INCOTERMS 2020
Incoterms® are rules created by the ICC (International Chamber of Commerce), internationally recognized, that define rights and obligations between buyer and seller and establish how the costs and risks will be allocated between the different parties of a transaction.
Incoterms types:
In Factory or Ex Works, the seller is only responsible for delivering the goods to its own or external facilities designated by it. Buyer bears all risk from there to destination.
FCA - Free Carrier - Free Carrier (+ agreed place of delivery) "Free Carrier" is when the seller delivers the merchandise to the carrier (the person responsible for carrying out the freight) or to another person designated by the buyer at the seller's premises or in another agreed place.
CPT Carrier Paid To - Carriage paid to (+ agreed place of delivery) "Carriage Paid To" is when the seller delivers the merchandise to the carrier (the person responsible for carrying out the carriage) or to another person designated by the seller at an agreed place.
CIP - Carrier and Insurance Paid To - Transport and Insurance paid to (+agreed place of delivery) The seller pays the transport to the agreed destination, but delivers the goods to the buyer (with transfer of risk) placing them in the possession of the carrier contracted by said seller.
DAP - Delivered at Place - Delivered at place (+ agreed place of delivery) "Delivered at Place" is when the seller delivers the merchandise, with transfer of risk, when it is made available to the buyer in the means of transport prepared for delivery. unloading at the agreed place of destination.
Delivered at Place Unloaded (DPU) – Merchandise delivered and unloaded at the agreed place. The Incoterm® DPU (Merchandise delivered and unloaded at the agreed place of delivery) establishes that the seller delivers the merchandise, with transfer of risk, when it, once unloaded from the means of transport, is made available to the buyer at the place of delivery. agreed destination.
DDP - Delivered Duty Paid - Delivered Duties Paid (+agreed place of delivery). "Delivered Duties Paid" is when the seller delivers the merchandise, with transfer of risk, when it is made available to the buyer cleared for import in the means of transport ready for unloading at the agreed destination.
FAS - Free Alongside Ship - Free Alongside Ship (+ agreed place of delivery) "Free Alongside Ship" is when the seller delivers the merchandise to the buyer when the merchandise is placed alongside the vessel (or barge) designated by the buyer at the port of shipment. From this point, the risk is assumed by the buyer.
FOB - Free On Board - Free on Board (+agreed place of delivery) . "Free on Board" is when the seller delivers the goods on board the ship designated by the buyer at the port of shipment.
CFR - Cost and Freight - Cost and Freight (+agreed place of delivery). “Cost and Freight” is when the seller assumes the cost and freight, duties not paid, to the agreed port of destination.
CIF - Cost, Insurance and Freight - Cost, Insurance and Freight (+agreed place of delivery). With the CIF Incoterm®, the seller bears the cost of insurance and freight, duties not paid, to the agreed port of destination.