Jan 28, 2020 - 08:31 PM
Thanks for your question and our apologies for the delayed response. Let me answer this question for you.
To facilitate exporters and importers across the world the International Chamber of Commerce has developed some standard International commercial terms called INCO terms. These terms establish buyer and seller responsibilities at each stage of the shipment to avoid misunderstanding.
The INCO term also becomes a part of the agreement between the buyer and the seller and is mentioned clearly on all documents involved in the transaction. Please find the list of updated list of INCO terms mentioned below:
FOB: Free On Board This term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier's shipping dock
FCA: Free Carrier This term means that the seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.
FAS: Free Alongside Ship This term means that the seller must arrange for the goods purchased to be delivered next to a particular vessel in a particular port in order to be ready for transfer to a waiting ship. FCA can be used for any mode of transport. While FAS or FOB are used only for sea/ waterways.
CIF: Cost Insurance and Freight It is an expense paid by a seller to cover the costs, insurance, and freight against the possibility of loss or damage to a buyer's order while it is in transit to an export port named in the sales contract.
CFR: Cost and Freight It means that the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier
CPT: Carriage Paid To The seller pays for the carriage of the goods up to the named place of destination.
CIP: Carriage and Insurance Paid To means that the seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. DAT: Delivered at terminal Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination.
DAP: Delivered at place It means that the seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location.
DDP: Delivered duty paid means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport and ready for unloading at the named place of delivery.
Hope you find this information useful.