to the destination point. Assume the risks from the
moment the merchandise is on board the ship. You can take out
insurance that is not mandatory.

It is only used in maritime transport

CIF (Cost, Insurance and Freight / Coste, seguro y flete)

Seller: compulsorily contracts insurance and, as in the CFR,

assumes all expenses until the arrival of the merchandise at the
port of destination.
Buyer: assumes the risks during the journey since it is on board
the ship and import and transportation costs are at its expense.

It is only used in maritime transport and is one of the most used.

CPT (Carriage Paid To / Transporte pagado hasta)

Seller: is responsible for all expenses generated until the

merchandise is delivered to the agreed location.

• Buyer: is in charge of the import procedures and insurance if

contracted. The risk is transferred to the buyer when the
merchandise is loaded on the first means of transport that the
seller contracts.