Incoterms: Amadou Caroline Kwafo Françoise Luzolanu Michael

Incoterms
Amadou Caroline
Kwafo Françoise
Luzolanu Michael
Introduction
 Universally recognised set of definitions of
international trade terms
 Recognised by courts and other authorities
 Define the trade contract responsibilities and

liabilities between buyer and seller
(who pays for what, who has risk for the
conditions of the product at each step of the
process)
Introduction
E: Departure
EXW- Ex Works
F: Main carriage unpaid
 Devised an published by FCA- Free Carrier
the ICC FAS- Free Alongside Ship
FOB- Free On Board
 ICC introduced Incoterms
C: Main carriage paid
in 1936 CFR- Cost and Freight
 Incoterms 2000 CIF- Cost, Insurance and Freight
CPT- Carriage Paid To
 4 groups E, F, C and D CIP- Carriage and Insurance Paid To
and in all 13 main terms D: Arrival
 It is invaluable and a DAF- Delivered At Frontier
DES- Delivered Ex Ship
cost-saving tool DEQ- Delivered Ex Quay
DDU- Delivered Duty Unpaid
DDP- Delivered Duty Paid
EXW - Ex Works
Goods available only at seller’s premises.
Buyer: loads the goods on truck or container at the
seller’s premises, and takes into account the
subsequent costs and risks.
FCA - Free Carrier
Delivery at the specified point of departure: the seller’s
premises or a named cargo terminal / railroad station
Buyer: main carriage/freight, cargo insurance and other
costs and risks
FAS - Free Alongside Ship
Seller: places the goods alongside the ship at the
named port, loaded at his expense.
Buyer: pays loading fee, main carriage/freight, cargo
insurance and other costs risks.
FOB - Free On Board
Delivery of goods on board the vessel at the port of
origin is at the seller’s expense.
Buyer is responsible for loading fee, main
carriage/freight, cargo insurance and other costs
risks.
CFR - Cost and Freight
Seller: pays the costs and freight to bring the
goods to the port of destination.
Risk: transferred once the goods have crossed the
ship’s rail.
CIF - Cost Insurance and Freight
Used exactly the same way as CFR except that

Seller: must in addition procure and pay for insurance
for the cargo insurance and delivery of goods to the
port of destination
Buyer: responsible for the import customs clearance &
other costs and risks
CPT - Carriage Paid To
Seller delivers the goods at the named place of
destination at his expense.
Buyer assumes the cargo insurance, import customs
clearance, payment of customs duties and taxes,
and other costs and risks.
Risk transferred at the delivery of goods
CIP - Carriage & Insurance Paid To
Seller delivers the goods on the ship. On board, the

risk is transferred to the buyer.
Buyer is accountable for the import customs
clearance, payment of customs duties and taxes,
and other costs and risks until goods reach their
final destination.
DAF - Delivered At Frontier
Delivery of goods is done at the specified point at the
frontier at the seller's expense.
Buyer is responsible for the import customs
clearance, payment of customs duties and taxes.
The transfer of risk is made at the frontier
DES - Delivered Ex Ship
Seller assumes expenses linked to the delivery of
goods. At the arrival of the ship, the risk is transferred
to the buyer.
Buyer is accountable for the unloading fee, import
customs clearance, payment of customs duties and
taxes, cargo insurance, and other costs
DEQ - Delivered Ex Quay
Delivery of goods is done to the quay of the port at the
seller's expense. He is also responsible for the
import customs clearance and payment of customs
duties and taxes at the buyer's end.
Buyer assumes the cargo insurance and other costs
and risks
DDU - Delivered Duty Unpaid
Delivery of goods and the cargo insurance to the final
destination, which is often the project site or buyer's
premises, is done at the seller's expense.
Buyer is responsible for the import customs clearance and
payment of customs duties and taxes
DDP - Delivered Duty Paid
Seller is responsible for most of the expenses, which

include the cargo insurance, import customs
clearance, and payment of customs duties and
taxes at the buyer's end, and the delivery of goods
to the final point at destination, which is often the
project site or the buyer's premises.
It is a “door to door” delivery.
Risk is transferred when the goods are delivered
Conclusion
 Incoterms cannot be applied by themselves to

a variety of situations, of medium of transports,
technologies....
 They must be supplemented by additional
details adapted to these particular case.
 Define the geographical points where the
transfers of risks and expenses will take place.

Incoterms: Amadou Caroline Kwafo Françoise Luzolanu Michael

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Incoterms: Amadou Caroline Kwafo Françoise Luzolanu Michael

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Incoterms

 Define the trade contract responsibilities and

Used exactly the same way as CFR except that

Seller delivers the goods on the ship. On board, the

Seller is responsible for most of the expenses, which

 Incoterms cannot be applied by themselves to

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