It is essential to know about incoterms (International Commercial Terms) if you are in a business related with international trade; especially if you are an importer, exporter, lawyer, transporter or insurer.
Incoterms have been published by the International Chamber of Commerce and they are used worldwide with the same meaning for making international trade easier for every business around the world.
When you physically move products between countries, there are certain costs that need to be paid. Incoterms basicly indicate “who pays for what” about this shipment process.
You may find all the detailed explanations of the 11 incoterms in the ICC website.
RULES FOR ANY MODE OR MODES OF TRANSPORT
- EXW Ex Works
- FCA Free Carrier
- CPT Carriage Paid To
- CIP Carriage And Insurance Paid To
- DAT Delivered At Terminal
- DAP Delivered At Place
- DDP Delivered Duty Paid
RULES FOR SEA AND INLAND WATERWAY TRANSPORT
- FAS Free Alongside Ship
- FOB Free On Board
- CFR Cost and Freight
- CIF Cost, Insurance and Freight