INCOTERMS are a set of three-letter terms that regulate the responsibilities of companies in contracts for the sale of goods.
They describe the following aspects:
Incoterm 2010 vs. 2020
INCOTERMS: According to the responsibility of the seller
INCOTERMS: According to the mode of transport
EXW – In Factory (… named place)
“In Factory” means that the seller makes the delivery when he makes the merchandise available to the buyer at the seller’s premises or at another designated place (workshop, factory, warehouse etc. ).
The seller does not have to load the merchandise in any collection vehicle, nor does it have to dispatch it for export, if the destination of the merchandise so requires. </ p >
“EXW represents the minimum obligation for the selling company”.
FCA- Free Carrier (… named place)
“Free Carrier” means that the selling company delivers the merchandise to the carrier or to the person designated by the buyer at the seller’s company premises or in another designated place (it is necessary to specify the place).
The risk is passed from the seller to the buyer at the point of delivery.
Requires the seller to dispatch the merchandise for export.
FAS – Free alongside the ship
“Free on the Ship’s Side” It means that the selling company makes the delivery when the merchandise is placed next to the ship designated by the buying company (for example: at the dock) at the designated port of shipment.
The risk of loss or damage is transmitted when the merchandise is alongside the ship, and the purchasing company bears all costs from that moment onwards.
Export customs clearance will be paid by the seller.
FOB – Free on Board
“Free on Board” means that the selling company delivers the goods on board the ship designated by the buyer at the designated port of shipment.
The risk or loss is transmitted when the merchandise is on the ship, and the buying company bears all the costs from that moment on.
Export customs clearance will be paid by the seller.
CFR – Cost and Freight
“Cost and Freight” It means that the seller delivers the merchandise on board the ship and must contract and assume the cost of transportation to the designated destination port.
The risk of loss or damage to the merchandise is transmitted
