Import / Export IncoTerms

• Insurance need to be purchased or not?

EXW (Ex Works)

• Most responsibility at buyer

• Loading from seller’s warehouse is buyer’s responsibility
• Best when buyer arrange consolidated shipment from different sellers.
• Suitable domestic sale
• Import and export clearance done by buyer
• Recognize revenue faster
FCA (Free Carrier)

• Delivery point is different from EXW

• Unloading from seller carriage is buyer’s responsibility or seller is responsible to custody of carrier identified
by Buyer (need to negotiate)
• Bill of lading shall be provided by Seller.
• Seller shall arrange export clearance
• FCA is used where buyer can't act as exporter.
• On-board term is used in BL. When goods are on-boarded to ship, the carrier sends the BL to shipper.
CPT (Carriage Paid To)

• Seller pays for transport to the named destination

• Seller pays for unloading at destination
• Import Clearance --> buyer
• Delivery location has to be defined on mutual agreement (could be anywhere)
• Delivery location is usually handover point of first freight handler
• Export clearance --> Seller’s Responsibility
• Import / transit clearance --> Buyer’s Responsibility
• e.g., Malysia --> Singapore--> Pakistan (buyer must clear all requirement from Singapore authorities.)
• Carrier A and B need to be discussed
CIP (Carriage and Insurance Paid To)

• Seller pays for transport and insurance to the named destination

• Seller pays for unloading at destination
• Import Clearance --> buyer
• Delivery location has to be defined on mutual agreement (could be anywhere)
• Delivery location is usually handover point of first freight handler
• Export clearance --> Seller’s Responsibility
• Import / transit clearance --> Buyer’s Responsibility
• e.g., Malysia --> Singapore--> Pakistan (buyer must clear all requirement from Singapore authorities.)
DPU (Delivered at Place Unloaded)

• Seller pays for transport and insurance to the named destination

• Seller pays for unloading at destination
• Delivery location has to be defined on mutual agreement (Named Place)
• Unloading is seller’s responsibility at delivery location (Named Place)
• Export clearance --> Seller’s Responsibility
• Import clearance --> Buyer’s Responsibility
• Transit clearance  Seller’s Responsibility
• e.g., Malysia --> Singapore--> Pakistan (buyer must clear all requirement from Singapore authorities.)
DAP (Delivered at Place)

• Seller pays for transport and insurance to the named destination

• Seller pays for unloading at destination
• Delivery location has to be defined on mutual agreement (Named Place)
• Unloading is Buyer’s responsibility at delivery location (Named Place)
• Export clearance --> Seller’s Responsibility
• Import clearance --> Buyer’s Responsibility
• Transit clearance  Seller’s Responsibility
• e.g., Malysia --> Singapore--> Pakistan (buyer must clear all requirement from Singapore authorities.)
DDP (Delivered Duty Paid)

• Seller pays for transport and insurance to the named destination

• Seller pays for unloading at destination
• Delivery location has to be defined on mutual agreement (Named Place)
• Unloading is Buyer’s responsibility at delivery location (Named Place)
• Export clearance --> Seller’s Responsibility
• Import clearance --> Seller’s Responsibility
• Transit clearance  Seller’s Responsibility
• e.g., Malysia --> Singapore--> Pakistan (buyer must clear all requirement from Singapore authorities.)
FCA (Free Carrier)
• Delivery same as EXW
• Unloading from seller carriage is buyer’s responsibility
• Bill of lading shall be provided by seller
• Seller shall arrange export clearance
• FCA is used where buyer can't act as exporter.
• On-board term is used in BL. When goods are on-boarded to ship, the
carrier sends the BL to shipper.
CPT (Carriage Paid To)
• Named place of destination
• Seller pays for carriage after handover
• Seller pays for unloading
• Import Clearance --> buyer
• Delivery location has to be defined on mutual agreement (could be anywhere)
• Delivery location is usually in destination country
• Export clearance -->seller
• Import / transit clearance --> buyer
• e.g. Malysia --> Singapore--> Pakistan (buyer have to clear all requirement from
singapore authorities.
CPT (Carriage Paid To)
• Delivery Point need to be discussed
• Carrier A and B need to be discussed