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INCOTERMS

  Incoterms; ICC- A set of rules governing the responsibilities of both parties, including the types of delivery transport used by the International Chamber of Commerce to transport the goods to the place of delivery. The Four Incoterms (DAF, DES, DEQ, DDU) have been replaced by two new Incoterms (DAT, DAP).

USES FOR ALL TRANSPORT TYPES DELIVERY TYPES

EX WORKS – EXW

  Exw is also known as delivery at work. Exporter at work, in the factory, warehouse delivers the product. The only thing that needs to be done is to pack the products sold. The importer takes full responsibility. The buyer must carry out all tasks of export & import clearance. Carriage & insurance is arranged by the buyer.

FREE CARRIER- FCA

 Can be used for any transport mode, or where there is more than one transport mode. The delivery of the goods to the carrier designated by the importer at the designated place in the exporter's country. The seller must deliver the goods as customs cleared for export. Seller pays for carriage to the named place.

CARRIAGE PAID TO-CPT

  This term means that the seller delivers the goods to the carrier. The seller must deliver a carrier's choice and pay the transportation costs up to the seller's specified destination. Once the products are delivered, the risk and other costs shall be borne by the purchaser.

 

CARRIAGE AND INSURANCE PAID TO- CIP

    Carriage and Insurance paid to is an Incoterm where the seller is responsible for the delivery of the goods. Delivered with the same conditions as CPT. The only difference between Cpt and CIP; insurance. The risk is passed when the goods are received by the first carrier.

 

DELIVERED AT TERMINAL- DAT

   Delivery at the terminal. It is the delivery of the goods to the buyer at the terminal designated by the buyer and the seller, the unloading costs being borne by the seller. All customs procedures, costs, duties and taxes incurred at customs are the responsibility of the buyer.

DELIVERED AT PLACE- DAP

   Delivery at designated place; Delivery at the specified location. Goods in importing country and All costs (excluding taxes) are to be paid to the buyer.

DELIVERED DUTY PAID- DDP

  Delivered duty paid. The seller must pay customs duties in the importer's country. The buyer pays only the cost of the goods and is obliged to receive the goods.  Risk is passed from seller to buyer when goods are given to buyer.

 

2-DELIVERY TYPES USED IN SEA AND INLAND WATERS

FREE ALONGSIDE SHIP- FAS

   Delivery next to the ship. This term can be used for sea and ınland waterway only. The seller delivers the goods to the region of the ship in the port.  The buyer is responsible for loading the goods and all costs thereafter.

 

FREE ON BOARD- FOB

  Delivery by loading on board. Customs clearance is carried out by the exporter. The buyer pays the cost of goods, customs duties and freight. The seller passes the goods to the buyer after loading the goods.

COST AND FREIGHT- CFR

   Freight is paid. The seller undertakes all costs and risks up to the specific destination port. Insurance and other costs are the responsibility of the importer. The seller does not need to take out marine insurance against the risk of loss or damage during transportation.

 

COST, INSURANCE AND FREIGHT- CIF

   Charges, Freight and Insurance Paid is the type of delivery. The same conditions as CFR. The only difference is that insurance in the form of delivery. In addition, if the product requires additional customs or export documents or requires inspection, the seller must bear these costs. Once the load is loaded, the buyer is responsible for all other costs.

 

REFERENCE

https://blog.intradebook.com/en/what-are-incoterms-international-commercial-terms/

https://www.ihracat.co/p/incoterms.html

https://internationalcommercialterms.guru/incoterms/

https://www.aitworldwide.com/Incoterms-DDP

http://www.flamingo-shipping.com/en/page/dap.html