INCOTERMS 2000
Chart of Responsibility
When negotiating an international sales contract, both parties need to pay as
much attention to the terms of sale as to the sales price. To make it as clear
as possible, an international set of trade terms (INCOTERMS) has been adopted by
most countries that defines exactly the responsibilities and risks of both the
buyer and seller including while the merchandise is in transit.
The following chart summarizes the responsibilities of both the buyer and
seller for each of the current 13 INCOTERMS. In addition, a definition for each
term is included at the bottom of the page.
For a more complete description of each of the INCOTERMS,
The IBT Guide to INCOTERMS
2000 book published by International Business Training fully and
clearly defines each of the new INCOTERMS that became effective January 1, 2000,
and includes a number of case studies that demonstrate the use of the different
terms in real-life situations.
|
EXW |
FCA |
FAS |
FOB |
CFR |
CIF |
CPT |
CIP |
DAF |
DES |
DEQ |
DDU |
DDP |
SERVICES |
Ex Works |
Free Carrier |
Free
Alongside Ship |
Free Onboard Vessel |
Cost &
Freight |
Cost Insurance & Freight |
Carriage Paid
To |
Carriage Insurance Paid To |
Delivered At
Frontier |
Delivered Ex Ship |
Delivered Ex
Quay Duty Unpaid |
Delivered Duty Unpaid |
Delivered
Duty Paid |
Warehouse Storage |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Warehouse Labor |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Export Packing |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading Charges |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Inland Freight |
Buyer |
Buyer/
Seller* |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Terminal Charges |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Forwarder's Fees |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading On Vessel |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Ocean/Air Freight |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Charges On Arrival At Destination |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Duty, Taxes & Customs Clearance |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Delivery To Destination |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
* There are actually two FCA terms: FCA Seller's Premises where the seller is
responsible only for loading the goods and not responsible for
inland freight; and FCA Named Place (International Carrier) where the seller
is responsible for inland freight.
The 13 INCOTERMS
Origin Terms
EXW - Ex-Works, named place where shipment is available to the buyer, not
loaded.
The seller will not contract for any transportation.
International Carriage NOT Paid by Seller
FCA - Free Carrier, unloaded at the seller's dock OR a named place where
shipment is available to the international carrier or agent, not loaded.
This term can be used for any mode of transport.
FAS - Free Alongside Ship, named ocean port of shipment.
Ocean shipments that are NOT containerized.
FOB - Free On Board vessel, named ocean port of shipment.
This term is used for ocean shipments only where it is important that the goods
pass the ship's rail.
International Carriage Paid by the Seller
CFR - Cost and Freight, Named ocean port of destination.
This term is used for ocean shipments that are not containerized.
CIF - Cost, Insurance and Freight, named ocean port of destination.
This term is used for ocean shipments that are not containerized.
CPT - Carriage Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
CIP - Carriage and Insurance Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
Arrival At Stated Destination
DAF - Delivered At Frontier, named place of destination, by land, not
unloaded.
This term is used for any mode of transportation but must be delivered by land.
DES - Delivered Ex-Ship, named port of destination, not unloaded.
This term is used for ocean shipments only.
DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.
This term is used for ocean shipments only.
DDU - Delivered Duty Unpaid, named place of destination, not unloaded,
not cleared.
This term is used for any mode of transportation.
DDP - Delivered Duty Paid, named place of destination, not unloaded,
cleared.
This term is used for any mode of transportation.
"INCOTERMS 2000" is one in a series of short articles published by
International Business Training, a division of InterMart, Inc. These articles
are designed to help businesses and individuals succeed in the global
marketplace.
For more information about a variety of import and export publications,
self-study courses and seminars designed specifically for small and mid-sized
companies, visit our web page at www.i-b-t.net.
The laws, regulations, procedures, requirements, methods, interpretations and
other information contained in this article are subject to change and
therefore the reader should not rely solely on this guide in dealing with the
commercial laws of the United States or foreign countries. Errors and
omissions, typographical, clerical and otherwise, sometimes occur and it is
possible that errors have occurred in respect to anything printed in this
article.
(c) 2000 International Business Institute, Inc.
Used with permission by InterMart, Inc., PO Box 22267, Eagan, MN 55122-0267
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