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INCOTERMS ARE STANDARD TRADE DEFINATIONS USED MOST COMMONLY INCOTERMS 2010 ENGLISH VERSION 1.0 IN INTERNATIONAL SALES CONTRACTS. THIS ILLUSTRATION SHOWS RISK & COST DISTRIBUTION BETWEEN SELLER & BUYER. SELLER'S WAREHOUSE LOADING AT SELLER'S WAREHOUSE INITIAL TRANSPORT EXPORT CUSTOMS CLEARANCE HANDLING AT CARRIER'S WAREHOUSE LOADING CARGO INSURANCE MAIN TRANSPORT UNLOADING HANDLING AT FREIGHT TERMINAL IMPORT CLEARANCE, DUTY PAID TRANSPORT TO DESTINATION UNLOADING AT CONSIGNEE EXW INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER RISK COST RISK COST RISK COST RISK EXW EXͲWORKS FCA FREE CARRIER FAS FREE ALONGSIDE SHIP FOB INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER RISK COST RISK COST RISK COST RISK CPT CFR COST & FREIGHT CIF COST, INSURANCE & FREIGHT FOB FREE ON BOARD INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER RISK COST RISK COST RISK COST RISK DELIVERED AT TERMINAL DAP CIP CARRIAGE & INSURANCE PAID DAT CPT CARRIAGE PAID TO INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER RISK COST RISK COST TO BE USED WITH ALL TRANSPORT TYPES.: TO BE USED WITH SEA TRANSPORTATION ONLY Ͳ PORT TO PORT.: EXW Seller delivers when they place goods at the disposal of buyer at the sellers premises or another FAS Seller delivers when the goods are placed alongside the vessel at the named port DAP DELIVERED AT PLACE DDP DELIVERED DUTY PAID INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER EXW Seller delivers when they place goods at the disposal ofbuyer at the sellers premises or another FAS Seller delivers when the goods are placed alongsidethe vessel at the named port. named place not cleared for export and not loaded on any collecting vehicle. Buyer bears all risks. Buyer has to bear all costs and risks of loss or damage to the goods from that moment. FCA Seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named FAS requires the seller to clear the goods for export. place. If delivery occurs at the seller’s premises, the seller is responsible for loading at sellers place. FOB Seller delivers when the goods pass the ship’s rail at the name port of shipment. Buyer CPT Seller delivers the goods to the carrier nominated by him. Seller pays costs to agreed destination. bear all the costs and risks of loss or damage to the goods from that point. Seller must Buyer bear all risks untill delivery to first carrier has taken place. clear the goods for export. CIP Samt as CPT Ͳ but insurance against the buyer’s risk of loss or damage to the goods during the carriage. FCA should be used if the parties do not intend to deliver the goods across ship’s rail. INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods CFR Seller delivers when the goods pass the ship’s rail in the port of shipment. are delivered. These costs are for account of seller. DAT Delivery to the terminal Ͳ unloaded / buyer customs clear cargo. Loss or damage to the goods, as well as any additional costs due to events occurring DAP Delivery to specified place, not unloaded / buyer customs clear cargo. after the time of delivery, are transferred from the seller to the buyer. DDP All cost + risk paid to specified delivery place, unloading at buyers place is not paid by seller. CIF Seller delivers when the goods pass the ship’s rail at the port of shipment. Seller must pay carriage, insurance and freight necessary to bring the goods to the named port of destination Seller must clear the goods for export INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER destination. Seller must clear the goods for export. Above terms are guidelines. For any questions please contact.: [email protected] INCOTERMS 2010 ENGLISH VERSION 1.0 SELLER BUYER

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