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    INCOTERMS

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    Natalia Espinoza
    The document discusses Incoterms, which are standard international commercial terms used in contracts for international trade. [1] The Incoterms are established by the International Chamber of Commerce and provide common definitions for commercial terms used in sales contracts. [2] There are 11 Incoterms divided into four groups - E, F, C, and D - based on delivery locations and responsibilities. The groups further include subcategories that specify obligations for transport by sea or other means. [3]

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    INCOTERMS

    Uploaded by

    Natalia Espinoza
    3 views19 pages
    The document discusses Incoterms, which are standard international commercial terms used in contracts for international trade. [1] The Incoterms are established by the International Chamber of Commerce and provide common definitions for commercial terms used in sales contracts. [2] There are 11 Incoterms divided into four groups - E, F, C, and D - based on delivery locations and responsibilities. The groups further include subcategories that specify obligations for transport by sea or other means. [3]

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    The document discusses Incoterms, which are standard international commercial terms used in contracts for international trade. [1] The Incoterms are established by the International Chamber of Commerce and provide common definitions for commercial terms used in sales contracts. [2] There are 11 Incoterms divided into four groups - E, F, C, and D - based on delivery locations and responsibilities. The groups further include subcategories that specify obligations for transport by sea or other means. [3]

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views19 pages

    INCOTERMS

    Uploaded by

    Natalia Espinoza
    The document discusses Incoterms, which are standard international commercial terms used in contracts for international trade. [1] The Incoterms are established by the International Chamber of Commerce and provide common definitions for commercial terms used in sales contracts. [2] There are 11 Incoterms divided into four groups - E, F, C, and D - based on delivery locations and responsibilities. The groups further include subcategories that specify obligations for transport by sea or other means. [3]

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    © All Rights Reserved
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    Download as pdf or txt
    of 19

    DIEGO INZUNZA, DERECK MÉNDEZ, DANIEL ARENAS, SAUL ACEVEDO, NATALIA

    ESPINOZA Y LUIS ROJAS

    INCOTERMS
    2023
    What are the
    INCOTERMS?

    Incoterms or International Commercial


    Terms are the common language of
    international trade. They are standard
    terms which are commonly incorporated
    into contracts for the trade of goods
    around the world.
    Who establish them?

    The Incoterms are a set of 11 individual


    rules establish by the International
    Chamber of Commerce (ICC) this
    organization is the voice of world business
    championing the global economy as a
    force for economic growth.
    Why are they established?

    According to the ICC, Incoterms® rules


    provide internationally accepted
    definitions and rules of interpretation
    for most common commercial terms
    used in contracts for the sale of goods.
    How are INCOTERMS
    classified?

    Currently, there are 11 different


    incoterms. Each type is divided into
    four groups: E, F, C and D. These
    categories are determined by the
    delivery location and who is
    responsible for covering the cost of
    each part of the journey. The groups
    are then split into sub-categories
    which refer to various scenarios.
    How are INCOTERMS
    classified?

    For any means of transport: For sea transportation:

    • Ex-Works (EXW). • Free Alongside Ship (FAS).


    • Free Carrier (FCA). • Free On Board (FOB).
    • Carriage Paid To (CPT). • Cost and Freight (CFR).
    • Carriage and Insurance Paid To (CIP). • Cost, Insurance, and Freight (CIF).
    • Delivered At Place (DAP).
    • Delivered at Place Unloaded (DPU).
    • Delivered Duty Paid (DDP).
    EXW

    Ex-Works.
    The seller delivers the goods at its
    premises or another designated
    location.
    The buyer assumes the risks and
    costs related to loading,
    transportation and dispatch of
    products.
    FCA

    Free Carrier.
    The seller’s obligations are to deliver
    the cargo to an agreed-upon port,
    known as the “Named Place.”
    The seller is responsible for
    exporting the shipment, and all
    steps before that.
    The buyer assumes the
    responsibility for the cargo once
    they are ready to be loaded onto the
    carrier.
    FAS

    Free Alongside Ship.


    The seller delivers the goods alongside the ship at a named port of
    shipment, and the buyer assumes responsibility for all transportation,
    export, and import formalities from that point.
    FOB

    Free on Board.
    The seller delivers the goods on board the ship at a named port of shipment
    and clears the goods for export.
    The buyer assumes responsibility for all transportation, import formalities,
    and associated costs from that point.
    CFR

    Cost and Freight.


    The seller ensures goods are
    delivered on board the vessel or
    arranges for their delivery.
    The seller is responsible for arranging
    and covering the costs and freight to
    transport the goods to the designated
    destination port.
    CIF

    Cost, Insurance, and Freight.


    The seller ensures goods are
    delivered on board the vessel. Risk of
    loss or damage passes when the
    goods are on the ship.
    The seller covers costs, freight, and
    minimum insurance to the destination
    port.
    CPT

    Carriage Paid To.


    The seller delivers goods to the
    carrier or a nominated person at an
    agreed place.
    The seller is responsible for arranging
    and covering the costs of carriage to
    bring the goods to the designated
    destination.
    CIP

    Carriage and Insurance Paid To.


    The seller is responsible for arranging
    and paying for carriage to the
    designated destination, similar to CPT.
    The seller provides insurance
    coverage against the buyer's risk of
    loss or damage during transit.
    DPU

    Delivered at Place Unloaded.


    The seller continues responsibility
    and risk into the import country, up
    until the shipment is unloaded.
    It favors the seller (exports) and the
    buyer (imports) when each one is
    strong.
    DAP

    Delivered At Place.
    The seller takes on the
    responsibility of coordinating the
    entire shipment, from packing and
    transportation to the destination.
    Import customs clearance, duties,
    and taxes remain the buyer’s
    responsibility in this arrangement.
    It clearly outlines buyer and seller
    responsibilities.
    DDP

    Delivered Duty Paid.


    The seller arranges the entire
    shipment, including import customs.
    It favors the buyer, since most of the
    paperwork and responsibilities are on
    the seller.
    THANK YOU
    BIBLIOGRAPHY
    https://www.freightos.com/freight-resources/dpu-delivered-place-unloaded-shipping-incoterm/
    https://gomotive.com/blog/what-does-delivered-at-place-
    mean/#:~:text=A%20big%20advantage%20of%20DAP,liability%20agreement%20for%20the%20
    buyer.
    https://www.maersk.com/transportation-services/incoterms
    https://www.trade.gov/know-your-incoterms
    https://www.freightos.com/freight-resources/ddp-shipping-incoterm/
    https://guidedimports.com/blog/what-does-fca-mean-incoterms/
    https://www.customssupport.com/insights/incoterms-explained-ex-works-
    exw#:~:text=Import-,Incoterms,buyer%20has%20to%20arrange%20everything.

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