EXW - Ex Works (named place):
The seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligation on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any cost included.. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, they do so at the buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risks and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.
The buyer arranges the pickup of the freight from the seller's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer.
FCA - Free Carrier (named place of delivery):
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for loading.
If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled their obligation to deliver the goods when they are delivered to that person.
CPT - Carriage Paid To (named place of destination):
The seller pays for carriage. Risk transfers to buyer uopn handling goods over tro the first carrier at place of shipment in the country of Export. The seller is responsible for origin costs including export clearance and freight costs for carriage to named place (usually destination port or airport). Shipper is not responsible for buying Insurance and for delivery to final destination (buyer's facilities). This term is used for all kind of shipments.
CIP - Carriage & Insurance Paid To (named place or destination):
The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier. CIP is used for intermodal deliveries & CIF is used for sea.,
DAT - Delivered at Terminal (named terminal at port or place of destination):
This term means that the seller covers all costs of transport (export fees, carriage, unloading from main carrier at destination port, and destination port charges) and assumes all risk until destination port, import duty/taxes//customs costs to be borne by Buyer.
* DDP - Seller pays import tax only and does NOT include VAT/FAT
Export customs declaration
Carriage to port of export
Unloading of truck in port of export
Loading on vessel in port of export
Carriage (Sea/Air) to port of import
Unloading in port of import
Loading on truck in port of import
Carriage to place of destination
|Import customs clearance||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Seller|
|Import taxes||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||* Seller|
RISK & RESPONSIBILITY CHART
International Commercial Terms - INCOTERMS 2010
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