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Incoterms rules

Incoterms Structure:

  • Group E - seller’s liabilities are minimum and are limited to goods provision in the order of the buyer;
  • Group F - seller’s liabilities are limited by sending goods; the main transportation isn't paid;
  • Group C - the seller is organizing and paying the transportation without acceptance related risks;
  • Group D - expenses and risks of the seller are maximum as he is obliged to make goods available the buyer in the stipulated destination (to provide arrival).

In groups primary obligations are slightly differ. For example, the seller is obliged to insure goods in addition, as it mentioned in the group C on bases of CIF and CIP, and to pay import duties as it mentioned in group D on DDP condition. There are differences connected with loading (or unloading) goods in groups F and D.

INCOTERMS 2010

The category E
Unloading

EXW

any transport

EX Works ( ... named place)
the transition of risk: at the moment of handing over the goods to the seller’s warehouse.

Export customs formalities:

Buyer’s  responsibility

Import customs formalities:

Buyer’s  responsibility

The category F
The main transportation

it isn't paid by the seller

FCA

any transport

Free Carrier (...named place)
the transition of risk:

At the moment of handing over to the seller’s warehouse.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s  responsibility

FAS

marine and inland water transport

Free Alongside Ship (... named port of shipment)
the transition of risk: at the moment of placement goods alongside ship.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s  responsibility

FOB

marine and inland water transport

Free On Board (... named port of shipment)
the transition of risk: after complete loading on ship board.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

 

 

The category  C
the main carriage paid by the seller

CFR

marine and inland water transport

Cost and Freight (... named port of destination)
the transition of risk: since full loading on ship board.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

CIF

marine and inland water transport

Cost, Insurance and Freight (... named port of destination)
the transition of risk: since full loading on a ship board.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

CIP

any transport

Carriage and Insurance Paid Тo (... named place of destination)
the transition of risk: at the moment of delivery or transfer to the carrier.
Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

CPT

any transport

Carriage Paid To (... named place of destination)
the transition of risk: at the moment of delivery or transfer to the carrier.
Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

The category D
delivery

DAT

any transport

new!!! Delivered At Terminal(... named terminal of destination)
the transition of risk: at the moment of delivery to the buyer’s terminal

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

DAP

any transport

new!!! Delivered At Point(... named point of destination)
the transition of risk: At the moment of the good’s delivery to point specified by buyer

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Buyer’s responsibility

DDP

any transport

Delivered Duty Paid (... named place of destination)
the transition of risk: at the moment of good’s transfer into buyer’s disposition.

Export customs formalities:

Seller’s responsibility

Import customs formalities:

Seller’s responsibility

DDU

any transport

It is excluded from the Incoterms 2010
Delivered Duty Unpaid (... named place of destination)

DAF

any transport

It is excluded from the Incoterms 2010
Delivered At Frontier (... named place)

DEQ

marine and inland water transport

It is excluded from the Incoterms 2010
Delivered Ex Quay (... named port of destination)

DES

marine and inland water transport

It is excluded from the Incoterms 2010
Delivered Ex Ship (... named port of destination)