Incoterms

The incoterms define the distribution of transport costs between the vendor and the buyer and determine the place of where the risks go from the vendor to the buyer. They also define who has to ensure documentation and at from what point the responsibility changes from vendor to buyer. Incoterms are binding as from the point of agreement. Contractual special agreements have priority. Our descriptions and demonstration serve only as an overview. The exact contents and clauses should therefore be checked before a contractual application.

EXW - Ex work (...named departure)

(Ex works) - group E (carriage unpaidl)
EXW is for the exporter the most cost effective clause. He has the agreed goods at an agreed date ready on his company premises and has fulfilled his responsibilities resulting from the sale contract. As from this point all transport charges, risks and taxes and duties have to be carried from the buyer.

EXW - Ex work (...named departure)

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FCA - Free carrier (...named departure)

(Free carrier) - group F (main transport paid by the buyer)
Title and risk pass to buyer including transportation and insurance cost when the vendor delivers goods cleared for export to the carrier. up until this point the vendor carries all the costs sof transport and the risk. The vendor is obligated to load the goods on the buyer's collecting vehicle if the named departure is at the vendors premises.

FCA - Free carrier (...named departure)

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FAS - Free Alongside Ship (...named port of departure)

(Free alongside ship) - group F (main transport paid by the buyer)
The vendor brings the goods along side ship of the named port of departurre. As from this point all transport costs and risks go over to the buyer. The export clearance obligation rests with the vendor.

FAS - Free Alongside Ship (...named port of departure)

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CFR - Cost and freight (...named port of destination)

(Cost and Freight) - group C (main transport paid by the vendor)
The vendor carries the transport costs up to to the port of destinaiton. The risk however goes over to the buyer at the point of on board (just like fob) The export clearance obligation rests with the vendor.

CFR - Cost and freight (...named port of destination)

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CIF - cost, insurance freight (...named port of destination)

(Cost, insurance and Freight) - group C (main transport paid by the vendor)
The vendor pays transport costs up to the port of destination and the export clearance obligations rests with him. He has an insurance to cover him from the risks and he is liable for the cost of this insurance.

CIF - cost, insurance freight (...named port of destination)

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CPT - carriage paid (...named destination)

(Carriage paid to) - group C (main transport paid by the vendor)
The vendor pays the transport costs up to the agreed destination. The transport risk goes over to the buyer upon handing over the goods. The export clearance obligation rests with the vendor.

CPT - carriage paid (...named destination)

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CIP - carriage insurance paid (...named destination)

(Carriage and insurance paid to) - group C (main transport paid by the vendor)
CIP corresponds widely CPT, however the vendor has to obtain an insurance and pay for it. (Minimum cover).

CIP - carriage insurance paid (...named destination)

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DAF - delivery frontier (...named destination)

(Delivered at frontier) - group F ( destination clause)
The vendor carries the cost of transport and risk to the agreed frontier. The goods are not offloaded and remain on the means of transport of the vendor. The export clearance obligation rests with the vendor.

DAF - delivery frontier (...named destination)

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DES - delivery ex ship (...named port of destination)

(Delivered ex ship) - group F ( destination clause)
The vendor provides the goods at the named port of destination and he has to carry the cost of transport and risks up to the unloading. The export clearance obligation rests also with him.

DES - delivery ex ship (...named port of destination)

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DEQ - delivery ex quay (...named port of destination)

(Delivered ex quay) - group F ( destination clause)
The vendor provides the goods at the named port of destination and he has to carry the cost of transport and risks right up to up to the discharge. The import clearance is carried by the buyer.

DEQ - delivery ex quay (...named port of destination)

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DDU - delivery, duties unpaid (... named point of destination)

(Delivered duty unpaid) - group F ( destination clause)
The goods are being delivered , duties unpaid, at the cost of the vendor to the named point of destination. The vendor also carries the transport risks until that point. After that transport costs and risks go over to the buyer.

DDU - delivery, duties unpaid (... named point of destination)

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DDP - delivery and duties paid (... named point of destination)

(Delivered duty paid) - group F ( destination clause)
The vendor pays for all transport costs and carries the transport risks to the named point of destination. He is also responsible for the customs clearance as well as any duties payable in the country of destination.

DDP - delivery and duties paid (... named point of destination)

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