International transport > Types of Incoterms

Types of Incoterms


The terms and concepts used in the "Incoterms" summarize the obligations of the buyer and the seller in international transactions.


12 Dic 2013 - Transhunter.com

Imágen Ficha

There are 13 types of incoterms used in international purchase contracts of goods, one of which the buyer or importer and exporter or seller, will agree upon when signing the contract.

EXW (Ex Works or At factory): The exporter delivers the goods to the importer at its factory, being the importer the one responsible for all the expenses incurred (transport, customs, insurance, etc) and risks (loss or damage to the goods).

FCA (Free Carrier): The exporter must deliver the goods to the carrier contracted in place agreed upon and is responsible for all expenses and risks that can arise until that moment, including the paperwork and customs charges of the goods leaving the country. Once the goods are delivered to the carrier, the importer is then responsible for all expenses and risks incurred.

FAS (Free alongside ship): Only used when the goods are shipped by sea. The exporter must deliver the goods by placing it next to the ship, being responsible for all risks and expenses incurred until that moment, including the paperwork and costs of customs formalities of the goods leaving the country. Once the goods are placed next to the ship, all risks and expenses incurred, including those of loading the goods onto the ship will be borne by the importer.

FOB (Free on board): The exporter must deliver the goods on ship, thereby being the one responsible for all risks and expenses incurred until that moment, including all paperwork and customs fees relating to the departure of the goods from the country. Once the goods are loaded on the ship, all risks and expenses incurred shall be borne by the importer.

CFR (Cost and freight): Only used when the goods are shipped by sea. The exporter must deliver the goods to the destination port agreed upon, and all risks and expenses will be borne by him, including the paperwork and expenses regarding the customs formalities for the departure of the goods from the country, except transportation insurance. From the moment the goods are delivered to said port, all risks and expenses incurred shall be borne by importer.

CIF (Cost, insurance and freight): SOnly used when the goods are shipped by sea. The exporter must deliver the goods to the destination port agreed upon, and all risks and expenses will be borne by him, including transportation insurance, as well as all expenses which could arise regarding the customs formalities of the departure of the goods from the country. Once the goods are delivered, all risks and expenses incurred shall be borne by importer.

CPT (Carriage paid to destination): Similar to the CFR, it can be used for other types of transportation which aren’t by sea.

CIP (Carriage and insurance paid to destination): Similar to the CIF, it can be used for other types of transportation which aren’t by sea.

DAF (Delivered at frontier): The exporter delivers the goods to the frontier point agreed upon, being responsible for all the risks and expenses incurred, except those of international transportation and insurance, which are negotiable. As of the moment of delivery, all expenses and risks will be responsibility of the importer.

DES (Delivered ex ship): The goods are delivered by the exporter on the ship, once it has reached is port of destination, being responsible for risks and costs incurred to that moment. Once delivered the risks and expenses incurred shall be borne by the importer, including the unloading of the goods.

DEQ (Delivered ex quay or Delivered on dock with duties paid): The goods are delivered by the exporter at its port of destination, being responsible of all risks and expenses, including those customs duties due by means of the importation of the goods at the destination country. Once the goods are delivered, all risks and expenses are responsibility of the importer.

DDV (Delivered duty unpaid or Delivered on dock without duties paid): The goods are delivered by the exporter at a destination agreed upon with the importer, being the exporter responsible for all risks and expenses, except those incurred by the importation of the goods, these being liable to the importer.

DDP (Delivered duty paid): The goods are delivered by the exporter at a destination agreed upon with the importer, being the exporter responsible for all risks and expenses, including those regarding the importation of the goods.