Incoterms
International commercial terms that establish rules that allow interpreting and solving the problems derived from imprecise knowledge of the commercial practices used in the countries of the buyer and seller, according to the Official Rules of the International Chamber of Commerce (ICC).
CFR (Cost and Freight)
The seller pays the transportation and other expenses necessary for the goods to arrive at the agreed port, although the risk of loss or damage of the merchandise is transmitted from seller to buyer once it has been delivered on board the ship in the port of Shipment and has crossed the border. It also requires the seller to clear the export merchandise. The insurance is in charge of the buyer.
CIF (Cost, Insurance and Freight)
The seller has the same obligations as under CFR, although, in addition, he must contract and pay the marine insurance premium to cover the loss or damage of the merchandise during transportation, and also deal with the clearance of the merchandise for customs purposes. The export.
CIP (Carriage and Insurance Paid to)
This term obliges the seller in the same way as the CPT and in addition must contract the insurance and pay the corresponding premium, to cover the loss or damage of the merchandise during the transport, although, it is only obliged to contract insurance with minimum coverage.
CPT (Carriage Paid to)
The seller contracts and pays the transport freight of the merchandise to the agreed place of destination. The risk of loss or damage is transferred from the seller to the buyer when the goods have been delivered to the custody of the first carrier designated by the seller, if there are several. The clearance at customs of export is made by the seller.
DAF (Delivered at Frontier)
El vendedor cumple su obligación, cuando, una vez despachada la mercancía en la aduana para la exportación la entrega en el punto y lugar convenidos de la frontera, antes de rebasar la aduana fronteriza del país colindante y sin responsabilidad de descargarla. Es de vital importancia que sea definido con precisión el “término” frontera.
DAP (Delivered at Place)
The seller undertakes to place the merchandise cleared for customs for export, bearing the costs until it is made available to the buyer at the agreed place of the importing country. The seller to assume all the expenses and risks related to take the merchandise to that place, including the import customs clearance. While EXW holds the minimum of obligations for the seller DDP means the maximum. The term should not be used if the seller can not obtain, directly or indirectly the import license
DAT (Delivered at Terminal)
The seller has to pay the costs and the freight necessary to get the goods to the Terminal (includes any place, covered or not, dock, warehouse, container station, terminal Road, rail or air). Discharged from the means of transport. Deliver the merchandise, despatched from the customs office of export, in said terminal on or within the stipulated term. The buyer must assume all risks of loss or damage of the merchandise from the moment it has been made available at the destination terminal. The customs clearance of import runs on its own.
DDP (Delivered Duty Paid)
In this term the seller makes the delivery of the merchandise to the buyer, dispatched for import and not unloaded from the means of transport upon arrival at the agreed place of the country of importation. The seller assumes all expenses and risks, including duties, taxes and other charges for bringing the merchandise to that place, once cleared for customs for importation.
DDU (Delivered Duty Unpaid)
The seller delivers the goods to the buyer at the agreed place of the buyer's country, not dispatched to the customs office of importation and not unloaded from the means of transport, upon arrival at said place. The term DDU can be used on any means of transport. The seller must assume all the expenses and risks related to taking the merchandise to the agreed place. The buyer has to pay any additional costs and bear the risks in case of not being able to dispatch the merchandise to customs for its importation in due time.
DEQ (Delivered ex Quay)
The seller fulfills his delivery obligation when he places the merchandise at the disposal of the buyer on the dock and once it is unloaded at the agreed port of destination. In this term the buyer is obliged to make the customs clearance of the merchandise for importation. It is only used in maritime transport.
DES (Delivered ex Ship)
The merchandise is placed by the seller at the disposal of the buyer on board the ship, at the agreed port of destination, without being sent to customs for importation. The seller assumes the costs and risks of transporting the goods to the port of destination, but not of the unloading. It is only used when transport is by sea.
EXW (Ex Works)
The seller agrees to make available to the buyer at his establishment or agreed place (eg. factory, workshop, warehouse, etc.), without dispatching it for export or loading in the receiving vehicle, completing his obligations.
FAS (Free Alongside Ship)
The delivery of the merchandise is done when it is placed by the seller to the side of the ship in the agreed port of embarkation. Are on account of the buyer all costs and risks of loss or damage of the merchandise from that moment. This incoterm requires the seller to clear the goods for export.
FCA (Free Carrier)
The seller delivers the merchandise and dispatches it for export to the carrier named by the buyer at the agreed place. The place of delivery chosen determines the loading and unloading obligations of the merchandise in that place: if the delivery takes place in the seller's premises, the seller is responsible for the cargo; If delivery occurs elsewhere, the seller is not responsible for the download.
FOB (Free on Board)
The seller is required to load the goods on board the ship at the port of shipment specified in the sales contract. The buyer selects the ship and pays the ocean freight. The transfer of risks and expenses occurs when the merchandise exceeds the ship's edge. The seller takes care of the procedures for the export.