Incoterms - General Terms

Incoterms ("INternational COmmercial TERMS") are a group of commercial terms (three letters each).

What are Incoterms used for?

They are used in international transactions to clarify costs and determine the commercial clauses included in a sales contract.

• EXW

It comes from Ex Works (In factory). Refers to the fact that the seller makes the goods available to the buyer at his own factory or warehouse. Thereafter, the buyer is responsible for all transport costs.

• FCA

It comes from Free Carrier (Free Carrier). In this case, the seller delivers the goods to a specific place in the country of origin. In which an independent carrier takes care of it. The seller takes care of the transport until it is handed over to the carrier.

• CPT

It comes from Carriage Paid To (Transport Paid To). Refers to the fact that the The seller bears the transport costs until the goods arrive at their destination, but the buyer is responsible for the condition of the goods when the goods are delivered in the country of destination. If there is more than one carrier, the transfer of this risk takes place when the first carrier delivers the goods to the next.

• ICPT

It comes from Carriage and Insurance Paid To (Carriage and Insurance Paid Up To). It is similar to the CPT, but in this case, the The seller is responsible for the insurance until the goods are delivered in the country of destination.

• DAT

It comes from Delivered at Terminal (Delivered at Terminal). In this case, the seller is responsible for the main carriage and insurance, which in this case is optional, until the goods are delivered to the terminal, whether it is a marine, land or airport terminal.

• DAP

It comes from Delivered at Place (Delivered on Site). In this case, the seller is responsible for the main transport and insurance, also optional in this case, until the goods are delivered at the agreed point, thereafter, the buyer shall be liable.

• DDP

It comes from Delivery Duty Paid (Delivered Duty Paid). In this case, the seller bears all costs without The buyer is not required to take any action whatsoever until the goods are delivered at the agreed place.

And now that you have learned what Incotermins are in general terms, MentorDay thanks you for valuing the tip.

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