The purpose of Incoterms is to provide a set of international rues for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms are mitigated. PWS’ well versed staffed is fully capable of assisting you with properly using and interpreting the terms.
The following chart provides a graphical representation of the key points of each Incoterm. The current standard is Incoterms 2000.
| |
Inland Freight Export Country |
Vessel Loading |
Ocean/Air Freight |
Export Insurance |
Vessel Unloading |
Import Duties |
Inland Freight Buyers Country |
Where does risk pass? |
Mode |
| GROUP E |
E TERMS MINIMIZE THE SELLERS RISK AS THEY ONLY HAVE TO MAKE GOODS AVAILABLE FOR EXPORT AT THEIR WAREHOUSE |
| EXW |
Buyer assumes all costs |
Seller Premises |
MULTI |
| GROUP F |
UNDER F TERMS, UNLESS OTHERWISE AGREED, THE SELLER PAYS AND ARRANGES FOR PRE-CARRIAGE IN THE COUNTRY OF EXPORT |
| FCA |
|
|
Named Carrier
Named Point |
MULTI |
| FAS |
|
|
Alongside vessel in port of export |
WATER |
| FOB |
|
|
On crossing the ships rail while loading at origin port.
|
WATER |
| GROUP C |
UNDER C TERMS, THE SELLER ARRANGES AND PAYS FOR THE MAIN CARRIAGE, BUT DOES NOT ASSUME THE RISK OF THE MAIN CARRIAGE |
| CFR |
|
|
On crossing the ships rail while loading at origin port. |
WATER |
| CIF |
|
|
On crossing the ships rail while loading at origin port. |
WATER |
| CPT |
|
|
When delivered to first carrier |
MULTI |
| CIP |
|
|
When delivered to first carrier |
MULTI |
| GROUP D |
D TERMS MAXIMIZE THE SELLERS RISK AS THEY HAVE TO MAKE THE GOODS AVAILABLE UPON ARRIVAL AT THE AGREED DESTINATION |
| DAF |
|
|
|
Named frontier |
|
| DES |
|
|
On the ship when it reaces the port of import. |
WATER |
| DEQ |
|
|
On the dock at named destination |
WATER |
| DDU |
|
|
|
At the named destination |
MULTI |
| DDP |
Seller assumes all costs |
At the named destination |
MULTI |
