1) Negotiated outside of the INCOTERMS. Buyer/ Seller may have additional “insurable interest” and prudence may indicate purchase of additional coverage.
2) Item depends on named place.
3) Seller assists in obtaining consular work. International Chamber of Commerce (ICC) arbitration is available if noted as part of the contract between the seller and buyer. Note: This chart is for informational purposes only. Star Concord recommends consulting a trade attorney for all international transactions.
International trade terms to describe the rights and liabilities with regard to the sale and transport of goods.
Seller delivers (without loading) the goods at disposal of buyer at seller’s premises. Long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller. On these routed transactions, the buyer has limited obligation to provide export information to the seller.
Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.
Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.
Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller must pay cost of carriage to the named place of destination.
Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller pays carriage and insurance to the named place of destination.
Seller bears cost, risk and responsibility for goods until made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.
Seller bears cost, risk and responsibility for cleared goods at named place of destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible for import clearance, duties and taxes so buyer is not “importer of record”.
Risk passes to buyer, including payment of all transportation and insurance costs, once delivered alongside the ship (realistically at named port terminal) by the seller. The export clearance obligation rests with the seller.
Risk passes to buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller. A step
Seller delivers goods and risk passes to buyer when on board the vessel. Seller arranges and pays cost and freight to the named
Risk passes to buyer when delivered on board the ship. Seller arranges and pays cost, freight and insurance to destination port. Adds insurance costs to CFR.
The possibility that an event may occur which could cause loss of or damage to the goods is a “risk”. Buyers and/or sellers can protect themselves against risks by transport insurance.
Covers all costs except costs of documents. Sales and purchase contracts should clearly state which costs on transfer of the goods are for account of buyer and/or seller.
Transport insurance is the responsibility of the seller.
Determine ownership or transfer title to the goods, nor evoke payment terms. Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies. Protect parties from their own risk or loss, nor cover the goods before or after delivery. Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract.
