Incoterms

Incoterms

1. Trade Terms are key elements of international contracts of sale

   • Define the role between seller and uyer at an international transaction, a contract is made and it is stablish:
     • Duties of the buyer and the seller
     • Point where the costs and risks pass on from the seller to the buyer
     • Who takes care of the insurances, licences, permissions and all other formalities
     • Who arranges the transport until which point and who is responsible for this

2. How to use them

   • Specify the notion in the sales contract
   • Other precautions to take into account
     • knowledge of the meaning of each Incoterm and its acronym
     • Use the Incoterms® variants with precision, to avoid the confusion that could arise from their misinterpretation
   • Pinpoint the place or port accurately
   • Choosing the Right Incoterms® Ruler

3. Direct delivery on departure or sale on arrival

   • A sale on arrival means that the merchandise travels at the expense and risk of the seller to the agreed point / port
     • until the end of maritime transport and landing (DAP)
     • to destination point (DPU, DDP)
   • A direct delivery on departure means that the merchandise travels at the expense and risk of the buyer
     • from the moment it was delivered to the carrier to be dispatched (FCA, FAS, FOB, CFR, CIF, CPT and CIP)
     • from its availability at the seller's premises (EXW)

4. English/Spanish

   • Ocean freight usage only/Aplicables al transporte marítimo y al transporte fluvial
     • FAS - Free Alongside Ship/Franco al costado del buque
     • FOB – Free On Board/Franco a bordo
     • CFR – Cost And Freight/Coste y Flete
     • CIF – Cost Insurance And Freight/Coste, Seguro y Flete
   • For all modes of Transport/Aplicables al transporte marítimo y al transporte fluvial
     • EXW – Ex Works/En fábrica
     • FCA – Free Carrier/Franco transportista
     • CPT – Carriage Paid To/Transporte pagado hasta
     • CIP – Carriage And Insurance Paid To/Transporte y seguro pagados hasta
     • DPU – Delivered At Named Place, Unloaded/Descargado en el lugar de destino acordado
     • DAP – Delivered At Place/Entregado en punto de destino
     • DDP – Delivered Duty Paid/Entregado con derechos pagados