Incoterms are international rules that define the rights and obligations of buyers and sellers in international trade transactions. Among other things, they determine who is responsible for transport costs, insurance, customs clearance and transfer of risk. Incoterms help to avoid misunderstandings and disputes between the parties by establishing clear rules for international trade.
- The e-clauses:
- Here the costs and risks are transferred to the buyer from the time the goods are made available at the named place.
- EXW (Ex Works … named place)
- The F clauses:
- The buyer bears the costs of the main transport and the risk passes to the buyer when the goods are handed over to the carrier of the main transport.
- FCA (Free Carrier … named place of delivery)
- FAS (Free Alongside Ship)… named port of shipment
- FOB (Free on Board … named port of shipment)
- The C-clauses (two-point clauses)
- The seller bears the costs of the main transport and the risk is transferred to the buyer when the goods are handed over to the carrier of the main transport
- CFR (Cost an Freight … named port of destination)
- CIF (Cost, Insurance and Freight … named port of destination)
- CPT (Carriage Paid to … named port of destination)
- CIP (Carriage, Insurance Paid … named place of destination)
- The D-clauses:
- The seller bears all costs and risks up to the named place where the goods are delivered.
- DAP (Delivered At Point … named place)
- DPU (Delivered At Place Unloaded / Delivered… named place)
- DDP (Delivered Duty Paid/Delivered Duty Paid … named place)