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INCO Terms are internationally accepted commercial
terms defining the respective roles of the buyer and seller in the
arrangement of transportation and other responsibilities, and clarify when
the ownership of the merchandise takes place. They are used in conjunction
with a sales agreement or other method of transacting the sale. Below is
an example of how INCO Terms work in action. The definitions provided here
are the most common uses of each term, but are not the only way these
terms are used. Pay close attention to the location listed for each term,
as this indicates where payment details change from Shipper to
Consignee.
- (factory, mill, warehouse: your door) Title and risk pass to
buyer including payment of all transportation and insurance cost from the
seller's door. Used for any mode of
transportation.
- (pick a place after your origin to start) Title and risk pass
to buyer including transportation and insurance cost when the seller
delivers goods cleared for export to the carrier. Seller is obligated to
load the goods on the Buyer's collecting vehicle; it is the Buyer's
obligation to receive the Seller's arriving vehicle
unloaded.
- (port,
after all origin port charges) Title and risk pass to buyer including
payment of all transportation and insurance cost once delivered alongside
ship by the seller. Used for sea or inland waterway transportation. The
export clearance obligation rests with the seller.
- (port-same as FAS) Risk pass to
buyer including payment of all transportation and insurance cost once
delivered on board the ship by the seller. Used for sea or inland waterway
transportation.
- (destination port-paid to arrival at destination port) Title,
risk and insurance cost pass to buyer when delivered on board the ship by
seller who pays the transportation cost to the destination port. Used for
sea or inland waterway transportation.
- (destination
port-same as CFR, but includes insurance) Title and risk pass to buyer
when delivered on board the ship by seller who pays transportation and
insurance cost to destination port. Used for sea or inland waterway
transportation.
- (place at destination-includes all destination
port charges) Title, risk and insurance cost pass to buyer when delivered
to carrier or seller who pays transportation and insurance cost to
destination. Used for any mode of transportation.
- (place at destination-same as CPT, but includes
insurance) Title and risk pass to buyer when delivered to carrier by
seller who pays transportation and insurance cost to destination. Used for
any mode of transportation.
-
(border of country-same as paid by seller to border-all other charges to
buyer) Title, risk and responsibility for import clearance pass to buyer
when delivered to named border point by seller. Used for any mode of
transportation. (border of country-same as paid by seller to border-all
other charges to buyer) Title, risk and responsibility for import
clearance pass to buyer when delivered to named border point by seller.
Used for any mode of transportation.
- (on board ship to
destination port) Title, risk, responsibility for vessel discharge and
import clearance pass to buyer when seller delivers goods on board the
ship to destination port. Used for sea or inland waterway transportation.
- (destination port-includes duties
and taxes, but not destination charges or delivery) Title and risk pass to
buyer when delivered on board the ship at the destination point by the
seller who delivers goods on dock at destination point cleared for import.
Used for sea or inland waterway transportation.
- (consignee door-excluding duties
and taxes) Title, risk, and responsibility for vessel discharge and import
clearance pass to buyer when seller delivers goods on board the ship to
destination port. Used for sea or inland waterway
transportation.
- (consignee door-includes all charges origin to
destination) Title and risk pass to buyer when seller delivers goods to
named destination point cleared for import. Used for any mode of
transportation.
Note: EXW, CPT, CIP,
DAF, DDU and DDP are commonly used for any mode of transportation. FAS,
FOB, CFR, CIF, DES, and DEQ are used for sea and inland
waterway. |