Incoterms
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incoterms very helpful notes for understanding the rules and responsibilities of buyers and sellers.
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Incoterms
- 2. Incoterms – International Commercial Terms Incoterms are shipping and trade terms used to define responsibility between the importer and exporter for freight, insurance and other costs e.g. loading, unloading expenses etc. The terms are published in the Guide to Incoterms 2000 published by the International Chamber of Commerce, Paris, France, and are used worldwide.
- 3. Always 3-letter code plus named placeAlways 3-letter code plus named place (port, place of receipt, …)(port, place of receipt, …) e.g.:e.g.: FOB Plymouth orFOB Plymouth or FAS Victoria QuayFAS Victoria Quay 13 Terms 4 categories E (exit) EXW F (free)FCA, FAS, FOB C(cost) CFR, CIF, CPT, CIP D(delivery) DAF, DES, DEQ, DDU, DDP
- 4. Group E departure EXW Ex Works (… named place) Group F Main carriage unpaid FCA Free Carrier (…named place) FAS Free Alongside Ship (…named place) FOB Free On Board (…named port of shipment) Group C Main Carriage Paid CFR Cost and Freight (…named port of destination) CIF Cost Insurance and Freight (…named port of destination) CPT Carriage Paid To (…named place of destination) CIP Carriage Insurance Paid To (…named place of destination) Group D Arrival DAF Delivered at Frontier (…named place) DES Delivered Ex Ship (…named port of destination) DEQ Delivered Ex Quay (…named port of destination) DDU Delivered Duty Unpaid (…named place of destination) DDP Delivered Duty Paid (…named place of destination)
- 5. Incoterms – The Abbreviations: E, F, C and D Terms “EXW” - Represents the seller’s minimum obligation. “F” - Terms signifies that the Seller must hand over the goods to a nominated carrier FREE of risk and expenses to the buyer. “C” - Terms signifies that the Seller must bear certain COSTS even after the title has passed. “D” - Terms signifies that the goods must arrive at a stated DESTINATION and the Seller undertakes to arrange and pay for the contract of carriage and insurance.
- 6. Diagram of the Incoterms EXW FCA FAS FOB DEQ DES CPT CIP DDU DDP (DAF) DAF CFR CIF (DAF)
- 7. Incoterms – Concept EXW Ex Works FOB Free On Board CFR Cost & Freight Exporter Importer Cargo Insurance DDP Delivered Duty Paid Title to Cargo & Responsibility for freight cost and/or insurance
- 8. The seller fulfills his obligation to deliver when he has made the goods available at his premises or another named place, such as the factory or warehouse, to the buyer. Carriage - To be arranged by the Buyer Cost transfer - From the seller to the buyer when the goods are at the disposal of the buyer. Not cleared for export No loading expenses on seller of collecting vehicle OK OK e EXW - Ex Works … named place
- 9. EXW Ex Works …(named place) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 9
- 10. F-Term • The “F” –terms require the seller to deliver goods for carriage as instructed by the buyer. • FCA • FAS • FOB
- 11. The seller fulfills his obligation when he delivers the goods into the custody of the carrier at the named point. Carriage - To be arranged by the buyer or by the seller on the buyer’s behalf. Cost transfer - From the seller to the Buyer when the goods have been Delivered to the carrier at the named place.. Seller obligated to load goods on arriving vehicle if it arrives at the seller’s premises OK e FCA - Free Carrier … named place
- 12. FCA Free Carrier…(named place) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 12
- 13. The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods. The FAS term requires the seller to clear the goods for receipt. Carriage - To be arranged by the buyer. Cost transfer - From the seller to the buyer when the goods have been placed alongside the ship. Seller obliged to clear goods for export. e FAS – Free Alongside Ship … named port of shipment (Ship only).
- 14. FAS Free Alongside…(named place) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 14
- 15. The seller fulfills his obligation to deliver when the goods are placed on board a ship at the named port of shipment. All costs from that point forward, including freight and insurance, are for the buyer’s account. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods pass the ship rail. The buyer bears all costs and risks of loss or damage to the goods from that point Seller delivers when goods, cleared for export, pass the ship’s rail at the named port of shipment. e FOB – Free On Board … named port of shipment (Ship only).
- 16. FOB Free On Board…(named port of shipment) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 16
- 17. C-Terms • The “C” –terms require the seller to contract for carriage at his expense – to a specified point. • CFR • CIF • CPT • CIP
- 18. The seller must pay the costs and freight to bring the goods to the named destination, but the risk of loss or damage are transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. The seller pays the costs and freight necessary to bring goods to port of destination, but the buyer bears the risk of loss and additional costs occurring after delivery. Carriage - To be arranged by the seller. Cost transfer – At port of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage. Example – CFR SINGAPORE e CFR – Cost & Freight … named point of destination (Ship only).
- 19. CFR Cost and Freight …(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 19
- 20. The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk of loss or damage are transferred to the buyer. Carriage - Carriage and insurance to be arranged by the seller. Cost transfer – At port of destination, buyer paying such cost as are not for the seller’s account under the contract of carriage. e CIF – Cost, Insurance & Freight … named port of destination (Ship only).
- 21. CIF Cost, Insurance and Freight …(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Costs Buyer’s Cost 21
- 22. The seller delivers the goods to the carrier nominated by him, but the seller must also pay the cost of carriage to bring the goods to the named destination. The buyer bears all risks and any other costs occurring after the goods have been so delivered. CPT – Carriage Paid To … named place of destination. Carriage - To be arranged by the seller. Cost transfer – At the port of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage. e CPT – Carriage Paid To … named place of destination.
- 23. CPT Carriage Paid To …(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Costs 23
- 24. The seller delivers the goods to the carrier and also procures insurance against the risk of loss or damage during carriage. This term allows the exporter the greatest control over all aspects of shipment. CIP- Carriage and Insurance Paid To … named place of destination. Carriage - And insurance arranged by the seller. Cost transfer – At place of destination, the Buyer paying such costs as are not for the seller’s account under the contract of carriage.. e CIP- Carriage and Insurance Paid To … named place of destination.
- 25. CIP Carriage and Insurance Paid To …(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 25
- 26. D-Terms • The “D” –terms require the seller to take the goods all the way to destination at the border or within the country of import. • DAF • DES • DEQ • DDU • DDP
- 27. The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named place at the frontier, but before the customs border of the adjoining country. This term is used typically when goods are being moved overland and delivery will take place at the frontier. DAF – Delivered At Frontier … named place. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods have been delivered at the frontier e DAF – Delivered At Frontier … named place.
- 28. DAF Delivered At Frontier…(named place) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 28
- 29. The seller delivers when the goods are placed at the disposal of the buyer on board the ship, not cleared for import at the named port of destination. The seller must bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship. e DES – Delivered Ex-Ship … named port of destination (Ship only).
- 30. DES Delivered exShip…(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 30
- 31. The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay at the named port of destination. The seller bears costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on the quay. e DEQ – Delivered Ex Quay … named port of destination (Ship only).
- 32. DEQ Delivered Ex Quay…(named port of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 32
- 33. The seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the full cost and risk involved in bringing the goods thereto other than any duties. Duty is borne by the buyer. DDU – Delivered Duty Unpaid … named place of destination. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer. e DDU – Delivered Duty Unpaid … named place of destination.
- 34. DDU Delivered Duty Unpaid…(named place of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 34
- 35. The seller delivers the goods when cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller must bear all costs and risks involved in bringing the goods thereto including any duties. . Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer. e DDP – Delivered Duty Paid …named place of destination
- 36. DDP Delivered Duty Paid…(named place of destination) SELLER BUYER Seller/ Exporter Premises Export Documents Formalities Delivered at named place of: Frontier/ Terminal/ Quay Loading Port of Shipment Onboard Ship Rail Plane Ship’s Ship’s Rail Rail Discharging Port of Arrival Delivery at named place of destination: Frontier/ Terminal/Quay Import Documents Formalities Buyer/ Importer Premises Seller’s Risks Buyer’s Risks Seller’s Cost Buyer’s Cost 36
- 37. Mode of Transport and Appropriate Incoterm - Any Mode of Transport • EXW • FCA • CPT • CIP • DAF • DDU • DDP
- 38. Mode of Transport and Appropriate Incoterm – Maritime. • FAS • FOB • CFR • CIF • DES • DEQ
- 39. OK OK OK OK e Incoterms - Summary The International Commercial Terms, or Incoterms, is the accepted standard for buyers and sellers worldwide to precisely determine who pays for freight, insurance and customs duties. They also determine at which point in the logistics movement of goods title transfer takes place during transit.
- 40. EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP SERVICE S Ex Works Free Carrier Free Alongsi de Ship Free Onboard Vessel Cost & Freight Cost Insurance & Freight Carria ge Paid To Carriage Insurance Paid To Delive red At Fronti er Delivere d Ex Ship Delivered Ex Quay Duty Unpaid Delivere d Duty Unpaid Delivered Duty Paid Warehou se Storage Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Warehou se 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 Forward er'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/A ir Freight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Charges On Arrival At Destinati on Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Buyer Buyer Seller Seller Seller Duty, Taxes & Customs Clearanc e Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Delivery To Destinati on 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.
Editor's Notes
- This section of the eUCP Internet Letter of Credit Workshop is on the International Commercial Terms, or INCOTERMS, used to denote title transfer and logistics cost responsibility between the importer and exporter during the transportation of goods and services.
- Incoterms are shipping and trade terms used to define responsibility between the importer and exporter for freight, insurance and title transfer of goods and services. The terms are published in the Guide to Incoterms 2000, published by the International Chamber of Commerce, Paris, France, and are used worldwide.
- Incoterm abbreviations start with E, F, C and D. “EXW” - Represents the seller’s minimum obligation. “F” - Terms signifies that the Seller must hand over the goods to a nominated carrier FREE of risk and expenses to the buyer. “C” - Terms signifies that the Seller must bear certain COSTS even after the title has passed. “D” - Terms signifies that the goods must arrive at a stated DESTINATION and the Seller undertakes to arrange and pay for the contract of carriage and insurance.
- Incoterms are used in international trade with all payment methods, to include Documentary and Standby Letters of Credit, Trade Credits, International and Direct Collections, and Open Account transactions. Their purpose is to specify to all the parties involved in the transaction whether the importer or exporter is responsible for paying for the cost of freight, cargo insurance and customs fees. Incoterms also denote where during the movement of cargo title passes from the importer to the exporter.
- EXW means Ex Works; and can be used with any mode of transportation. The seller fulfills his obligation to deliver when he has made the goods available at his premises or another named place, such as the factory or warehouse, to the buyer. EXW - Ex Works … named place Carriage - To be arranged by the Buyer Cost transfer - From the seller to the buyer when the goods are at the disposal of the buyer. Example - EXW CARLSBAD
- FCA means Free Carrier; and can be used with any mode of transportation. The seller fulfills his obligation when he delivers the goods into the custody of the carrier at the named point. Used for multimodal transport such as container or roll on – roll off. FCA – Free Carrier … named place Carriage - To be arranged by the buyer or by the seller on the buyer’s behalf. Cost transfer - From the seller to the Buyer when the goods have been Delivered to the carrier at the named place.. Example - FCA CARLSBAD
- FAS means Free Alongside Ship; and can only be used with a ship mode of transportation. The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods. The FAS term requires the seller to clear the goods for receipt. FAS – Free Alongside Ship … named port of shipment (Ship only). Carriage - is To be arranged by the buyer. Cost transfer – is From the seller to the buyer when the goods have been placed alongside the ship. Example – FAS LONG BEACH.
- FOB means Free on Board; and can only be used with a ship mode of transportation. The seller fulfills his obligation to deliver when the goods are placed on board a ship at the named port of shipment. All costs from that point forward, including freight and insurance, are for the buyer’s account. FOB – Free On Board … named port of shipment (Ship only). Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods pass the ship’s rail. Example – FOB LONG BEACH
- CFR means Cost and Freight, and can only be used with a ship mode of transportation. The seller must pay the costs and freight to bring the goods to the named destination, but the risk of loss or damage are transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. CFR – Cost & Freight … named point of destination (Ship only). Carriage - To be arranged by the seller. Cost transfer – At port of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage. Example – CFR SINGAPORE
- CIF means Cost, Insurance and Freight; and can only be used with ship mode of transportation. The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk of loss or damage are transferred to the buyer. CIF – Cost, Insurance & Freight … named port of destination (Ship only). Carriage - Carriage and insurance to be arranged by the seller. Cost transfer – At port of destination, buyer paying such cost as are not for the seller’s account under the contract of carriage. Example – CIF SINGAPORE.
- CPT means Carriage Paid To; and can be used with any mode of transportation. The seller delivers the goods to the carrier nominated by him, but the seller must also pay the cost of carriage to bring the goods to the named destination. The buyer bears all risks and any other costs occurring after the goods have been so delivered. CPT – Carriage Paid To … named place of destination. Carriage - To be arranged by the seller. Cost transfer – At the port of destination, buyer paying such costs as are not for the seller’s account under the contract of carriage. Example – CPT SINGAPORE.
- CIP means Carriage and Insurance Paid To; and can be used with any mode of transportation. The seller delivers the goods to the carrier and also procures insurance against the risk of loss or damage during carriage. This term allows the exporter the greatest control over all aspects of shipment. CIP- Carriage and Insurance Paid To … named place of destination. Carriage - And insurance arranged by the seller. Cost transfer – At place of destination, the Buyer paying such costs as are not for the seller’s account under the contract of carriage. Example – CIP SINGAPORE.
- C-terms – shipment D-terms – destination, buyer clears goods for import.
- DAF means Delivered At Frontier; and cannot be used with ship or air mode of transportation. The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named place at the frontier, but before the customs border of the adjoining country. This term is used typically when goods are being moved overland and delivery will take place at the frontier. DAF – Delivered At Frontier … named place. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods have been delivered at the frontier. Example – DAF LAREDO
- DES means Delivered Ex-Ship; and can only be used with ship mode of transportation. The seller delivers when the goods are placed at the disposal of the buyer on board the ship, not cleared for import at the named port of destination. The seller must bear all the costs ad risks involved in bringing the goods to the named port of destination before discharging. DES – Delivered Ex-Ship … named port of destination (Ship only). Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship. Example – DES SINGAPORE
- DEQ means Delivered Ex Quay; and can only be used with ship mode of transportation. The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay at the named port of destination. The seller bears costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay. DEQ – Delivered Ex Quay … named port of destination (Ship only). Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on the quay. Example – DEQ SINGAPORE
- DDU means Delivered Duty Unpaid; and can be used with any mode of transportation. The seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the full cost and risk involved in bringing the goods thereto other than any duties. Duty is borne by the buyer. DDU – Delivered Duty Unpaid … named place of destination. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer.. Example – DDU ROTTERDAM.
- DDP means Delivered Duty Paid; and can be used with any mode of transportation. The seller delivers the goods when cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller must bear all costs and risks involved in bringing the goods thereto including any duties. DDP – Delivered Duty Paid …named place of destination. Carriage - To be arranged by the seller. Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer. Example – DDP ROTTERDAM.
- Incoterms in Summary: The International Commercial Terms, or Incoterms, is the accepted standard for buyers and sellers worldwide to precisely determine who pays for freight, insurance and customs duties. They also determine at which point in the logistics movement of goods title transfer takes place during transit.