Inco 2000

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Guide to INCOTERMS 2000
NOE: For !NCOTERNS 2010, please click here.
Select from the following list to navigate through the Guide to !NCOTERNS 2000.
Select a categor below:
While the terms of sale in international business often sound similar to those commonly used in domestic contracts, they often have different meanings.
Confusion over these terms can result in a lost sale or a financial loss on a sale. Thus, it is essential that you understand what terms you are agreeing to before
you finalize a contract.
Incoterms 2000
By the 1920s, international traders had developed a set of trade terms to describe their rights and obligations with regard to the sale and transport of goods.
These trade terms consisted of short abbreviations for lengthy contract provisions. Unfortunately, there was no uniform interpretation of these terms in all
countries, and therefore misunderstandings often arose in cross-border transactions.
To improve this aspect of international trade, the !nternational Chamber of Commerce (!CC) in Paris developed !NCOTERNS (!Nternational COmmercial
TERNS), a set of uniform rules for the interpretation of international commercial terms defining the costs, risks, and obligations of buyers and sellers regarding
the delivery of goods sold in international transactions. First published in 1936, these rules have been periodically revised to account for changing modes of
transport and document delivery. The current version is !ncoterms 2000.
Use of Incoterms
!ncoterms are not implied into contracts for the sale of goods. !f you desire to use !ncoterms, you must specifically include them in your contract. Further,
your contract should expressly refer to the rules of interpretation as defined in the latest revision of !ncoterms, for example, !ncoterms 2000, and you should
ensure the proper application of the terms by additional contract provisions. Also, !ncoterms are not "laws." !n case of a dispute, courts and arbitrators will
look at: 1) the sales contract, 2) who has possession of the goods, and 3) what payment, if any, has been made. See !nternational Contracts, also by World
Trade Press.
Illustrated Guide to Incoterms
This guide was designed to give a graphic representation of the buyer's and seller's risks and costs under each !ncoterm. The material on each facing page
gives a summary of seller and buyer responsibilities.
Incoterms Do . . .
!ncoterms 2000 may be included in a sales contract if the parties desire the following:
1. To complete a sale of goods.
2. To indicate each contracting party's costs, risks, and obligations with regard to delivery of the goods as follows:
a. When is the delivery completed?
b. How does a party ensure that the other party has met that standard of performance?
c. Which party must comply with requisite licenses and government-imposed import and export formalities?
d. What are the mode and terms of carriage?
e. What are the delivery terms and what is required as proof of delivery?
f. When is the risk of loss transferred from the seller to the buyer?
g. How will transport costs be divided between the parties?
h. What notices are the parties required to give to each other regarding the transport and transfer of the goods?
3. To establish basic terms of transport and delivery in a short format.
Incoterms Do Not . . .
!ncoterms 2000 are not sufficient on their own to express the full intent of the parties. They do not:
1. Apply to contracts for services.
2. Define contractual rights and obligations other than for delivery.
3. Specify details of the transfer, transport, and delivery of the goods.
+. Determine how title to the goods will be transferred.
5. Protect a party from hisfher own risk of loss.
6. Define the remedies for breach of contract.
Tip: !ncoterms can be quite useful, but their use has limitations. !f you use them incorrectly, your contract may be ambiguous, if not impossible to perform. !t
is therefore important to understand the scope and purpose of !ncoterms- when and why you might use them-before you rely on them to define such
important terms as mode of delivery, customs clearance, passage of title, and transfer of risk. Back to top
Organiation of Incoterms
!ncoterms are grouped into four categories:
1. The "E" term (EXW)-The only term where the sellerfexporter makes the goods available at his or her own premises to the buyerfimporter.
2. The "F" terms (FCA, FAS and FOB)-Terms where the sellerfexporter is responsible to deliver the goods to a carrier named by the buyer.
3. The "C" terms (CFR, C!F, CPT and C!P)-Terms where the sellerfexporter is responsible for contracting and paying for carriage of the goods, but not
responsible for additional costs or risk of loss or damage to the goods once they have been delivered to the carrier. C terms evidence "shipment" (as
opposed to "arrival") contracts.
+. The "D" terms (DAF, DES, DEQ, DDU and DDP)-Terms where the sellerfexporter is responsible for all costs and risks associated with bringing the goods
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to the named place (usually of destination). D terms evidence "arrival" contracts.
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Mode of transport
Not all !ncoterms are appropriate for all modes of transport. Some terms were designed with waterborne transport (sea, ocean, and inland waterway) in mind
while others were designed to be applicable to all modes. The following table sets out which terms are applicable for each mode of transport.
Helpful Definitions
Pre-carriage-The initial transport of goods from the seller's premises to the main port or place of shipment. Usually by truck, rail or on inland waterway.
Nain carriage-The primary transport of goods, generally for the longest part of the journey and generally from one country to another. Usually by sea vessel or
by airplane, but can be by truck or rail or inland waterway as well.
On-carriage-Transport from the port or place of arrival in the country of destination to the buyer's premises. Usually by truck, rail or inland waterway.
Nultimodal-A single shipment of goods using at least two modes of transport, such as shipping by rail and by sea. Back to top
Notes on Incoterms
1. Underlying Contract-!ncoterms were designed to be used within the context of a written contract for the sale of goods (not services). !ncoterms,
therefore, refer to the contract of sale, rather than the contract of carriage of the goods. Buyers and sellers should specify that their contract be
governed by !ncoterms 2000.
2. EXW and FCA-!f you buy on Ex Works (EXW) or Free Carrier (FCA) terms you will need to arrange for the contract of carriage. Also, since the shipper
will not receive a bill of lading, using a letter of credit requiring a bill of lading will not be possible.
3. ED!: Electronic Data !nterchange-!t is increasingly common for sellers to prepare and transmit documents electronically. !ncoterms provide for ED! so
long as buyers and sellers agree on their use in the sales contract.
+. !nsurable !nterest-Note that in most cases neither the buyer or the seller is obligated to provide insurance. !n fact, only two !ncoterms mention
insurance: C!P and C!F. The seller and buyer, however, may have insurable interest in the goods, and prudence may dictate purchase of insurance
coverage.
5. Customs of the Port or Trade-!ncoterms are an attempt to standardize trade terms for all nations and all trades. However, different ports and different
trades have their own customs and practices. !t is best if such practices are specified in the sales contract.
6. Named Port or Place-An integral component of each !ncoterm is the inclusion of a "named port" or "named place" after the !ncoterm. For example,
EXW (Ex Works) by itself is incomplete. The !ncoterm must be followed by a specific named port or named place (depending upon the !ncoterm).
With EXW it is a "named place." The complete term might be "EXW Seller's Factory Petaluma, California USA."
7. Precise Point of Delivery-!n addition to a specific "named port" or "named place," it may be necessary to name a precise point of delivery. For example,
the original terms of sale may state "CFR Port of Rotterdam." The Port of Rotterdam, however, is huge and the buyer may find that a particular point
within the port is best and should so state in the sales contract and in the trade term. This may be an important issue in situations where the buyer is
responsible for unloading, storage and other charges once the goods have been made available at the named place. !n some cases it may not be
possible for the buyer to name the precise point of delivery at the time of contract. However, if the buyer does not do so in a timely manner, it may
give the seller the option to make delivery within a range of places that is within the terms of the contract, but inconvenient for the buyer.
8. Exportf!mport Customs Clearance-!t is usually desirable that export customs formalities be handled by the seller and import customs formalities be
handled by the buyer. However, some trade terms (such as EXW) require that the buyer handle export formalities and others require that the seller
handle import formalities. !n each case the buyer and seller will have to assume risk from export and import restrictions and prohibitions. !n some cases
foreign exporters may not be able to obtain import licenses in the country of import. This should be researched before accepting final terms.
9. variants of !ncoterms (Added Wording)-!ncoterms give no guidance regarding the addition of words to individual terms. !n practice the seller and buyer
may agree to such wording. For example, if the seller agrees to DDP terms, agreeing to pay for customs formalities and import duties, but not for vAT
(value Added Taxes) the term "DDP vAT Unpaid" may be used. Adding wording to an !ncoterm, however, may present a risk, especially when the
wording contradicts the fundamental meaning of the !ncoterm itself. Use additional wording only if you are certain that it is consistent with the
meaning of the !ncoterm used.
10. Packing-!t is the responsibility of the seller to provide packaging unless the goods shipped are customarily shipped in bulk (commodities such as oil or
grain). !n most situations it is best if the buyer and seller agree in the sales contract on the type and extent of packing required. However, it may not
be possible to know beforehand the type or duration of transport. As a result, it is the responsibility of the seller to provide for safe and appropriate
packaging, but only to the extent that the buyer has made the circumstances of the transport known to the seller beforehand. !f the seller is
responsible for packing goods in an ocean or air freight container it is also his or her responsibility to pack the container properly to withstand shipment.
11. !nspection-These are several issues related to inspections: a) the seller is responsible for costs of inspection to make certain the quantity and quality of
the shipment is in conformity with the sales contract, b) pre-shipment inspections as required by the export authority are the responsibility of the party
responsible for export formalities, c) import inspections as required by the import authority are the responsibility of the party responsible for import
formalities, and d) third-party inspections for independent verification of quality and quantity (if required) are generally the responsibility of the buyer.
The buyer may require such an inspection and inspection document as a condition of payment.
12. Passing of Risks and Costs-The general rule is that risks and costs pass from the seller to the buyer once the seller has delivered the goods to the port
or place named in the trade term.
13. Definition of "Carrier"-A carrier is a firm that transports goods or passengers for hire, rather than simply arranging for such transport. !n the FCA term,
however, the carrier can be any person who by contract "undertakes to perform or procure" such services. With the FCA term, the buyer nominates
the "carrier" and the seller need only accept the nomination for the term to work. To do so, define (name) the carrier in the sales contract.
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EXW
E Works (. . . named place)
EXW, E Works (...named place)
!n Ex Works, the sellerfexporterfmanufacturer merely makes the goods available to the buyer at the seller's "named place" of business. This trade term places
the greatest responsibility on the buyer and minimum obligations on the seller.
The seller does not clear the goods for export and does not load the goods onto a truck or other transport vehicle at the named place of departure.
The parties to the transaction, however, may stipulate that the seller be responsible for the costs and risks of loading the goods onto a transport vehicle.
Such a stipulation is a variant and must be made within the contract of sale. A better solution in this situation is to use the FCA (Free Carrier) term:. For
example: FCA Supplier's Facility Hong Kong.
!f the buyer cannot handle export formalities the Ex Works term should not be used. !n such a case Free Carrier (FCA) is recommended.
The Ex Works term is often used when making an initial quotation for the sale of goods. !t represents the cost of the goods without any other costs
included.
Normal payment terms for Ex Works transactions are generally cash in advance and open account.
Eamples
EXW Ex Works ABC Factory Paris, France
EXW Ex Works XYZ Printing Plant Singapore
Incoterm Categor
EXW is the only "E" !ncoterm. The "E" !ncoterm is where the sellerfexporter makes the goods available to the buyerfimporter at the sellerfexporter's
premisesffactoryf warehouse (the "named place").
Modes of Transport Covered
All modes of transport including multimodal.
Seller's Responsibilities (summar)
1. Goods-Provide the goods, commercial invoice or electronic message, and other documentation as required by the sales contract.
2. Licenses and Customs Formalities-Provide the buyer at the buyer's request, risk and cost, every assistance in obtaining any license, authorization or
documentation required for export of the goods.
3. Carriage and !nsurance-The seller has no obligation to provide carriage of goods or insurance.
+. Delivery-Nake the goods available to the buyer, not loaded, at the named place and on the date stipulated in the sales contract.
5. Risk Transfer-Assume all risks to the goods (loss or damage) until they have been made available to the buyer in accordance with # + above.
6. Costs-Pay all costs until the goods have been made available to the buyer in accordance with #+ above.
7. Notice to the Buyer-Provide sufficient notice to the buyer of the location and time of availability of the goods.
8. Proof of Delivery, Transport Documents-The seller has no obligation to provide the buyer with a proof of delivery or a transport document.
9. Checking, Packing, Narking-Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract.
Provide appropriate packing (unless the goods are traditionally delivered unpackaged) as required for the transport of the goods, to the extent that
the buyer has made transport circumstances known to the seller prior to the execution of the sales contract. Provide marking appropriate to the
packaging.
10. Other-Provide the buyer, at the buyer's request, risk and expense, assistance in securing documentation originating in the country of origin or of
export as required for export and import. Provide the buyer at the buyer's request information necessary to obtain insurance.
Buer's Responsibilities (summar)
1. Payment-Pay for the goods as provided in the sales contract.
2. Licenses and Customs Formalities-Obtain at own risk and cost all export and import licenses and authorizations. Carry out all export and import formalities
at own risk and cost.
3. Carriage and !nsurance-The buyer has no obligation to the seller to provide contract of carriage or insurance.
+. Taking Delivery-Take delivery of the goods when they have been made available by the seller in accordance with the terms of the sales contract.
5. Risk Transfer-Assume all risks (loss or damage) from the time the goods have been made available by the seller in accordance with the terms of the
sales contract.
6. Costs-Pay all costs for carriage and insurance from the time the goods have been made available by the seller in accordance with the terms of the sales
contract. Pay all costs resulting from failure to take delivery at the named place and time. Pay all costs relating to export and import including duties,
taxes, customs formalities and other charges including transshipment. Reimburse the seller for costs of providing assistance in obtaining export licenses
and authorizations.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time within a stipulated period, andfor specify a place of taking
delivery, to give the seller sufficient notice.
8. Proof of Delivery-Provide the seller with evidence of having taken delivery.
9. !nspection(s)-Pay for the costs of pre-shipment inspection( s) including inspections required by the country of export.
10. Other-Pay andfor reimburse the seller for all costs associated with securing documentation originating in the country of origin or export as required for
export and import.
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FCA
Free Carrier (. . . named place)
!n Free Carrier, the sellerfexporterfmanufacturer clears the goods for export and delivers them to the carrier specified by the buyer at the named place. !f the
named place is the seller's place of business, the seller is responsible for loading the goods onto the transport vehicle. !f the named place is any other location,
such as the loading dock of the carrier, the seller is not responsible for unloading.
The Free Carrier term may be used for any mode of transport, including multimodal.
The "named place" in Free Carrier and all "F" terms is domestic to the seller.
"Carrier" has a specific and somewhat expanded meaning. A carrier can be a shipping line, an airline, a trucking firm, or a railway. The carrier can also be an
individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight
forwarder, can act as a "carrier" under this term. !n such a case, the buyer names the carrier or the individual who is to receive the goods.
The Free Carrier term is often used when making an initial quotation for the sale of goods.
Usual payment terms for Free Carrier transactions are cash in advance and open account.
Note that a carrier is a firm that itself transports goods or passengers for hire, rather than simply arranging for such transport. !n the FCA term, however, the
carrier can be any person who by contract "undertakes to perform or procure" such services. With the FCA term, the buyer nominates the "carrier" and the
seller need only accept the nomination for the term to work. To do so, define (name) the carrier in the sales contract.
Eamples
FCA Free Carrier ABC Shipping Hamburg Germany FCA Free Carrier XYZ Air Lines SFO (San Francisco !nternational Airport)
FCA Free Carrier AZ Freight Forwarders Tokyo Japan
FCA Free Carrier Supplier's Facility Bogata, Colombia
Incoterm Categor
FCA is an "F" !ncoterm where the sellerfexporter delivers the goods export cleared to a carrier named by the buyer, but does not bear risk or costs once the
goods have been handed over.
2. Licenses and Customs Formalities-Obtain at own risk and cost all required export licenses, documentation and authorizations and carry out all export
formalities and procedures.
3. Carriage and !nsurance-The seller has no obligation to provide carriage of goods or insurance. However, if requested by buyer, the seller may contract
for carriage on standard industry terms at the buyer's risk and cost. !f so, the seller must notify buyer who may chose to decline the contract and
notify the seller.
+. Delivery-Deliver the goods to the named carrier, freight forwarder or person at the named place and at the time stipulated in the sales contract.
Requirements for delivery to the carrier vary depending upon the means of transport and the size of the shipment. !n general, delivery is considered
complete when the seller either loads the goods onto the vehicle provided, or delivers the goods to the carrier's terminal, not unloaded.
5. Risk Transfer-Assume all risks to the goods (loss or damage) until they have been delivered to the carrier at the named place.
6. Costs-Pay all costs until the goods have been delivered to the carrier at the named place as well as all costs relating to export including duties, taxes
and customs formalities.
7. Notices-Provide sufficient notice to the buyer that the goods have been delivered to the carrier.
8. Proof of Delivery, Transport Documents-Provide the buyer with a proof of delivery (to the carrier) or a transport document, or to assist the buyer in
obtaining a transport document.
packaging.
10. Other-Provide the buyer, at the buyer's request, risk and expense, assistance in securing documentation originating in the country of origin or of
export as required for import or transshipment through another country. Provide the buyer at the buyer's request information necessary to obtain
insurance.
2. Licenses and Customs Formalities-Obtain all import licenses, documentation and authorizations and carry out all import formalities.
3. Carriage and !nsurance-Provide for contract of carriage from the named place. No obligation for insurance.
+. Taking Delivery-Take delivery of the goods as provided in the sales contract.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered to the carrier as provided in the sales contract.
6. Costs-Pay all costs for carriage and insurance from the time the goods have been delivered to the carrier as provided in the sales contract. Pay all costs
resulting from failure to take delivery at the named place and time. Pay all costs relating to import formalities including duties, taxes and other charges
including transshipment.
7. Notice to Seller-Give the seller sufficient notice of the name of the carrier, the time or period for delivery and the place of delivery.
8. Proof of Delivery, Transport Document-Accept the seller's proof of delivery or transport document.
9. !nspection(s)-Pay for the costs of pre-shipment inspection except inspections required by the country of export.
10. Other-Pay all costs associated with securing documentation originating in the country of origin or export as required for import. Reimburse seller for
costs in providing documentation or assistance. Give the seller instructions regarding carriage.
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FAS
Free Alongside Ship (. . . named port of shipment)
!n Free Alongside Ship, the sellerfexporterfmanufacturer clears the goods for export and then places them alongside the vessel at the "named port of
shipment." [The seller's clearing the goods for export is new to !ncoterms 2000.|
The parties to the transaction, however, may stipulate in their contract of sale that the buyer, instead of the seller clear the goods for export. The standard
FAS term, however, requires that the seller clear the goods for export.
The Free Alongside Ship term is used only for ocean or inland waterway transport.
The "named place" in Free Alongside Ship and all "F" terms is domestic to the seller.
The Free Alongside Ship term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore.
Usual payment terms for Free Carrier transactions are cash in advance and open account, but letters of credit are also used.
Eamples
FAS Free Alongside Ship Port Elizabeth South Africa
FAS Free Alongside Ship Le Havre France
Incoterm Categor
FAS is an "F" !ncoterm where the sellerfexporter delivers the goods alongside a ship, and does not bear risk or costs once the goods have been handed over.
Used only for ocean or inland waterway transport.
2. Licenses and Customs Formalities-Obtain at own risk and cost any export licenses and authorizations and carry out all export formalities and procedures.
3. Carriage and !nsurance-The seller has no obligation to the buyer to provide carriage of goods or insurance.
+. Delivery-Deliver the goods on the quay alongside the named vessel at the named port of shipment and at the time stipulated in the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been delivered to the port of shipment at the named place and time as
provided in the sales contract.
6. Costs-Pay all costs until the goods have been delivered alongside the named vessel at the port of shipment and all costs related to export formalities.
7. Notice to the Buyer-Provide sufficient notice to the buyer that the goods have been delivered alongside the named vessel at the named port of
shipment.
8. Proof of Delivery, Transport Documents-Provide the buyer with a proof of delivery (to the carrier) or a transport document, or to assist the buyer in
obtaining a transport document.
packaging.
10. Other-Provide the buyer at the buyer's request, risk and expense any and all assistance in securing documentation originating in the country of export
or of origin required for import and transshipment through another country. Provide the buyer at the buyer's request information necessary to obtain
insurance.
2. Licenses and Customs Formalities-Obtain at own risk and cost any import licenses and authorizations and carry out all import formalities.
3. Carriage and !nsurance-Provide for contract of carriage from the named port of shipment. No obligation for insurance.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered alongside the ship at the named port of shipment as
provided in the sales contract.
6. Costs-Pay all costs for carriage and insurance from the time the goods have been delivered alongside the vessel in accordance with the terms of the
sales contract. Pay all costs resulting from failure of the named ship to arrive on time or to be able to take the goods. Pay all costs relating import
formalities including duties, taxes and other charges including transshipment.
7. Notice to Seller-Give sufficient notice to the seller of the name of the vessel, the time or period for delivery and the place of delivery.
10. Other-Pay all costs associated with securing documentation originating in the country of origin or export as required for import formalities. Reimburse
seller for seller's costs in providing such documentation or assistance. Also, to give the seller instructions regarding contract for carriage.
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FOB
Free On Board (. . . named port of shipment)
!n Free On Board, the sellerfexporterfmanufacturer clears the goods for export and is responsible for the costs and risks of delivering the goods past the ship's
rail at the named port of shipment.
The Free On Board term is used only for ocean or inland waterway transport.
The "named place" in Free On Board and all "F" terms is domestic to the seller.
Normal payment terms for FOB transactions include cash in advance, open account, and letters of credit.
The Free On Board term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore where passing the ship's rail is important.
The Free On Board term is very commonly misused in situationas where a shipment is simply handed over to a carrier without being loaded onboard an ocean
or inland waterway vessel. !f the seller and buyer do not intend to have the goods pass the ship's rail, the FCA term should be used instead.
The key document in FOB transactions is the "On Board Bill of Lading."
Sellers and buyers often confuse the Free On Board term with Free Carrier. Free On Board (FOB) does not mean loading the goods onto a truck at the seller's
place of business. Free On Board is used only in reference to delivering the goods past a ship's rail in ocean or inland waterway transport. Free Carrier, on the
other hand, is applicable to all modes of transport.
Eamples
FOB Free on Board "vessel ABC" Buenos Aires Argentina
FOB Free on Board Gdansk Poland
Incoterm Categor
FOB is an "F" !ncoterm where the sellerfexporter is responsible for delivering the goods, export cleared, on board a ship, but does not bear risk or costs
afterwards.
3. Carriage and !nsurance-The seller has no obligation to the buyer to provide carriage of goods or insurance.
+. Delivery-Deliver the goods on board the named vessel at the named port of shipment and at the time stipulated in the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have passed the ship's rail on the named vessel as provided in the sales
contract.
6. Costs-Pay all costs until the goods have passed the ship's rail on the named vessel as well as all costs relating to export including duties, taxes and
customs formalities.
7. Notice to the Buyer-Provide sufficient notice to the buyer that the goods have been delivered on board the named vessel.
8. Proof of Delivery, Transport Documents-Provide the buyer with a proof of delivery or a transport document, or to assist the buyer in obtaining a
transport document.
packaging.
or of origin required for import and transshipment through another country. Provide the buyer at the buyer's request information necessary to obtain
insurance.
2. Licenses and Customs Formalities-Obtain at own risk and cost any import licenses and authorizations and carry out all import formalities.
3. Carriage and !nsurance-Provide for contract of carriage from the named port of shipment. No obligation for insurance.
5. Risk Transfer-Assume all risks of loss or damage from the time the goods have passed the ship's rail at the port of shipment.
6. Costs-Pay all costs for carriage and insurance from the time the goods have passed the ship's rail at the port of shipment in accordance with the terms
of the sales contract. Pay all costs resulting from failure of the named ship to arrive on time or to be able to take the goods. Pay all costs relating to
import formalities including duties, taxes and other charges including transshipment.
7. Notice to Seller-Give sufficient notice to the seller of the name of the vessel, the time or period for delivery and the place of delivery.
10. Other-Pay all costs associated with securing documentation originating in the country of origin or export as required for import. Reimburse seller for
seller's costs in providing such documentation or assistance.
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CFR
Cost and Freight (. . . named port of destination)
!n Cost and Freight, the sellerfexporterfmanufacturer clears the goods for export and is responsible for delivering the goods past the ship's rail at the port of
shipment (not destination).
The seller is also responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass
the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.
The Cost and Freight term is used only for ocean or inland waterway transport.
The "named port of destination" in Cost and Freight and all "C" terms is domestic to the buyer. Normal payment terms for Cost and Freight transactions
include cash in advance, open account, and letters of credit.
The Cost and Freight term is commonly used the sale of a) bulk commodity cargo such as oil, grains, liquid chemicals, and ore, b) oversize and overweight
cargo that will not fit into an ocean freight container, or c) cargo that exceeds the weight limitations of ocean containers. The term is sometimes used for LCL
(less than container load) cargo and for the shipment of goods by rail in boxcars to the ocean carrier.
Eamples
CFR Cost and Freight Port-au-Prince Haiti
CFR Cost and Freight Bombay !ndia
Incoterm Categor
CFR is a "C" !ncoterm where the seller is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or risk of loss
or damage to the goods once they have been delivered past the ship's rail at origin. C terms evidence "shipment" (as opposed to "arrival") contracts.
3. Carriage and !nsurance-Contract for and pay all costs of carriage by sea vessel to the named port of destination. No obligation to provide insurance.
+. Delivery-Deliver the goods on board the named vessel at the named port and on the date or within the time period stipulated in the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have passed over the ship's rail at the port of shipment.
6. Costs-Pay all costs until the goods have been delivered to the named port of shipment and passed over the ship's rail plus costs of loading, carriage to
the port of destination and normal unloading. Also to pay all costs relating to export including duties, taxes and customs formalities.
8. Proof of Delivery, Transport Documents-Provide the buyer with a transport document that will allow the buyer to claim the goods at the destination
and (unless otherwise agreed) allow the buyer to sell the goods while in transit through the transfer of the transport document or by notification to
the sea carrier.
packaging.
or of origin required for import and transshipment (as necessary). Provide the buyer at the buyer's request information necessary to obtain insurance.
2. Licenses and Customs Formalities-Obtain and pay costs of all import licenses and authorizations and carry out all import formalities.
3. Carriage and !nsurance-No obligation to the buyer.
+. Taking Delivery-Accept delivery of the goods at the port of origin as provided in the sales contract.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have passed over the ship's rail at the port of shipment.
6. Costs-Pay all additional costs for the goods once they have passed over the ship's rail at the port of shipment, including unloading, lighterage and
wharfage at the port of destination. Pay all costs relating to import formalities including duties, taxes and other charges including transshipment.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for shipping andfor specify a port of destination, to give the seller
sufficient notice. Any date used with the CFR term should be associated with the date of delivery past the ship's rail at the port of origin.
8. Proof of Delivery, Transport Document-Accept the seller's transport document so long as it is in conformity with the sales contract.
10. Other-Pay all costs of securing documentation from the country of origin or export as required for import. Reimburse seller for costs in providing such
documentation or assistance.
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CIF
Cost, Insurance and Freight (... named port of destination)
!n Cost, !nsurance and Freight, the sellerfexporterfmanufacturer clears the goods for export and is responsible for delivering the goods past the ship's rail at
the port of shipment (not destination).
The seller is responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass the
ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.
The seller is also responsible for procuring and paying for minimum cover marine insurance on behalf of the buyer against the buyer's risk of loss for the
shipment.
The Cost, !nsurance and Freight term is used only for ocean or inland waterway transport.
The "named port of destination" in Cost, !nsurance and Freight and all "C" terms is domestic to the buyer. Normal payment terms for Cost, !nsurance and
Freight transactions include cash in advance, open account, and letters of credit.
The Cost and Freight term is commonly used the sale of bulk commodity cargo such as oil, grains, liquid chemicals, and ore.
Eamples
C!F Cost, !nsurance and Freight Hong Kong
C!F Cost, !nsurance and Freight Port of New York
Incoterm Categor
C!F is a "C" !ncoterm where the seller is responsible for contracting and paying for carriage and minimum cover insurance of the goods, but not responsible for
additional costs or risk of loss or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.
3. Carriage and !nsurance-Contract for and pay costs of carriage by sea or inland waterway and minimum cover insurance for 110 percent of the value of
the contract to the named port of destination. The insurance policy must allow the buyer to make claim directly from the insurer. Deliver the insurance
document to the buyer.
+. Delivery-Deliver the goods past the ship's rail aboard the named vessel at the named port and at the date or within the time period stipulated in the
sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have passed over the ship's rail at the port of shipment.
6. Costs-Pay all costs of carriage and insurance until the goods have been delivered to the named port of shipment and passed over the ship's rail, plus
costs of loading, carriage to the port of destination and normal unloading. Also to pay all costs relating to export including duties, taxes and customs
formalities.
8. Proof of Delivery, Transport Documents-Provide the buyer with a transport document that will allow the buyer to claim the goods at the destination
and (unless otherwise agreed) allow the buyer to sell the goods while in transit through the transfer of the transport document or by notification to
the sea carrier.
packaging.
10. Other-Provide the buyer at the buyer's request, risk and cost any and all assistance in securing documentation originating in the country of export or of
origin required for import and for transshipment.
3. Carriage and !nsurance-No obligation for carriage or insurance.
+. Taking Delivery-Accept delivery of the goods at the port of origin as provided in the sales contract.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have passed over the ship's rail at the port of shipment.
6. Costs-Pay all supplemental costs for the goods once they have passed over the ship's rail at the port of shipment, including unloading, lighterage and
wharfage at the port of destination, unless otherwise specified in the sales contract. Pay all costs relating to import formalities including duties, taxes
and other charges including transshipment.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for shipping andfor specify a port of destination, to give the seller
sufficient notice. Any date used with the C!F term should be associated with the date of delivery past the ship's rail at the port of origin.
10. Other-Pay costs of securing documentation from the country of origin or export as required for import. Reimburse seller such costs. Provide information
necessary to obtain insurance.
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CPT
Carriage Paid To (. . . named place of destination)
!n Carriage Paid To, the sellerfexporterfmanufacturer clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage to the
named place of destination. However, once the seller delivers the goods to the first carrier (if more than one carrier is used), the buyer becomes responsible
for all additional costs.
!n !ncoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of
carriage such as in small package courier delivery.
The seller is not responsible for procuring and paying for insurance cover.
The CPT term is valid for any form of transport including multimodal.
The "named place of destination" in CPT and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.
The Carriage Paid To term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small parcels, and in "ro-
ro" (roll-on, roll-off) shipments of motor vehicles.
A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of
transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term. !f subsequent carriers are used for the
carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
Eamples
CPT Customer's Site Nadrid Spain
CPT Frankfurt Airport Frankfurt Germany
Incoterm Categor
CPT is a "C" !ncoterm where the seller is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or risk of loss
or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.
3. Carriage and !nsurance-Contract for and pay all costs of carriage to the agreed point at the named place of destination. No obligation to provide
insurance.
+. Delivery-Deliver the goods to the carrier (or first of multiple carriers) for carriage to the named place of destination within the time period stipulated in
the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been delivered to the carrier or first of multiple carriers.
6. Costs-Pay all costs until the goods have been delivered to the carrier plus costs of loading, carriage to the place of destination and normal unloading.
Also to pay all costs related to export including duties, taxes and customs formalities. Pay the costs of unloading, customs clearance, duties, and other
costs if such costs are included in the cost of carriage.
7. Notice to the Buyer-Provide sufficient notice to the buyer that the goods have been delivered to the carrier.
8. Proof of Delivery, Transport Documents-Provide the buyer with a transport document.
packaging.
or of origin required for import and for transshipment (as necessary). Provide the buyer at the buyer's request information necessary to obtain
insurance.
3. Carriage and !nsurance-No obligation for either carriage or insurance.
+. Taking Delivery-Take delivery of the goods from the carrier at the place of origin as provided in the sales contract.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered to the carrier by the seller.
6. Costs-Pay all additional costs (not covered in the seller's contract of carriage in Seller's #6) for the goods once they have been delivered to the carrier,
including unloading, lighterage and wharfage at the place of destination. Pay all costs relating to import formalities including duties, taxes and other
charges including transshipment.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for shipping andfor specify a place of destination, to give the
seller sufficient notice. Any date used with the CPT term should be associated with the date of delivery past the ship's rail at the port of origin.
9. !nspection(s)-Pay for the costs of pre-shipment inspection( s) except inspections required by the country of export.
10. Other-Pay all costs associated with securing documentation from the country of origin or export as required for import. Reimburse seller for costs in
providing such documentation or assistance.
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CIP
Carriage and Insurance Paid To (. . . named place of destination)
!n Carriage and !nsurance Paid To, the sellerfexporter clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage and
insurance to the named place of destination. However, once the goods are delivered to the carrier, the buyer is responsible for all additional costs.
!n !ncoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of
carriage such as in small package courier delivery.
The seller is responsible for procuring and paying for minimum insurance cover.
The C!P term is valid for any form of transport including multimodal.
The "named place of destination" in C!P and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.
The Carriage and !nsurance Paid To term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small
parcels, and in "ro-ro" (roll-on, roll-off) shipments of motor vehicles. A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm
who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act
as a "carrier" under this term. !f subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered
to the first carrier.
Eamples
C!P XYZ Public Warehouse Jakarta !ndonesia
C!P LeHarve France
Incoterm Categor
C!P is a "C" !ncoterm where the seller is responsible for contracting and paying for carriage and insurance of the goods, but not responsible for additional costs
or risk of loss or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.
3. Carriage and !nsurance-Contract for and pay all costs of carriage and minimum insurance to the named place of destination. The insurance policy or
document must allow the buyer to make a claim directly from the insurer. Deliver the insurance document to the buyer.
+. Delivery-Deliver the goods to the carrier (or first of multiple carriers) for carriage to the named place of destination within the time period stipulated in
the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been delivered to the carrier or first of multiple carriers.
6. Costs-Pay all costs until the goods have been delivered to the carrier, plus costs of loading, carriage, insurance to the named place of destination plus
normal unloading. Also to pay all costs relating to export including duties, taxes and customs formalities. Pay the costs of unloading, customs clearance,
duties, and other costs if such costs are included in the contract of carriage.
7. Notice to the Buyer-Provide sufficient notice to the buyer that the goods have been delivered to the carrier.
8. Proof of Delivery, Transport Documents-Provide the buyer with a transport document.
packaging.
or of origin required for import and for transshipment (as necessary). Provide the buyer with information necessary to procure additional insurance.
+. Taking Delivery-Take delivery of the goods from the carrier at the place of origin as provided in the sales contract.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered to the carrier by the seller.
6. Costs-Pay all additional costs (not covered in the seller's contract of carriage in Seller's #6) for the goods once they have been delivered to the carrier,
including unloading, lighterage and wharfage at the place of destination. Pay all costs relating to import formalities including duties, taxes and other
charges including transshipment.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for shipping andfor specify a place of destination, to give the
seller sufficient notice. Any date used with the C!P term should be associated with the date of delivery past the ship's rail at the port of origin.
10. Other-Pay all costs associated with securing documentation from the country of origin or export required for import. Reimburse seller for costs in
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DAF
Delivered At Frontier (. . . named place)
!n Delivered At Frontier, the sellerfexporterfmanufacturer clears the goods for export and is responsible for making them available to the buyer at the named
point and place at the frontier, not unloaded, and not cleared for import. Naming the precise place and time of availability at the frontier is very important as
the buyer must make arrangements to unload and secure the goods in a timely manner. For example the Port of Rotterdam is so large that the buyer will wish
to specify a precise place within the port. Frontier can mean any frontier including the frontier of export.
The DAF term is valid for any mode of shipment, so long as the final shipment to the named place at the frontier is by land.
The seller is not responsible for procuring and paying for insurance cover.
Eample 1
DAF Laredo, Texas. Seller is in Dallas, Texas, buyer is in Nexico City, Nexico. The shipment travels by truck from Dallas to the frontier at Laredo, Texas USA
where the buyer takes possession and trucks the goods to Nexico City.
Eample 2
DAF Basel Switzerland. Seller is in Dallas, Texas, buyer is in Bern Switzerland. The shipment travels by truck from Dallas to Port Arthur, by ship to Le Havre,
France and then by rail to the frontier in Basel where the buyer takes possession and transports the goods to the city of Bern.
Incoterm Categor
DAF is a "D" !ncoterm where the seller is responsible for all costs associated with delivering the goods to the named point and place of destination. "D" terms
evidence "arrival" (as opposed to "shipment") contracts.
Used for all modes of transport so long as the final shipment to the named place at the frontier is by land.
2. Licenses and Customs Formalities-a) Obtain at own risk and cost any export licenses and authorizations required to enable the buyer to deal with
export formalities at the named frontier. And, if transshipped, b) Carry out all export formalities and procedures required to bring the goods to the
named frontier.
3. Carriage and !nsurance-Contract for and pay all costs of carriage and transshipment (if necessary) to the named place. No obligation to provide
insurance.
+. Delivery-Nake the goods available to the buyer unloaded at the frontier at the named point and place and on the date or period specified in the sales
contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named point place and time at
the frontier.
6. Costs-Pay all costs until the goods have been delivered at the frontier, including carriage, and all prior to delivery export formalities.
7. Notice to the Buyer-Provide sufficient notice of dispatch and projected arrival that the buyer can take appropriate action to arrange pick-up of the
goods.
8. Proof of Delivery, Transport Documents-Provide the buyer with documentary evidence of delivery at the frontier. At the buyer's request, risk and cost,
provide a through document of transport to the named place of destination.
packaging.
or of origin required for import. Provide the buyer with information necessary to obtain insurance.
+. Taking Delivery-Take delivery of the goods once they are made available at the frontier.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered at the named point, place and time at the frontier.
6. Costs-Pay all costs for the goods once they have been delivered to the frontier including unloading. Pay all costs relating to import formalities including
duties, taxes and formalities. Pay for transport from the frontier to the final destination.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for andfor a point of taking delivery in the named port of
destination, to give the seller sufficient notice.
providing such documentation or assistance. Provide the seller with any authorizations, permits, documents or other information required for obtaining
a through transport document.
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DES
Delivered E Ship (. . . named port of destination)
!n Delivered Ex Ship, the sellerfexporterfmanufacturer clears the goods for export and is responsible for making them available to the buyer on board the ship
at the named port of destination, not cleared for import. The seller is thus responsible for all costs of getting the goods to the named port of destination prior
to unloading. The DES term is used only for shipments of goods by ocean or inland waterway or by multimodal transport where the final delivery is made on a
vessel at the named port of destination.
All forms of payment are used in DES transactions.
Eamples
DES Delivered Ex Ship Port of Calcutta
DES Delivered Ex Ship Port of New York
Incoterm Categor
DES is a "D" !ncoterm where the seller is responsible for all costs associated with delivering the goods to the named port of destination. "D" terms evidence
"arrival" (as opposed to "shipment") contracts.
2. Licenses and Customs Formalities-Obtain at own risk and cost any export licenses and authorizations and carry out all export formalities and procedures,
including those associated with transshipment to the named port of destination.
3. Carriage and !nsurance-Contract for and pay all costs of carriage and transshipment (if necessary) to the named place and port of destination. No
obligation to provide insurance.
+. Delivery-Nake the goods available to the buyer uncleared for import on board the vessel at the named port on the date or within the time period
specified in the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named place and port.
6. Costs-Pay all costs until the goods have been delivered, including all export formalities, carriage and transshipment (if necessary) to the named port.
goods.
8. Proof of Delivery, Transport Documents-Provide the buyer with the delivery order andfor a transport document enabling the buyer to take delivery of
the goods at the port of destination.
packaging.
+. Taking Delivery-Take delivery of the goods once they are made available at the port.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been made available at the port.
6. Costs-Pay all costs for the goods once they have been made available at the port including unloading. Pay all costs relating to import formalities
including duties, taxes and other charges.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for andfor a point of taking delivery in the named port of
destination, to give the seller sufficient notice.
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DEQ
Delivered E Qua (. . . named port of destination)
!n Delivered Ex Quay, the sellerfexporterfmanufacturer clears the goods for export and is responsible for making them available to the buyer on the quay
(wharf) at the named port of destination, not cleared for import. The buyer, therefore, assumes all responsibilities for import clearance, duties, and other
costs upon import as well as transport to the final destination. This is new for !ncoterms 2000.
The DEQ term is used only for shipments of goods arriving at the port of destination by ocean or by inland waterway. All forms of payment are used in DEQ
transactions.
Eamples
DEQ Delivered Ex Quay Alexandria Egypt
DEQ Delivered Ex Quay Stockholm Sweden
Incoterm Categor
DEQ is a "D" !ncoterm where the seller is responsible for all costs associated with delivering the goods to the quay (wharf) at the named port of destination.
"D" terms evidence "arrival" (as opposed to "shipment") contracts.
3. Carriage and !nsurance-Contract for and pay all costs of carriage and transshipment (if necessary) to the named place, port and quay (wharf) of
destination. No obligation to provide insurance.
+. Delivery-Nake the goods available to the buyer at the named port and quay on the date or within the period specified in the sales contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named port and quay (wharf).
6. Costs-Pay all costs until the goods have been offloaded at the port of destination, including country of origin export formalities, transshipment to the
named port of destination. Note: This is a reversal from earlier !ncoterms where the seller was responsible for import formalities.
goods.
8. Transport Documents-Provide the buyer with the delivery order andfor a transport document enabling the buyer to take possession at the port of
destination.
packaging.
10. Other-Give the buyer, at the buyer's request, risk and cost, assistance in obtaining documentation required for import clearance of the goods. Provide
the buyer with information necessary to obtain insurance.
+. Taking Delivery-Take delivery of the goods once they are made available at the quay.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been made available at the quay wharf).
6. Costs-Pay all costs for the goods once they have been made available at the quay (wharf), including import formalities,, duties, taxes, and
transshipment.
7. Notice to Seller-!f, according to the sales contract, the buyer is able to specify a time for andfor a place of delivery, to give the seller sufficient notice.
8. Proof of Delivery, Transport Document-Accept the seller's delivery order or transport document so long as it is in conformity with the sales contract.
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DDU
Delivered Dut Unpaid (. . . named place of destination)
!n Delivered Duty Unpaid, the sellerfexporterfmanufacturer clears the goods for export and is responsible for making them available to the buyer at the named
place of destination, not cleared for import and not unloaded from the arriving means of transport.
The seller, therefore, assumes all responsibilities for delivering the goods to the named place of destination, but the buyer assumes all responsibility for import
clearance, duties, administrative costs, and any other costs upon import as well as transport to the final destination.
The DDU term can be used for any mode of transport. However, if the seller and buyer desire that delivery should take place on board a sea vessel in the port
of destination, the DES term is recommended. !f the buyer and seller desire that delivery should take place in the port of destination, on a quay (wharf), the
DEQ term is recommended.
All forms of payment are used in DDU transactions.
Eamples
DDU Delivered Duty Unpaid New York New York USA
DDU Delivered Duty Unpaid Hamburg Germany
Incoterm Categor
DDU is a "D" !ncoterm where the seller is responsible for all costs associated with delivering the goods to the named place of destination. "D" terms evidence
3. Carriage and !nsurance-Contract for and pay all costs of carriage and transshipment (if necessary) to the named place of destination. No obligation to
provide insurance.
+. Delivery-Nake the goods available to the buyer at the named place of destination, not unloaded, on the date or within the period specified in the sales
contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named destination.
6. Costs-Pay all costs until the goods have been delivered to the named place of destination, not unloaded, including carriage, all export formalities,
export duties and taxes, and transshipment (if necessary) to the named place of destination.
goods.
8. Proof of Delivery, Transport Documents-Provide the buyer with the delivery order andfor a transport document enabling the buyer to take delivery at
the named place of destination.
packaging.
2. Licenses and Customs Formalities-Obtain and pay costs of all import licenses, documentation and authorizations and carry out all import formalities.
3. Carriage and !nsurance-No obligation to for either carriage or insurance.
+. Taking Delivery-Take delivery of the goods once they are made available at the named place of destination.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been made available at the named place of destination.
6. Costs-Pay all costs for the goods once they have been made available at the named place of destination. Pay all costs relating to import formalities
including duties, taxes and other charges.
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DDP
Delivered Dut Paid (. . . named place of destination)
!n Delivered Duty Paid, the sellerfexporterfmanufacturer clears the goods for export and is responsible for making them available to the buyer at the named
place of destination, cleared for import, but not unloaded from the transport vehicle. (Note that solid line arrows above stop at buyer's loading platform.)
The seller, therefore, assumes all responsibilities for delivering the goods to the named place of destination, including all responsibility for import clearance,
duties, and other costs payable upon import.
!f the parties desire that the seller NOT be obligated to pay for vAT (value-added tax), explicit wording to that effect should be added to the contract of
sale.
The DDP term can be used for any mode of transport. All forms of payment are used in DDP transactions.
The DDP term is typically used when the named place of destination is the buyer's place of business, or alternatively, the place of business of the buyer's
client.
Eamples
DDP Delivered Duty Paid Chicago USA
DDP Delivered Duty Paid vAT Unpaid Paris France
Incoterm Categor
DDP is a "D" !ncoterm where the seller is responsible for all costs associated with delivering the goods to the named place of destination. "D" terms evidence
2. Licenses and Customs Formalities-Obtain at own risk and cost any export and import licenses and authorizations and carry out all export and import
formalities and procedures, including those associated with transshipment to the named place of destination.
3. Carriage and !nsurance-Contract for and pay all costs of carriage and transshipment (if necessary) to the named place of destination. No obligation to
provide insurance.
+. Delivery-Nake the goods available to the buyer not unloaded at the named place of destination on the date or within the period specified in the sales
contract.
5. Risk Transfer-Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named place of destination.
6. Costs-Pay all costs until the goods have been delivered to the named place of destination, including carriage, all export and import formalities and
transshipment (if necessary) to the named destination.
7. Notice to the Buyer-Provide sufficient notice of dispatch and projected arrival that the buyer can take appropriate action to arrange unloading of the
goods at the named place of destination.
8. Proof of Delivery, Transport Documents-Provide the buyer with the delivery order andfor a transport document enabling the buyer to take delivery at
the named place of destination.
packaging.
10. Other-Pay all costs associated with securing documentation necessary to make the goods available to the buyer at the named place of destination.
Provide the buyer with information necessary to obtain insurance.
2. Licenses and Customs Formalities-Provide the seller at the seller's request, risk and cost any and all assistance in securing licenses, documentation and
authorizations necessary to import the goods.
+. Taking Delivery-Take delivery of the goods once they are made available at the named place of destination.
5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been made available at the named place of destination.
6. Costs-Pay all costs for the goods once they have been made available at the named place of destination.
10. Other-Provide the seller, at the seller's request, risk and cost any and all assistance in securing import and other documentation necessary for the seller
to make the goods available to buyer at the named place of destination.

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