INCO term for import and export of goods

1. INCO TERMS

2. INCO terms
• 4 General Groups of Terms
“E” term: seller’s obligation and control of
shipment is at its minimum
“F” terms: require the buyer to arrange for
main carriage,seller has nominal responsibility
“C” terms: require the seller to arrange for
main carriage and book the goods
“D” terms: seller’s obligation and control is at
its maximum

3. Sellers obligation:
• Transport or carriage
• Load unload
• Insurance

4. Responsibility or contract of
carriage at three stages
• Pre-Carriage: the transportation segment
from the seller’s location to the point where
the cargo would leave from the seller’s side.
• Main Carriage: the transportation segment
from the seller’s side to the buyer’s side.
• On-Carriage: the transportation segment from
the point of arrival on the buyer’s side to the
designated ultimate receiver.

5. Different incoterms
• Ex Works (EXW)
Ex means from. Works means factory, mill or
warehouse, which is the seller's premises.
EXW applies to goods available only at the
seller's premises.
Buyer is responsible for loading the goods on truck
or container at the seller's premises, and for the
subsequent costs and risks.

6. FOB vs FCA(free carrier)
• Free On Board
The delivery of goods on board the vessel at
the named port of origin (loading), at seller's
expense. Buyer is responsible for the main
carriage/freight, cargo insurance and other
costs and risks.
• Who chooses the carrier?

7. • FOB - transferral of risk: When the goods have
been loaded on board the vessel at the named
port.
FCA (Free carrier)– The seller will deliver the
goods to the named carrier at a named place
When the seller has delivered the goods to
the carrier nominated by the buyer at the
named place.

8. • C incoterms. Terms from this group have one
thing in common, they are all terms used
when the seller can arrange to pay all the fees
up to delivery at a foreign port.
• But responsible for only delivery at the named
destination

9. • CPT-Carriage Paid to "Carriage paid to..."
means that the seller pays the freight for the
carriage of the goods to the named
destination. Seller will clear the export
• Buyer assumes the cargo insurance, import
customs clearance, payment of customs
duties and taxes, and other costs and risks.
• It can be multimodal

10. • Cost, Insurance and Freight(CIF)
The cargo insurance and delivery of goods to
the named port of destination (discharge) at
the seller's expense. Buyer is responsible for
the import customs clearance and other costs
and risks from the port.

11. • Carriage and Insurance Paid To (CIP)
The delivery of goods and the cargo insurance
to the named place of destination (discharge)
at seller's expense. Buyer assumes the import
customs clearance, payment of customs
duties and taxes, and other costs and risks.
• It is multimodal

12. DAT /DAP/DDP
• “Delivered at Terminal” DAT means that the
seller delivers when the goods, having been
unloaded from the arriving means of transport,
are placed at the buyer’s disposal at a named
terminal at the named port .It is different from
CIF
• The import clearance is the buyers responsibility

13. DAP - Delivered at Place
• Definition: This term means that the seller pays all
the costs of transportation (export fees, carriage,
insurance, and destination port charges) up to and
including the delivery of the goods to the final
destination(not only port or terminal)
• The buyer is responsible to pay only the import
duty /taxes/customs costs. The buyer also is
responsible to unload the goods from the vehicle at
the final destination

14. • DDP-Delivered Duty Paid "Delivered duty
paid" means that the seller fulfils his
obligation to deliver when the goods have
been made available at the named place in
the country of importation.
• The seller has to bear the risks and costs,
including duties, taxes including export and
import , and other charges of delivering the
goods thereto, cleared for importation