Notesale: Turn your study into money

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INCOTERMS (International Commercial Terms)
To understand what incoterms are, we must begin by first defining what it is
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Incoterms are universally accepted trade rules
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The International Chamber of Commers, commonly known as the ICC is the body that
publishes these set of rules
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Any
purchase, based on its incoterms, clearly outlines the party that legally incurs the costs and
risks of the transaction
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If the seller does so,
the buyer is liable to risks of the transaction
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b) FCA- Free Carrier
The seller takes responsibility to load the goods to the carrier as well as the customs
clearance
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c) DDP- Delivery Duty Paid
In this agreement, the seller assumes all risks and costs until the goods are delivered
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d) FAS- Free Alongside Ship
The seller is responsible until the goods are delivered alongside the vessel and is only
responsible for the export license
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The buyer pays for the cost of goods delivered and takes care of other expenses
and risks after delivery
e) FOB-Free On Board
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The buyer is responsible for the risks of loss or damage for the goods on board a
vessel
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They also
procure the goods delivered
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g) CIF- Cost, Insurance and Freight
The seller delivers and takes full responsibility for the costs and freights necessary to
transport the goods to the named port of destination
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The seller only provides a minimum insurance
cover for the shipped goods
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h) DAP- Delivered At Place
The seller and the buyer agree on a destination for the goods and the seller is responsible for
the risks involved in bringing the goods to the buyer´s chosen destination
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The insurance is only a minimum cover
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As the name suggests, the seller is responsible for bringing the goods to the buyers chosen
destination and takes responsibility for the risks of unloading them to the buyer

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