Useful Info
It is essential that you are aware of your terms of trade prior to shipment.
INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods.
- Buyer assumes almost all costs and risk throughout the shipping process
- Seller's only job is making sure the buyer can access the goods
- Once the buyer has access, it's all down to them (including loading the goods)
Risk transfers from seller to buyer:
At the seller's warehouse, offices or wherever the goods are being collected from.
- It's the seller's job to get the goods to the buyer's carrier at an agreed location
- Seller is also required to clear goods for export
Risk transfers from seller to buyer:
When the buyer's carrier receives the goods.
- Same seller responsibilities as CPT with one difference: the seller also pays for the carriage and insurance to the named destination.
- Seller is obliged to purchase the maximum level of insurance cover under Clause A (Institute Cargo Clauses), for the buyer's risk.
Risk transfers from seller to buyer:
When the buyer's carrier receives the goods.
- Same seller responsibilities as FCA with one difference: the seller covers delivery costs
- As with FCA, it's the seller's responsibility to clear goods for export
Risk transfers from seller to buyer:
When the buyer's carrier receives the goods.
- Seller covers the costs and risk of transporting goods to an agreed address
- Goods are classed as delivered when they're at the address and ready to be unloaded
- Export and import responsibilities are the same as DAT
Risk transfers from seller to buyer:
When goods are ready for unloading at the agreed address
- Seller takes almost all responsibility throughout the shipping process
- They cover all costs and risk of transporting goods to the agreed address
- Seller also makes sure goods are ready for unloading, fulfils export and import responsibilities and pays any duties
Risk transfers from seller to buyer:
When goods are ready for unloading at the agreed address.
- Seller is responsible for the costs and risk of delivering the goods to an agreed place of unloading.
- The place of unloading could be any place, whether covered or not.
- Seller organises customs clearance and unloads the goods at the place of unloading.
- Buyer sorts import clearance and any related duties.
Risk transfers from seller to buyer:
At the place of unloading.
- Seller assumes all costs and risk until goods have been delivered next to the ship
- Buyer then takes over risk and takes care of export and import clearance
Risk transfers from seller to buyer:
When goods have been delivered next to the ship.
- Seller assumes all costs and risk until goods have been delivered on board the ship
- They also sort out export clearance
- Buyer assumes all responsibilities as soon as the goods are on board
Risk transfers from seller to buyer:
When goods have been delivered onto the
- Seller has the same responsibilities as FOB but must also pay the cost of bringing the goods to the port
- As with FIB, the buyer assumes all responsibilities as soon as the goods are on board
Risk transfers from seller to buyer:
When goods are on the ship.
- Seller has the same obligations as CFR but must also cover insurance costs
- Seller is obliged to purchase the minimum insurance cover which is 110% of the invoice value, in the currency of that invoice and contract.
- If the buyer requires more comprehensive insurance, the seller must arrange the additional cover at the buyer's cost.
Risk transfers from seller to buyer:
When the goods are on the ship.
