Incoterms® 2010 rules

What are the Incoterms® rules?

The Incoterms rules, published

by the International Chamber

of Commerce (ICC), are

intended to define the rights

and obligations of the parties

involved in the sale of a

product with regard to these

five aspects:

• Obligations assumed by the

buyer and seller according

to what was agreed upon in

the contract of sale.

• Costs assumed by each

party in relation to the

contracting of transport and other

logistics chain operations.

• Which party assumes the insurance of

the merchandise, in the event that it

has been contracted, and the extent of

the insurance coverage.

• Which party is required to look after

customs clearance in the event that it

is necessary.

• Place and time of the delivery of the

merchandise and transfer of risk from

the seller to the buyer.

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Incoterms®2010 multimodal rules

The Incoterms multimodal rules are

suitable for all sales transactions that

involve road, rail, air or multimodal

transport, including multimodal

• EXW (ex works)

container transport with a sea transport

phase as well as a combination of any of

these modes (except maritime port to

port). These rules are as follows:

• FCA (free carrier)

• CPT (carriage paid to)

• CIP (carriage and insurance paid to)

• DAT (delivered at terminal)

• DAP (delivered at place)

• DDP (delivered duty paid)

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EXW EXW Ex works

The selling company delivers the without loading it onto the vehicle sent by the

merchandise by making it available to the buyer. The latter assumes all costs from that

buyer in its own facilities moment onwards.

Seller Seller Transport Customs Terminal Main Terminal Customs Transport Buyer Buyer Transport

Risks Risks

Costs Costs

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FCA seller’s facilities Free carrier

The seller loads the goods on the vehicle of The goods are delivered once loaded,

the forwarder hired by the buyer. at which time the risks are transmitted to the

buying company.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

Risks Risks

Costs Costs

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FCA other location Free carrier

The seller assumes the costs of offloading the goods from the vehicle. The

delivering the merchandise to the buyer assumes the costs y risks from

designated location (terminal), without that point onwards.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller hasta otro lugar principal Buyer Buyer

Risks Risks

Costs Costs

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CPT/CIP Carriage paid to / Carriage and insurance paid to

The selling company passes the risks on

to the buyer by placing the goods at the

disposal of the forwarder hired by the

seller. In the event that transportation is

carried out by several forwarders

(multimodal transport),

the risks are passed on when the

merchandise is delivered to the first of

them. Under CIP conditions, from this

point on the risks must be covered by

the insurance contracted by the selling

company under the terms stipulated by

the Incoterms rule.

Transport Customs Terminal Transport Terminal Customs Transport

Seller Seller principal Buyer Buyer

Risks Risks

Costs Costs

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DAT

Delivered at terminal

The seller assumes the costs and risks up

to delivery and offloading the merchandise

from the vehicle in the designated

DAT

destination terminal. From that moment

onwards, the costs and risks fall to the

buying company.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

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Costs Costs

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DAP

Delivered at place

The selling company assumes the costs

and risks up to delivery of the

merchandise in the designated

destination without offloading it from the

vehicle. The cost of import clearance

falls to the purchasing company.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

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Costs Costs

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DDP Delivered duty paid

The selling company assumes the costs designated destination without

and risks up to the delivery of the offloading the vehicle.

merchandise and import clearance at the

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

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The Incoterms ® 2010 rules for maritime

transport

This group of Incoterms rules for

maritime transport and inland waterways

is suitable for all sales transactions that

involve the transport of general cargo

that is uncontainerized, partial load, bulk,

etc., from port to port. It comprises four

rules:

• FAS free alongside ship.

• FOB free on board.

• CFR cost and freight.

• CIF cost, insurance and freight.

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FAS

Free alongside ship

The selling company assumes costs and risks up to delivery of the merchandise alongside the ship specified by the buyer at the designated port of loading.

FAS

From this point onwards, the costs fall

to the purchasing company, including

loading on board the ship.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

Risks Risks

Costs Costs

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FOB

Free on board

The selling company assumes the costs

and risks up to delivering the goods on

board the ship specified by the buyer at the

FOB

designated port of loading. From this point

onwards, the costs fall to the purchasing

company.

Transport Customs Terminal Transport Terminal Customs Transport

Seller Seller principal Buyer Buyer

Risks Risks

Costs Costs

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CFR/CIF CFR/CIF Cost and freight / Cost, insurance and freight

The selling company assumes the

transportation cost until the merchandise

is delivered in the designated port of

destination, but passes on the risks when

it loads the goods on board the ship

specified by the buyer at the designated

port of loading. Under CIF conditions,

risks from this point onwards must be

covered by the insurance contracted by

the selling company under the terms

stipulated by the Incoterms rule.

Transport Customs Terminal Transport Terminal Customs Transport Seller Seller principal Buyer Buyer

Risks Risks

Costs Costs

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