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INCO TERMS

INTERNATIONAL COMMERCIAL TERMS • A codification of international rules for the uniform interpretation of common contract clauses in export/import transactions developed and issued by the International Chamber of Commerce (ICC). • It defines trade contract responsibilities between buyer and seller .

e. etc.) to the buyer • He is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export.EX-WORKS • Means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (i. factory. unless otherwise agreed • The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. • This term thus represents the minimum obligation for the seller . warehouse. works.

The principle on which the term is based is the same as applicable to FOB.FREE CARRIER (forwarder) • The term has been designed particularly to meet the requirements of modern transport like multimode transport. into the charge of the carrier named by the buyer at the named place or point. . • "Free Carrier" means that the seller fulfills his obligation to deliver when he has handed over the goods. including multimodal transport. except that. • This term may be used for any mode of transport. cleared for export.

FREE ALONGSIDE SHIP .FAS • "Free Alongside Ship" means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay at the named port of shipment • This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. .

FREE ON BOARD.FOB • "Free on Board" means that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment • This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. • The FOB term requires the seller to clear the goods for export .

.. INSURANCE AND FREIGHT (.COST AND FREIGHT (. named port of destination) Means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination • CIF .• - CFR .. - .COST.. named port of destination ) Means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage.

. named place of destination) ...CARRIAGE PAID TO (. Collect • CIP . named place of destination) ..Means that the seller pays the freight for the carriage of the goods to the named destination .Prepaid vs.Means that the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage.CARRIAGE AND INSURANCE PAID TO (.• CPT ..

but before the customs border of the country named in the sales contract The term is primarily intended to be used when the goods are to be carried by rail or road .Means that the seller fulfills his obligation to deliver when the goods have been made available. at the named point and place at the frontier..DELIVERED AT FRONTIER (.• DAF . named place) . cleared for export..

It is for the buyer to obtain necessary import license at his own risk and expense).DES . • The seller has to bear all the costs and risks . • Means that the seller fulfills his obligation to deliver when the goods have been made available to the buyer on board • The ship has cleared the border but uncleared for import at the named port of destination (before the Customs border of the foreign country.DELIVERED EX-SHIP • This is an arrival contract and means that the seller makes the goods available to the buyer in the ship at the named port of destination as per sales contract.

after crossing the Customs border at destination) at the named port of destination. • This term can only be used for sea or inland waterway transport.e.DELIVERED EX-QUAY • Means that the seller fulfills his obligation to deliver when he has made the goods available to the buyer on the quay (wharf i. taxes and other charges of delivering the goods thereto. cleared for importation • The seller has to bear all risks and costs including duties.DEQ . .

• The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties.DELIVERED DUTY UNPAID • Means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. • The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time. taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. . • This term may be used irrespective of the mode of transport.DDU .

cleared for importation. including duties. taxes and other charges of delivering the goods thereto. • EX WORKS REPRESENT LEAST BURDEN ON SELLER WHEREAS DDP REPRESENTS MAXIMUM OBLIGATION .DDP . • The seller has to bear the risks and costs. • This term may be used irrespective of the mode of transport.DELIVERED DUTY PAID • Means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation.

FAS loadin g FOB Factor y Exworks Custom s + CFR DD U Bringing goods to the named destination without custom clearance DDP unloadin g Export clearanc e DES CI F + DEQ Insuranc .

• Export Import Documentation .

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