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Articles is a global informational site which offers you up to date trading
information and bring you the international trade practices as they pertain to a private
Incoterms (“International Commercial Terms") 2000
Incoterms are international rules and commonly used terms that are accepted worldwide in international
trading contracts.  Without the Incoterms 2000 terms can be misunderstandings, disputes and litigation
will come to rise.

The first version introduce by ICC was  incoterms 1936 in 1936.   ICC expert lawyers and trade
practitioners have updated them six times to keep pace with the development of international trade. The
latest edition of Incoterms, which came into force on  1 January 2000.  Unless parties decide otherwise,
earlier versions of Incoterms - like Incoterms 1990 - are still binding if incorporated in contracts that are
unfulfilled and date from before 1 January 2000.

Correct use of Incoterms goes a long way to providing the legal certainty upon which mutual confidence
between business partners must be based. To be sure of using them correctly, trade practitioners need
to consult the full texts of Incoterms  2000 (“International Commercial Terms")
Understanding The 13 Incoterms International Terms

•        Ex Works (EXW)
•        Free Carrier, (Named Place:) Seller's Premises or Named Place of Origin (FCA)
•        Free Alongside Ship, (Named Port of Shipment) (FAS)
•        Free on Board, (Named Port of shipment) (FOB)
•        Cost and Freight, (Port of Destination) (CFR)
•        Cost, Insurance and Freight, (Port of Destination) (CIF)
•        Carriage Paid To, (Named Place of Destination) (CPT)
•        Carriage and Insurance Paid To, (Named Place of Destination) (CIP)
•        Delivered at Frontier, (Named Place of Destination) (DAF)
•        Delivered Ex Ship, (Named Place of Destination) (DES)
•        Delivered Ex Quay, (Named Place of Destination) (DEQ)
•        Delivered Duty Unpaid, (Named Place of Destination) (DDU)
•        Delivered Duty Paid, (Named Place of Destination) (DDP)
Transport Chart

EXW – Ex Works (named place)
    The seller makes the goods available at his premises. The buyer is responsible for all

    This term may be the easiest to administer, however may not be in the seller's best interests.
    There is no control over the final destination of the goods. It may be possible for the seller to
    negotiate better freight rates than the buyer. A vehicle arriving to take delivery of the seller's
    goods under EXW may not be suitable for carriage.

FCA – Free Carrier (named place)
    The seller hands over the goods, cleared for export, into the custody of the first carrier   
    (named by the buyer) at the named place. This term is suitable for all modes of transport,
    including carriage by air, rail, road, and containerized / multi-modal transport.

FAS – Free Alongside Ship (named loading port)
    The seller must place the goods alongside the ship at the named port. The seller must
    clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for
    maritime transport only.

FOB – Free On Board (named loading port)
    The classic maritime trade term. The seller must load the goods on board the ship
    nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the
    goods for export. Maritime transport only.

CFR – Cost and Freight (named destination port)
    Seller must pay the costs and freight to bring the goods to the port of destination. However,
    risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime
    transport only.

CIF – Cost, Insurance and Freight  (named place of destination)
          The seller pays the cost of shipment up to the ship. The seller pays the insurance cargo
           freight cost up to destination port.

    The seller is required to arrange for the carriage of goods by sea to a port of destination,
    and provide the buyer with the documents necessary to obtain the goods from the carrier.
    Seller is required to clear the goods for export.
    The supplier is paid when the documents are turned over to the buyer at the port of loading.  
    The risk passes when the goods pass the ships rail at the time of delivery.

CPT – Carriage Paid To (named place of destination)
    The general/containerised/multimodal equivalent of CFR. The seller pays for carriage to t
    he named point of destination, but risk passes when the goods are handed over to the first

CIP – Carriage and Insurance Paid (To) (named place of destination)
    The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and
    insurance to the named destination point, but risk passes when the goods are handed over
    to the first carrier.

DAF – Delivered At Frontier (named place)
    This term can be used when the goods are transported by rail and road. The seller pays
    for transportation to the named place of delivery at the frontier. The buyer arranges for
    customs clearance and pays for transportation from the frontier to his factory. The passing
    of risk occurs at the frontier.

DES – Delivered Ex Ship (named port)
    Where goods are delivered ex ship, the passing of risk does not occur until the ship has
    arrived at the named port of destination and the goods made available for unloading to
    the buyer. The seller pays the same freight and insurance costs as he would under a CIF
    arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but
    also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading
    the goods and any duties, taxes, etc… are for the Buyer.  A commonly used term in
    shipping bulk commodities, such as coal, grain, dry chemicals - - - and where the seller
    either owns or has chartered, their own vessel.

DEQ – Delivered Ex Quay (named port)
    This is similar to DES, but the passing of risk does not occur until the goods have been
    unloaded at the port of destination.

DDU – Delivered Duty Unpaid (named destination place)
    This term means that the seller delivers the goods to the buyer to the named place of
    destination in the contract of sale. The goods are not cleared for import or unloaded
    from any form of transport at the place of destination. The buyer is responsible for the costs
    and risks for the unloading, duty and any subsequent delivery beyond the place of
    destination. However, if the buyer wishes the seller to bear cost and risks associated
    with the import clearance, duty, unloading and subsequent delivery beyond the place of
    destination, then this all needs to be explicitly agreed upon in the contract of sale.

DDP – Delivered Duty Paid (named destination place)
    This term means that the seller pays for all transportation costs and bears all risk until the
    goods have been delivered and pays the duty. Also used interchangeably with the term
    "Free Domicile". The most comprehensive term for the buyer.
Commercial Invoice
Packing List
Export Declaration
Certificate of Origin
Precarriage Bill of Lading
Export License
Other Governmental (EPA/FDA
Main Carriage Bill of Lading
Dock Receipt
Insurance Certificate
Import License
On-Carriage Bill of lading
Entry Documents
DOCUMENTS: Responsibility for Preparation
Seller = S
Buyer = B
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intermediary ...The scammer.