INCO Terms

Group D: Arrival

In this group of Incoterms, the seller is responsible for delivering the goods to a specific destination point, often at the buyer's premises.

DAP (Delivered At Place (named place))

Seller's Obligations: The seller delivers the goods to the named place of destination. They pay for transportation costs, including export and import clearance.

Buyer's Obligations: The buyer assumes responsibility for unloading the goods at the named place of destination.

Suitable For: All modes of transport (air, rail, road, sea, and multimodal).

DES (Delivered Ex Ship (named port))

Seller's Obligations: The seller delivers the goods to the named port of destination. They pay for transportation costs, including export and import clearance, and insurance coverage.

Buyer's Obligations: The buyer assumes responsibility for unloading the goods from the ship and transporting them to their final destination.

Suitable For: Maritime transport only.

DEQ (Delivered Ex Quay (named port))

Seller's Obligations: The seller delivers the goods to the named port of destination and unloads them from the ship. They pay for transportation costs, including export and import clearance, and insurance coverage.

Buyer's Obligations: The buyer assumes responsibility for transporting the goods from the quay to their final destination.

Suitable For: Maritime transport only.

DDU (Delivered Duty Unpaid (named place of destination))

Seller's Obligations: The seller delivers the goods to the named place of destination. They pay for transportation costs, including export clearance.

Buyer's Obligations: The buyer assumes responsibility for import clearance, customs duties, and any additional transportation costs to their final destination.

Suitable For: All modes of transport (air, rail, road, sea, and multimodal).

DDP (Delivered Duty Paid (named place of destination))

Seller's Obligations: The seller delivers the goods to the named place of destination. They pay for all costs, including transportation, export and import clearance, customs duties, and any additional transportation costs to the buyer's premises.

Buyer's Obligations: The buyer only needs to accept the goods at their final destination.

Suitable For: All modes of transport (air, rail, road, sea, and multimodal).

It is important to note that the buyer's responsibilities under these Incoterms can be significant, especially for international shipments. It's crucial for both buyers and sellers to have a clear understanding of their obligations to avoid potential disputes and additional costs.

Group E: Departure - EXW (Ex Works)

What it means:

The seller makes the goods available at their premises.

The buyer is responsible for all charges, including:

1. Transportation (from the seller's premises to the destination)
2. Loading and unloading of the goods
3. Export clearance
4. Import clearance
5. Insurance
6. Taxes and duties

Any other costs associated with the movement of the goods from the seller's premises to the buyer's designated destination.

Why it's important:

1. EXW is the least favorable Incoterm for the seller.
2. It places minimal obligations on the seller, who simply needs to make the goods available at their premises.
3. This term is often used when the buyer has their own transportation and logistics arrangements in place.

When to use EXW:

1. When the buyer is responsible for all export and import formalities.
2. When the buyer has experience with international shipping and logistics.
3. When the seller has limited resources or expertise in international shipping.

Important considerations:

1. It's essential for both parties to have a clear understanding of their roles and responsibilities under EXW.
2. Any transportation damages will be the buyer's responsibility.
3. The seller should provide accurate information about the goods, such as weight, dimensions, and packing specifications, to facilitate the buyer's shipping arrangements.

Remember:

The use of EXW should be carefully considered, especially for sellers who may be unfamiliar with international shipping or logistics. It's crucial to have a thorough understanding of the risks and responsibilities involved in this term before entering into any trade transaction.

Let me know if you'd like to explore other Incoterms or have any more questions!

In this group of Incoterms, the seller is responsible for delivering the goods to a specific point, but the buyer assumes responsibility for arranging and paying for the main carriage of the goods to the final destination.

FCA (Free Carrier (named place))

Seller's Obligations: The seller delivers the goods, cleared for export, to the first carrier named by the buyer at the specified place.

Buyer's Obligations: The buyer takes over responsibility for all costs and risks associated with transporting the goods from the named place to their final destination. This includes export clearance, import clearance, and any transportation charges.

Suitable For: All modes of transport (air, rail, road, sea, and multimodal).

FAS (Free Alongside Ship (named loading port))

Seller's Obligations: The seller delivers the goods alongside the ship at the named port. They must also clear the goods for export.

Buyer's Obligations: The buyer is responsible for loading the goods onto the ship and for all costs and risks associated with transporting the goods from the named port to their final destination.

Suitable For: Maritime transport only.

FOB (Free On Board (named loading port))

Seller's Obligations: The seller loads the goods onto the ship nominated by the buyer at the named port. They must also clear the goods for export.

Buyer's Obligations: The buyer assumes responsibility for all costs and risks associated with transporting the goods from the ship's rail to their final destination.

Suitable For: Maritime transport only.

It's important to note that the buyer's responsibilities under these Incoterms can be significant, especially for international shipments. It's crucial for both buyers and sellers to have a clear understanding of their obligations to avoid potential disputes and additional costs.