INCOTERMS 2020

FCA | Free Carrier

“Free Carrier” means that the seller delivers the goods to the buyer in one or other of two ways.

Delivery and risk 

• First:
  • When the named place is the sellers premises the goods are delivered.
  • When they are loaded on the means of transport arranged by the buyer.
• Second:
  • When having been loaded on the sellers means of transport.
  • They reach the named other place.
  • Are ready for unloading from that seller’s means of transport.
  • At the disposal of the carrier of another person nominated by the buyer.

• Whichever of the two is chosen as the place of delivery, that place identifies where risk transfers to the buyer and the time from which cost are for the buyers account.
  
  

Place or point of delivery

• A sale under FCA can be concluded naming only the place of delivery, either at the seller’s premises or elsewhere.
• The parties are well-advised to also specify as clearly as possible the named place of delivery.
  
  

Export/import Clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit or any import formalities.

CPT | Carriage Paid To

“Carriage Paid To” means that the seller delivers the goods, and transfers the risk, to the buyer.

Delivery and risk 

• By handing them over to the carrier.
• Contracted by the seller.
• By procuring the goods so delivered.
• Once the goods have been delivered to the buyer, the seller does not guarantee the goods will reach the place of destination in sound condition.
  
  

Place or point of delivery and destination

• Two locations are important:
  • The place or point at which the goods are delivered (transfer of risk).
  • The place or point agreed as the destination of the goods.
    
    

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit or any import formalities.

CIP | Carriage and Insurance Paid To

“Carriage and Insurance Paid to” means that the seller delivers the goods, and transfers the risk, to the buyer.

Delivery and risk  

• By handing them over to the carrier.
• Contracted by the seller.
• By procuring the goods so delivered.
• The seller may do so by giving the carrier physical possession of the goods.
• Once the goods have been delivered to the buyer, the seller does not guarantee the goods will reach the place of destination in sound condition.
  
  

Place or point of delivery and destination

• Two locations are important:
  • The place or point at which the goods are delivered.
  • The place or point agreed as the destination of goods.
    
    

Insurance

• The seller must contract for insurance cover against buyer’s risk of loss or damage to the goods from the point of delivery to the point if destination.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit or any import formalities.

DAP | Delivered at Place

“Delivered at Place” means that the seller delivers the goods, and transfers risk, to the buyer.

Delivery and risk

• When the goods are placed at the disposal of the buyer.
• On arriving means of transport ready for unloading.
• At the named place or destination.
• At the agreed point within that place.
  
  

Place or point of delivery and destination

• The parties are well advised to specify the destination place or point as clearly as possible.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit or any import formalities.

DPU | Delivered at Place Unloaded

“Delivered at Place unloaded” means that the seller delivers the goods, and transfer risk, to the buyer.

Delivery and risk 

• When the goods,
• Once unloaded from the arriving means of transport.
• Are placed at the disposal of the buyer.
• At the named place of destination according to Incoterms.
• At the agreed point within that place.
  
  

Place or point of delivery and destination

• The parties are well advised to specify the destination place or point as clearly as possible.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit or any import formalities.

DDP | Delivered Duty Paid

“Delivered Duty Paid” means that the seller delivers goods to the buyer.

Delivery and risk

• When the goods are placed at the disposal of the buyer,
• Cleared for import,
• On the arriving means of transport,
• Ready for unloading.
• At the named place of destination.
  
  

Place or point of delivery and destination

• The parties are well advised to specify the destination place or point as clearly as possible.
  
  

Export/import clearance

• The seller is required to clear the for goods export.
• The seller is required to clear the goods for import.

FAS | Free Alongside Ship

“Free Alongside Ship” means that the seller delivers the goods to the buyer.

Delivery and risk

• When the goods are placed alongside the ship.
• Nominated by the buyer.
• At the named port of shipment.
• When the seller procures goods already delivered.
  
  

Place or point of delivery and destination

• The parties are well advised to specify the loading point at the named port of shipment as clearly possible.
• The seller is required either to deliver the goods alongside the ship or to procure goods already so delivered for shipment.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit, or any import formalities.

FOB | Free On Board

“Free on Board” means that the seller delivers the goods to the buyer.

Delivery and risk 

• On board the vessel.
• Nominated by the buyer.
• At the named port of shipment.
• Or procures the goods already so delivered according to Incoterms.
  
  

Place or point of delivery and destination

• The seller is required either to deliver the goods on board the vessel or to procure goods already so delivered for shipment.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit, or any import formalities.

CFR | Cost and Freight 

“Cost and Freight” means that the seller delivers the goods to the buyer.

Delivery and risk

• On board vessel.
• Procures the goods already so delivered.
  
  

Place or point of delivery and destination

• Two ports are important:
  • The port where the goods are delivered on board the vessel.
  • The port agreed as the destination of the goods.
• The contract must specify a destination port, but it might not specify the port of shipment which is where the risk transfers.
• The parties are well advised to specify the loading point at the named port of shipment as clearly possible.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit, or any import formalities.

CIF | Cost Insurance and Freight

“Cost Insurance and Freight” means that the seller delivers the goods to the buyer.

Delivery and risk

• On board the vessel.
• Or procures the goods already so delivered.

Place or point of delivery and destination

• Two ports are important:
  • The port where the goods are delivered on board the vessel.
  • The port agreed as the destination of the goods.
• The contract must specify a destination port, but it might not specify the port of shipment which is where the risk transfers.
• The parties are well advised to specify the loading point at the named port of shipment as clearly possible.
  
  

Insurance

• The seller must also contract for insurance cover against the buyer’s risk of loss or damage to the goods from the port of shipment the at least the port of destination.
  
  

Export/import clearance

• The seller is required to clear the export for goods.
• The seller has no obligation to clear the goods for import, transit, or any import formalities.