MULTIMODAL INCOTERMS
FOR EVERY TYPE OF TRANSPORT
EXW: EX-WORKS
The seller is only responsible for making the goods available at the designated location (normally the seller’s warehouse or depot) properly packed. It is the buyer’s responsibility to clear the goods for export and arranging the pickup and transport from that moment on. The seller may also need to provide assistance during the clearance process.
CPT: CARRIAGE PAID TO
The seller delivers the goods to the carrier and is responsible for paying the freight charges. The seller’s responsibility ends when the goods are passed on to the freight forwarder and from that moment on the buyer assumes all the risks.
DPU: DELIVERED PLACE UNLOADED
The goods are the seller’s responsibility until it is delivered to the address of named destination. It is the seller’s responsibility to unload the goods. After that moment the buyer is responsible for cargo. Before the new incoterms 2020 were published this was known as DAT (DELIVERED AT TERMINAL)
DAP: DELIVERED AT PLACE The seller is responsible for the goods until after it is unloaded at the place of delivery. I.e. it is the seller’s responsibility to unload the goods. In both cases, customs are paid by the buyer. The buyer is responsible for paying customs clearance or import duties, whereas the seller assumes all costs and risks until the load reaches the final delivery location.
DDP: DELIVERED DUTY PAID
The seller delivers the goods to the buyer, ready for unloading, with all the customs, taxes and import duties paid. The buyer is solely responsible for unloading the goods upon arrival.
Incoterms used for sea/inland waterway transport:
FCA: FREE CARRIER
The seller is responsible for making the goods available at their own premises, already cleared for export, and loading the goods on the chosen means of transport. A variation of this term happens if the seller is responsible for making the goods available in a place other than its own premises. In this case, it is the importer’s responsibility to unload the goods and loading on chosen carrier.
CIP: CARRIAGE AND INSURANCE PAID TO (named place)
The seller delivers the goods to a carrier and is responsible for paying the freight and insurance cover (at least 110% of the goods).
DAP: DELIVERED AT PLACE
The seller is responsible for the goods until after it is unloaded at the place of delivery. I.e. it is the seller’s responsibility to unload the goods. In both cases, customs are paid by the buyer. The buyer is responsible for paying customs clearance or import duties, whereas the seller assumes all costs and risks until the load reaches the final delivery location.
Incoterms used for sea/inland waterway transport
FAS: FREE ALONGSIDE SHIP
The seller delivers the goods, properly packed and cleared for export, to the selected loading port and leaves goods beside the selected vessel. The buyer is responsible for loading the goods.
CFR: COST AND FREIGHT
The seller delivers the goods properly packed and cleared for export and loads it on the selected vessel. Although the seller must pay for the carriage charges until the destination port (but not till the final delivery address), once the goods are loaded, it is the buyer’s responsibility.
FOB: FREE ON BOARD
The seller delivers the goods, properly packed and cleared for export to the port of export and loads it onto the selected vessel. From then on, the buyer is responsible for the cargo, freight costs, insurance and any other fees.
CIF: COST INSURANCE AND FREIGHT
The seller delivers the goods safely and properly packed to the vessel at the export port. Goods have been cleared for export and the seller pays for the freight charges to the destination port as well as for minimum insurance, however, the responsibility passes on to the buyer once the goods are loaded on the vessel. The seller is also responsible for issuing and passing on to the buyer the required documents for the shipment (including but not limited to: invoice, insurance and bill of lading.
