ARES ltd.

INCOTERMS (International commerce terms)

 

International commerce terms

 

 

CIF - cost, insurance, freight

CIP - carriage, insurance paid

CPT - carriage paid to

CFR - cost and freight

DAF - delivered at frontier

DEQ - delivered ex quay

DES - delivered ex ship

DDU - delivered, duty unpaid

DDP - delivered, duty paid

FCA - free carrier

FAS - free alongside ship

FOB - free on board

EXW - ex works

CIF - cost, insurance, freight

Meaning of the term

The term CIF (Cost Insurance and Freight Paid to) means that the seller bears the same responsibilities as required under the term CFR (Cost and freight paid to), but with the addition that the seller must procure marine insurance against the risk of loss and damage to goods. The seller contracts for insurance and pays the insurance premium. The buyer should note that under this term the seller is required only to obtain insurance on minimum coverage. This term may be used for transport by sea or inland waterway transport.

Related Documents

Documents required: Commercial Invoice invoice, transport documents, insurance policy or certificate, export license.

Available documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

CIP - carriage, insurance paid

Meaning of the term

The term CIP (Carriage and Insurance Paid to) means that the seller bears the same responsibilities as required under the term CPT (Carriage Paid To), but with the addition that the seller must procure transport insurance against the risk of loss and damage to goods. The seller contracts for insurance and pays the insurance premium. The buyer should note that under this term the seller is required only to obtain insurance on minimum coverage. This term may be used for any mode of transport, including in the case of multimodal transport.

Related Documents

Required Documents: commercial invoice, invoice, transport documents, insurance policy or certificate.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

CPT - carriage paid to

Meaning of the term

The term CPT (Carriage Paid To) means that the seller pays the freight for the carriage of goods to the agreed destination. The risk of loss and damage to the goods, as well as any additional costs that arise after the transfer of the goods passes from seller to the buyer when the goods are handed over to the carrier. According to the term CPT, the seller is carrying out customs formalities necessary for exportation of goods. This term may be used for all modes of transportation.

Related Documents

Required Documents: commercial invoice, invoice, transport document, export license

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

CFR - cost and freight

Meaning of the term

The term CFR (Delivered Duty Paid) means that the seller must pay the costs and freight necessary to deliver the goods to the port of destination but the risk of loss and damage to the goods, as well as the risk of any cost increases arising after the goods have vessel passes from the Seller the Purchaser at the time the goods pass the ship's rail at the port of shipment. Under the terms of CFR requires the seller to the implementation of customs formalities necessary for its removal. This term may be used to transport maritime mode of transport or inland waterways. If the time the goods pass the ship's rail has no practical significance, such as traffic conditions at the roll-on or roll-off or container traffic - it is expedient to use the term CPT.

Related Documents

Documents Required: Commercial Invoice invoice transport document, export license.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

DAF - delivered at frontier

Meaning of the term

The term DAF (Delivery at the border) means that the seller fulfills his obligation to deliver the goods, cleared for export, since its transfer to the Buyer at the agreed point at the border, but before delivery of goods at the customs border of the host country. The term \ boundary \ be used for any frontier including that country's exports. Therefore, in this case it is necessary to pinpoint the frontier by specifying a particular item or place. This term may be used for any mode of transport, including in the case of multimodal transport, however, is mainly used for rail and road transport.

Related Documents

Required Documents: commercial invoice, invoice, note, or Warehouse delivery order.

Available Documents: Through the transport document and other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

DEQ - delivered ex quay

Meaning of the term

The term DEQ (Delivered berth, with the payment of fees) means that the seller fulfills his obligation to deliver the goods when delivery is not cleared from customs duties when importing goods to the buyer on the quay (wharf) at the agreed port of destination. This term should not be used if the seller directly or indirectly, can not obtain an import license. If the parties agreed, that the customs formalities (perhaps partially) and payment of duties on importation for the seller instead of the words / without payment of duties / should write \ with the payment of fees \. This term may be used for maritime and inland waterway transport.

Related Documents

Required Documents: commercial invoice, invoice, bill of lading or Delivery Order, the import license.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

DES - delivered ex ship

Meaning of the term

The term DES (Delivered Ex Ship) means that the seller fulfills his obligation to deliver the goods since the granting of the vessel at the agreed port of destination of crude from customs duties when importing goods to the buyer. All costs and risks for delivery of goods in this case is the Seller. This term may be used for maritime and inland waterway transport.

Related Documents

Required Documents: commercial invoice, invoice, bill of lading or Delivery Order.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

DDU - delivered, duty unpaid

Meaning of the term

The term DDU (Delivered Duty Unpaid) means that the seller fulfills his obligation to deliver the goods when delivery of the goods at the agreed point in the country of importation. The seller must pay all related costs and bear all risks falling on the product, excluding taxes and other charges levied on the import of goods, as well as the costs and risks associated with the implementation of customs formalities. In case of default by the Buyer of customs formalities necessary for import, it has spawned all of the additional costs and it carries additional risks. This term may be used to transport any type of transport, including multimodal transport.

Related Documents

Required Documents: commercial invoice, invoice, delivery order, warrant or transport document.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

DDP - delivered, duty paid

Meaning of the term

The term DDP (Delivery Duty Paid) means that the seller fulfills his obligation to deliver the goods when placing the goods at the agreed point in the country of importation. The seller bears all risks and costs associated with the importation of goods, including payment of taxes, fees and other charges levied on imported goods. While the EXW term represents the seller's minimum obligation, DDP represents the maximum obligation of Seller. This term may be used to transport any type of transport, including multimodal transport.

Related Documents

Required Documents: commercial invoice, invoice, delivery order, warrant or transport document.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

FCA - free carrier

Meaning of the term

The term FCA - Free Carrier means that the seller fulfills his obligation to deliver the goods, cleared for export, since the transfer of its carrier, the Buyer at the agreed point. In the absence of the Buyers of such paragraph - The seller is entitled to determine its own among the number of such places, where the carrier takes the goods into his charge. When, under commercial practice, to conclude a contract of carriage should be assistance to the Seller (for transport by rail or air), it can act in such cases, the expense and risk of Buyer. This term may be used for any mode of transport, including in the case of multimodal transport. The carrier is any person who, under a contract of carriage, undertakes to implement the transport of goods by one type of transportation or multimodal transport. If the Buyer authorizes the Seller to transfer the goods to a non-carrier, such as forwarding agent, the seller fulfills his obligation to deliver the goods since its transfer to that person. It should be noted that the choice of place of delivery affect the obligations of loading and unloading of goods at that place. If delivery occurs at the seller's premises, the seller is responsible for the shipment. If delivery occurs at any other place, the seller of the shipment is not responsible.

Related Documents

Documents Required: Commercial Invoice invoice, the standard proof of transfer of the goods, export license.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

FAS - free alongside ship

Meaning of the term

The term FAS - Free Alongside Ship means the seller fulfills his obligation to deliver when the goods are placed alongside the vessel on the quay or in lighters at the agreed port of shipment. Since then, Purchaser shall pay all costs and risks of loss or damage to goods. Under the terms of FAS requires the seller to the implementation of customs formalities necessary for exportation of goods. This term should not be used when the buyer directly or indirectly, not in a position to fulfill the formalities required for export. The term FAS can be used only for sea or inland waterway transport.

Related Documents

Documents Required: Commercial Invoice, Invoice, Receipt Recipient (usually the captain's receipt).

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

FOB - free on board

Meaning of the term

The term FOB (free on board) means that the seller fulfills his obligation to deliver when the goods pass the ship's rail at the agreed port of shipment. In this case, the buyer bears all costs and risks of loss or damage to goods. The FOB requires the seller to the implementation of customs formalities necessary for its removal. This term may be used to transport maritime mode of transport or inland waterways. If the time the goods pass the ship's rail has no practical significance, such as traffic conditions at the roll-on or roll-off or container traffic - it is expedient to use the term FCA.

Related Documents

Required Documents: commercial invoice, invoice, confirmation of receipt of the goods, export license.

Available Documents: Other documents required for exportation or transit of goods through a third country or for the completion of customs formalities of import.

EXW - ex works

Meaning of the term

Condition EXW (ex works) means that the only obligation of the seller to deliver the goods is to deliver the goods in your company (eg: factory, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise indicated. Buyer bears all costs and risks involved in taking the goods from that point to your destination. This condition holds, so the minimum obligation for the seller. This condition can not be applied when the buyer is unable to directly or indirectly (through intermediaries), the export formalities. In the latter case, the condition should apply FCA - Free Carrier.

Related Documents

Documents Required: Commercial Invoice invoice.

Available Documents: Other documents required for the execution formalities for shipment.