Incoterms 2020

They are the basic trade terms in the world that are used in contracts for the sale of goods at the international level and are an integral part of it, and through which the responsibilities of each of the exporter and importer are defined, tasks are clarified, costs are distributed, risk and insurance, and these conditions are linked with the United Nations Charter on Contracts for Global Sales of Goods.

 

 

EX Works (EXW)

(This term is used in all modes of transport)

Cost: The exporter is responsible for having the goods ready for loading at his place of business (factory, warehouse) and this term represents the minimum obligation of the seller, while the importer bears all the costs involved in taking the goods from the exporter’s premises to the final destination.

Risks:The importer bears the risk of loss or damage to the goods that occurs from the point of receipt from the source until it reaches its final destinationة.

 

 

 

Free On Board – named port of shipment (FOB)

(This term is used in sea and inland transportation only)

Cost: The exporter bears all the costs of transporting and clearing the goods for export and loading them on board the ship, while the importer bears the rest of the costs of loading and unloading the goods at the port and the costs of customs clearance of import and transportation to its final destination.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until they are loaded onto the ship, and the importer bears the risk of loss or damage to the goods that occur after loading on the ship until it reaches its final destination.

 

 

Cost, Insurance & Freight (CIF)

(This term is used for sea or canal transport)

Cost: The exporter bears all the costs of transporting and clearing the goods for export, loading them on board the ship and shipping them to the importing country, while the importer bears the costs of unloading the goods at the port and customs clearance of the import and transporting them to their final destination.

Risks:The exporter bears the risk of loss or damage to the goods that occur from the point of packing until they are loaded onto the ship, and the importer bears the risk of loss or damage to the goods during shipment from the country of export until they reach their final destination.

Insurance: The exporter is responsible for obtaining insurance against the risk of loss or damage to the goods during transit from the country of export and for their unloading in the country of import.

 

 

Free Carrier (FCA)

(This term is used in all modes of transport)

Cost:The exporter shall bear the costs of transporting and clearing the goods for export at the place specified by the importer
If the importer does not specify a point of receipt, the exporter chooses the place where the carrier must take the goods in his custody, while the importer bears the cost of loading the goods on the means of transport and the cost of shipping and clearing them for import and transporting them to the final destinationة.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until customs clearance for export, and the importer bears the risk of loss or damage to the goods that occur after customs clearance of export until it reaches its final destination.

 

 

Carriage Paid To (CPT)

(This term is used in all modes of transport)

Cost:The exporter bears all the costs of transportation and customs clearance of the goods for export, their shipment and unloading in the importing country, while the importer bears the costs of customs clearance of import and the costs of transporting the goods to their final destination..

Risks:The exporter bears the risk of loss or damage to the goods that occur from the point of packing until their customs clearance for export, and the importer bears the risk of loss or damage to the goods while they are loaded onto the means of transport and shipped to the country of import until unloading at the final destination.>

 

 

Carriage & Insurance Paid To (CIP)

(This term is used in all modes of transport)

Cost: The exporter bears all the costs of transportation and customs clearance for export and shipping and unloading the goods in the importing country, while the importer bears the costs of import customs clearance and the costs of transporting the goods to their final destination.

Risks:The exporter bears the risk of loss or damage to the goods that occur from the point of packing until their customs clearance for export, and the importer bears the risk of loss or damage to the goods from the point of their loading in the means of transport until they reach their final destination.

Insurance: It is the exporter’s responsibility to obtain insurance against the buyer’s risk of loss or damage to the goods in transit from the country of export to the country of import.

 

 

Delivered At Place (DAP)

(This term is used in all modes of transport)

Cost:The exporter bears all the costs of transportation and customs clearance for export and shipping and unloading of goods in the importing country, while the importer bears the costs of customs clearance of import, so that the costs are transferred back to the source to transport the goods to the destination, while the costs of unloading in the specified place are borne by the importer.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until their arrival in the importer’s country and their transfer after the import customs clearance, and the importer bears the risk of loss or damage to the goods during the customs clearance of the import and its unloading at the final destination.

 

 

Delivered At Place Unloaded (DPU)

(This term is used in all modes of transport)

Cost: The exporter bears all the costs of transportation and customs clearance of the export until its unloading in the importing country, while the importer bears the costs of customs clearance of the import only.

Risks:The exporter bears the risk of loss or damage to the goods that occur from the point of packing until their unloading in the importer’s country and their transportation after the customs clearance of the import and unloading them at the final destination. The importer bears the risk of loss or damage to the goods during the customs clearance of the import only.

 

 

Delivered Duty Paid (DDP)

(This term is used in all modes of transport)

Cost:The exporter bears all the costs involved in taking the goods from its headquarters until its arrival at the desired destination, while the importer bears the costs of unloading the goods after their arrival there.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until their arrival at the final destination, and the importer bears the risk of loss or damage to the goods while they are unloaded at the final destination only.

 

 

Free Alongside Ship – named port of shipment (FAS)

(This term is used for maritime transport but not for multimodal transport)

Cost:The exporter bears all the costs of transporting the goods and their customs clearance for export, while the importer bears the rest of the costs of loading the goods on board the ship, loading and unloading them, and the costs of customs clearance of import and transportation to their final destination.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until customs clearance for export, and the importer bears the risk of loss or damage to the goods that occur after customs clearance of export until the goods reach their final destination.>

 

 

Cost & Freight (CFR)

(This term is used for sea or canal transport)

Cost: The exporter bears the costs of transporting and clearing the goods for export, loading them on board the ship and shipping them to the importing country, while the importer bears the costs of unloading the goods from the ship, clearing them for importation and transporting them to their final destination.

Risks: The exporter bears the risk of loss or damage to the goods that occur from the point of packing until they are loaded onto the ship, and the importer bears the risk of loss or damage to the goods during external shipment from the country of export until they reach their final destination.