Ключевые моменты интернационализации > Логистика и распределение > Транспорт > Инкотермс
Incoterms, short for International Commercial Terms, is set of regulations and clauses used in international commerce that clearly define the rights and obligations between buyers and sellers in an international sales operation.
The first version of Incoterms were introduced in 1936 by the International Chamber of Commerce in response to the need to create a set of standard trade definitions that are most commonly used in international operations and avoid problems derived from the commercial practices different in each country. Since 1936 they have been updated to keep pace with the development of international trade. The latest version of Incoterms was made in the year 2000.
When negotiating and preparing documents byGalicia recommends:
Regardless of the Incoterm being used, as importer it is recommended that you get involved in the organisation of shipping as this affects the cost of the product and the delivery lead-time.
Incoterms also define who is responsible for import and export customs formalities, without which the international circulation of goods is not possible. byGalicia recommends that, where possible, each party is responsible for the customs formalities within their own country. In this way, neither party has to face custom formalities and legislation in countries they are not familiar with.
Incoterms is divided into four groups depending on the point where the seller places the merchandise at the disposition of the buyer. byGalicia details the main points for each one.
EXW Ex Works/ Factory (named place): Means that it is the obligation of the seller to place the goods at the disposal of the buyer at the sellers premises or other named place.
FCA Free Carrier (named place): Means that it is the obligation of the seller to deliver the goods, cleared for export, to the carrier nominated by the buyer at the named place The buyer must bear all transport and insurance costs as well as risks of loss of or damage to the goods from this point.
FAS Free Alongside Ship (named port of shipment): Means that the seller delivers when the goods are placed alongside the vessel at the quay of the named port of shipment. The buyer must bear all the transport and insurance costs as well as risks of loss of or damage to the goods from this point.
FOB Free On Board (named port of shipment): Means that the seller delivers when the goods pass the ship's rail at the named port of shipment. The seller is responsible for all custom formalities for exporting as well as the loading of the merchandise onto the vessel. The buyer pays the carriage and the insurance as well as bearing the risk of loss of or damage to the goods from the moment the goods pass the rail of the vessel.
CFR Cost and Freight (named port of destination): The seller chooses the ship, despatches the goods and pays expenses and the freight costs. The risk of loss of or damage to the goods are transferred from the seller to the buyer when the goods are placed on the vessel at the named port.
CIF Cost Insurance and Freight (named port of destination): The seller's obligations are exactly the same as the Incoterm CFR but in addition pays the insurance of the goods during carriage.
CPT Carriage paid to (named place of destination): The seller pays the cost of carriage necessary to bring the goods to the named destination. The seller has to clear the goods for export. Risk of loss of or damage to the goods passes to the buyer when the goods have been delivered to the carrier.
CIP Carriage and insurance Paid to (named place of destination): The seller has the same obligations as the CPT but in addition pays for the insurance of carriage of the goods.
DAF Delivered at Frontier (named place): The seller is obliged to deliver the goods to customs for importing in the named point and place at the frontier. The seller bears the risks of damage to and loss of the goods up to the moment in which they are delivered.
DES Delivered Ex Ship (named port of destination): The seller commits to deliver the goods on board the ship to the named port of destination. The seller bears the risks of damage to and loss of the goods up to the moment in which they are delivered.
DEQ Delivered Ex Quay (named port of destination): The seller places the merchandise at the disposal of the buyer on the quay (wharf) at the named port of destination.
DDU Delivered Duty Unpaid (named place of destination): The seller delivers the goods when they are placed at the disposal of the buyer at the named place of destination in the import country. The seller assumes the risks and bears the costs until goods are delivered to this place excluding any duty or import tax.
DDP Delivered Duty Paid (named place of destination): The seller has the same obligations as set out in DDU, but in addition pays the import duty of the goods. DDP represents the maximum obligation by the seller in Incoterms.
Go to page on Incoterms of the International Chamber of Commerce.