INCOTERMS© RULES

Session 6 – 24 April 2019

EXW – EX WORKS

2

EXW [named place] Incoterms 2010All means of transport

Seller Buyer

Seller Buyer

Seller: Risk passes when the goods are at the disposal of the buyer at named place.

Buyer: Takes over the goods at the agreed place of disposal.

Risk

Costs

Insurance Seller Buyer

FCA – FREE CARRIER

3

FCA [named place] Incoterms 2010All means of transport

Seller Buyer

Seller Buyer

Seller: Delivers the goods to the carrier at named place

Buyer: Appoints a carrier and concludes transport agreement for the main transport

Risk

Costs

Insurance Seller Buyer

FAS – FREE ALONGSIDE SHIP

4

FAS [named port of shipment] Incoterms 2010Sea transport

Seller Buyer

Seller Buyer

Seller: Risk passes when the goods have been placed alongside the ship.

Buyer: Appoints a carrier and concludes transport agreement for the main transport.

Risk

Costs

Insurance Seller Buyer

FOB – FREE ON BOARD

5

FOB [named port of shipment] Incoterms 2010Sea transport

Seller Buyer

Seller Buyer

Seller: Risk transfers when the goods are on board vessel at the port of export (origin).

Buyer: Appoints a carrier and concludes transport agreement for the main transport.

Risk

Costs

Insurance Seller Buyer

CFR – COST AND FREIGHT

6

CFR [port of destination] Incoterms 2010Sea transport

Seller Buyer

Seller

Risk

Costs

Seller: Risk transfers when the goods are on board vessel at the port of export (origin), but costs to be paid to the port of destination.

Buyer: Risk transfers to buyer once the goods have been loaded on board the vessel.

SellerInsurance Buyer

Buyer

CIF – COST, INSURANCE AND FREIGHT

7

CIF [port of destination] Incoterms 2010Sea transport

Seller Buyer

Seller

Risk

Costs

Seller: Goods to be delivered on board the vessel at the port of export (origin)

Take out Marine Cargo insurance for buyer’s risk

Buyer: Risk transfers to buyer once the goods have been loaded onboard the vessel for main carriage

Buyer

Seller to take out Cargo Insurance for Buyer’sriskSellerInsurance Buyer

Buyer

CPT – CARRIAGE PAID TO

8

CPT [named place of destination] Incoterms 2010All means of transport

Seller Buyer

Seller

Risk

Costs

Seller: Goods to be delivered to the main carrier at place of export (origin).

Buyer: Risk transfers to buyer once the goods are taken in charge by the carrier.

Buyer

SellerInsurance Buyer

CIP – CARRIAGE AND INSURANCE PAID TO

9

CIP [named place of destination] Incoterms 2010All means of transport

Seller Buyer

Seller

Risk

Costs

Seller: Goods to be delivered to the main carrier at place of export (origin)

Take out Marine Cargo insurance for buyer’s risk

Buyer: Risk transfers to buyer once the goods have been loaded for main carriage

Buyer

Seller to take out Cargo Insurance for Buyer’s riskSellerInsurance Buyer

DAT – DELIVERED AT TERMINAL

10

DAT [named place] Incoterms 2010All means of transport

Seller Buyer

Seller

Risk

Costs

Seller: When the goods once unloaded from the arriving means of transport and placed at the disposal of the buyer at the named place

Buyer: Risk transfers to buyer when the goods have been unloaded at named place

Buyer

SellerInsurance

Buyer

Buyer

DAP - DELIVERED AT PLACE

11

DAP [named place of destination] Incoterms 2010All means of transport

Seller Buyer

Seller

Risk

Costs

Seller: When the goods are placed at the disposal of the buyer on the arriving means of transport and ready for unloading at the named place of destination

Buyer: Risk transfers to buyer when the goods are available for unloading

Buyer

SellerInsurance

Buyer

Buyer

DDP – DELIVERED DUTY PAID

12

DDP [named place of destination] Incoterms 2010All means of transport

Seller Buyer

Seller

Risk

Costs

Seller: When the goods are placed at the disposal of the buyer on the arriving means of transport and ready for unloading at the named place of destination

Buyer: Risk transfers to buyer when the goods are made available to the buyer

Buyer

SellerInsurance

Buyer

Buyer