INCOTERMS

Group Operations
INCOTERMS

The Incoterms (short for International Commercial Terms) rules are created and published by the International Chamber of Commerce (ICC)
and are revised every 10 years and introduced on the 1 st January. The most recent revision is Incoterms 2020 which are available for use on
all shipments taking place on or after 1st January 2020.

The Incoterms are a standard set of trading terms and conditions designed to assist traders when goods are sold and transported and they
govern 3 areas:-

 Transfer Of Risk
 Transfer Of Cost
 Obligations Of Seller & Buyer

When using an Incoterm, it should be stated as follows, Incoterm rule, named port, place or point, Incoterms (Year), example:-

EXW Mendoza, AR, Incoterms 2020

Important Points To Remember:-

 Incoterms DO NOT address ownership of the cargo, nor any other aspect of the sales contract beyond the 3 areas mentioned above.
 Incoterms are voluntary
 All Incoterms are associated with a named Place
So by agreeing on an Incoterms rule and incorporating it into the sales contract, the buyer and seller can achieve a precise understanding of
what each party is obliged to do, and who bears the risks& costs in event of loss, damage or other mishap.
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More info can be found here
INCOTERMS
Why Are They Important To Hillebrand?

The incoterms are important to Hillebrand for the following reasons:-

 They clearly identify who is responsible for what costs during the transport
 Which party is responsible for loading/unloading of the goods
 Who is responsible for producing documentation, submitting export and import customs entries and any import licenses etc
 They clearly identify who bears the “risk” in case of any loss or damage to the goods during the transport

This then enables us to quote the customer correctly and ensure we include all costs that the customer requires and to be able to invoice the
costs to the correct party as we understand who is responsible for what portion of the transport.

In a nutshell they provide a common language between all parties as to what is/is not included and where/when the risk is transferred for the
transportation of the cargo and who is responsible for what.

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INCOTERMS 2020

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INCOTERMS
EXW
Costs to make the cargo
available for the collecting
vehicle at agreed time and
date
Seller’s Cost
Seller’s Risk
Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port of
discharge)
Loading onto the vehicle at Export customs clearance Transportation to move cargo Loading container on board of
the seller’s premises from the suppliers premises the vessel (THC Origin)
to the port of loading
Buyer’s Cost
Buyer’s Risk
Unloading container at port of Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
discharge (THC Destination) to buyer’s nominated delivery premises.
point or warehouse
Buyer’s Cost
Buyer’s Risk
Seller’s Cost Optional Buyer’s Cost
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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
FCA Suppliers Premises
Costs to make the cargo
available for the collecting
vehicle at agreed time and
date
Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port of
discharge)
Loading onto the vehicle at Export customs clearance Transportation to move cargo Loading container on board of
the seller’s premises from the suppliers premises the vessel (THC Origin)
to the port of loading
Seller’s Cost Buyer’s Cost
Seller’s Risk Buyer’s Risk
Unloading container at port of Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
discharge (THC Destination) to buyer’s nominated delivery premises.
point or warehouse
Buyer’s Cost
Buyer’s Risk
Seller’s Cost Optional Buyer’s Cost
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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
FCA Carriers Premises

Costs to make the cargo Loading onto the vehicle at Export customs clearance Transportation to move Loading container on board of
available for the collecting the seller’s premises cargo from the suppliers the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost Buyer’s Cost

Seller’s Risk Buyer’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port of
discharge)
Unloading container at port of Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
discharge (THC Destination) to buyer’s nominated delivery premises.
point or warehouse

Buyer’s Cost
Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
FAS

Costs to make the cargo Loading onto the vehicle at Transportation to move cargo Export customs clearance Loading container on board of
available for the collecting the seller’s premises from the suppliers premises the vessel (THC Origin)
vehicle at agreed time and to the port of loading
date

Seller’s Cost Buyer’s Cost

Seller’s Risk Buyer’s Risk

Sea freight incl surcharges Unloading container at port of Transportation to move cargo Import customs clearance Unloading goods at buyer’s
like BAF, CAF etc (transport discharge (THC Destination) from port of discharge to premises.
from port of loading to port of buyer’s nominated delivery
discharge) point or warehouse

Buyer’s Cost
Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
FOB

Costs to make the cargo Loading onto the vehicle at Transportation to move Export customs clearance Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges Unloading container at port of Transportation to move cargo Import customs clearance Unloading goods at buyer’s
like BAF, CAF etc (transport discharge (THC Destination) from port of discharge to premises.
from port of loading to port of buyer’s nominated delivery
discharge) point or warehouse

Buyer’s Cost
Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
CFR

Costs to make the cargo Loading onto the vehicle at Export customs clearance Transportation to move Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port
of discharge)
Unloading container at port Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
of discharge (THC to buyer’s nominated delivery premises.
Destination) point or warehouse

Seller’s Cost Optional Buyer’s Cost

Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

Seller’s Risk Optional Buyer’s Risk 11
INCOTERMS
CIF

Costs to make the cargo Loading onto the vehicle at Transportation to move Export customs clearance Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges Unloading container at port of Transportation to move cargo Import customs clearance Unloading goods at buyer’s
like BAF, CAF etc (transport discharge (THC Destination) from port of discharge to premises.
from port of loading to port of buyer’s nominated delivery
discharge) point or warehouse

Seller’s Cost Optional Buyer’s Cost

Buyer’s Risk

Seller must pay

insurance to cover Seller’s Cost Optional Buyer’s Cost
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buyer’s risk Seller’s Risk Optional Buyer’s Risk
INCOTERMS
CPT

Costs to make the cargo Loading onto the vehicle at Export customs clearance Transportation to move Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk Optional Buyer’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port
of discharge)
Unloading container at port Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
of discharge (THC to buyer’s nominated delivery premises.
Destination) point or warehouse

Seller’s Cost Optional Buyer’s Cost Optional Buyer’s Cost

Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
CIP

Costs to make the cargo Loading onto the vehicle at Export customs clearance Transportation to move Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk Optional Buyer’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port
of discharge)
Unloading container at port Transportation to move cargo
Import customs clearance Unloading goods at buyer’s
of discharge (THC to buyer’s nominated delivery premises.
Destination) point or warehouse

Seller’s Cost Optional Buyer’s Cost Optional Buyer’s Cost

Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
DAP

Costs to make the cargo Loading onto the vehicle at Transportation to move Export customs clearance Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port
of discharge)
Unloading container at port Transportation to move Import customs clearance Unloading goods at buyer’s
of discharge (THC cargo from port of premises.
Destination) discharge to buyer’s
nominated delivery point or
warehouse

Seller’s Cost Optional Buyer’s Cost

Seller’s Risk Optional Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
DPU

Costs to make the cargo Loading onto the vehicle at Transportation to move Export customs clearance Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges Unloading container at port Transportation to move Import customs clearance Unloading goods at buyer’s
like BAF, CAF etc (transport of discharge (THC cargo from port of premises.
from port of loading to port Destination) discharge to buyer’s
of discharge) nominated delivery point or
warehouse

Seller’s Cost Optional Buyer’s Cost Optional

Seller’s Risk Optional Buyer’s Risk Optional

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
INCOTERMS
DDP

Costs to make the cargo Loading onto the vehicle at Transportation to move Export customs clearance Loading container on board
available for the collecting the seller’s premises cargo from the suppliers of the vessel (THC Origin)
vehicle at agreed time and premises to the port of
date loading

Seller’s Cost
Seller’s Risk

Sea freight incl surcharges
like BAF, CAF etc (transport
from port of loading to port
of discharge)
Unloading container at port Transportation to move Import customs clearance Unloading goods at buyer’s
of discharge (THC cargo from port of premises.
Destination) discharge to buyer’s
nominated delivery point or
warehouse

Seller’s Cost Buyer’s Cost

Seller’s Risk Buyer’s Risk

Seller’s Cost Optional Buyer’s Cost

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Seller’s Risk Optional Buyer’s Risk
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