International Commercial Terms used in Export Import – Incoterms
Incoterms or International commercial terms. International Commercial Terms are a series of international trade terms that are used worldwide to divide he transaction costs and responsibilities between the seller and the buyer.
Incoterms directly deal with the questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import responsibilities, who pays for what and who has the risk for the condition of the products at different locations within the transport process.
Incoterms and world customs Incoterms deal with the various trade transactions all over the world and clearly distinguish between the respective responsibilities of the seller and the buyers.
Departure of goods by international transport with the risks and dangers to the Seller (Exporter) and Buyers (Importers)
The 13 International Incoterms are:
- EXW (Ex Works)
- FCA (Free Carrier)
- FAS (Free Alongside ship)
- FOB (Free On Board)
- CFR (Cost And Freight)
- CIF (Cost, Insurance And Freight)
- CPT (Carriage Paid To)
- CIP (Carriage And Insurance Paid To)
- DAF (Delivered At Frontier)
- DES (Delivered Ex-Ship)
- DEQ (Delivered Ex-Quay)
- DDU (Delivered Duty Unpaid)
- DDP (Delivered Duty Paid)