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ICOTERMS 2000
When negotiating an international sales contract, both the seller and the buyer need to fully understand terms of sale. To avoid any confusion, a standard chart of terms and responsiblities was created. INCOTERMS 2000 has been adopted by most countries to help define and clarify the exact responsibilities and risks of each party whilst the goods are in transit. There are currently 13 INCOTERMS. The 13 INCOTERMS
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| Term | Definition | Applies To |
| EXW | Ex-Works - named place where shipment is available to the buyer, not loaded. | The seller will not contract for any transportation. |
| FCA** | Free Carrier - unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. | Any mode of transport |
| FAS | Free Alongside Ship - named ocean port of shipment. | Ocean shipments that are NOT containerized. |
| FOB | Free On Board vessel - named ocean port of shipment. | Ocean shipments only where it's important the goods pass the ship's rail. |
** NOTE: There are actually two FCA terms: FCA Seller's Premises where the seller is responsible only for loading the goods and not responsible for inland freight; and FCA Named Place (International Carrier) where the seller is responsible for inland freight.
Responsibilites
| EXW | FCA | FAS | FOB | |
|
SERVICES |
Ex Works | Free Carrier | Free Alongside Ship | Free Onboard Vessel |
| Warehouse Storage | Seller | Seller | Seller | Seller |
| Warehouse Labor | Seller | Seller | Seller | Seller |
| Export Packing | Seller | Seller | Seller | Seller |
| Loading Charges | Buyer | Seller | Seller | Seller |
| Inland Freight | Buyer | Buyer/ Seller* |
Seller | Seller |
| Terminal Charges | Buyer | Buyer | Seller | Seller |
| Forwarder's Fees | Buyer | Buyer | Buyer | Buyer |
| Loading On Vessel | Buyer | Buyer | Buyer | Seller |
| Ocean/Air Freight | Buyer | Buyer | Buyer | Buyer |
| Charges On Arrival At Destination | Buyer | Buyer | Buyer | Buyer |
| Duty, Taxes & Customs Clearance | Buyer | Buyer | Buyer | Buyer |
| Delivery To Destination | Buyer | Buyer | Buyer | Buyer |
International Carriage Paid by the Seller
| Term | Definition | Applies To |
| CFR | Cost and Freight - named ocean port of destination. | Ocean shipments that are not containerized. |
| CIF | Cost, Insurance and Freight - named ocean port of destination. | Ocean shipments that are NOT containerized. |
| CPT | Carriage Paid To - named place or port of destination. | Air or ocean containerized and roll-on roll-off shipments. |
| CIP | Carriage and Insurance Paid To - named place or port of destination. | Air or ocean containerized and roll-on roll-off shipments. |
Responsibilites
| CFR | CIF | CPT | CIP | |
| SERVICES |
Cost & Freight | Cost Insurance & Freight | Carriage Paid To | Carriage Insurance Paid To |
| Warehouse Storage | Seller | Seller | Seller | Seller |
| Warehouse Labor | Seller | Seller | Seller | Seller |
| Export Packing | Seller | Seller | Seller | Seller |
| Loading Charges | Seller | Seller | Seller | Seller |
| Inland Freight | Seller | Seller | Seller | Seller |
| Terminal Charges | Seller | Seller | Seller | Seller |
| Forwarder's Fees | Seller | Seller | Seller | Seller |
| Loading On Vessel | Seller | Seller | Seller | Seller |
| Ocean/Air Freight | Seller | Seller | Seller | Seller |
| Charges On Arrival At Destination | Buyer | Buyer | Seller | Seller |
| Duty, Taxes & Customs Clearance | Buyer | Buyer | Buyer | Buyer |
| Delivery To Destination | Buyer | Buyer | Buyer | Buyer |
Arrival At Stated Destination
| Term | Definition | Applies To |
| DAF | Delivered At Frontier - named place of destination, by land, not unloaded. | Any mode of transportation but must be delivered by land. |
| DES | Delivered Ex-Ship - named port of destination, not unloaded. | Ocean shipments only. |
| DEQ | Delivered Ex-Quay - named port of destination, unloaded, not cleared. | Ocean shipments only. |
| DDU | Carriage and Insurance Paid To - named place or port of destination. | Air or ocean containerized and roll-on roll-off shipments. |
| DDP | Delivered Duty Paid - named place of destination, not unloaded, cleared. | Any mode of transportation. |
Responsibilites
| DAF | DES | DEQ | DDU | DDP | |
|
SERVICES |
Delivered At Frontier | Delivered Ex Ship | Delivered Ex Quay Duty Unpaid | Delivered Duty Unpaid | Delivered Duty Paid |
| Warehouse Storage | Seller | Seller | Seller | Seller | Seller |
| Warehouse Labor | Seller | Seller | Seller | Seller | Seller |
| Export Packing | Seller | Seller | Seller | Seller | Seller |
| Loading Charges | Seller | Seller | Seller | Seller | Seller |
| Inland Freight | Seller | Seller | Seller | Seller | Seller |
| Terminal Charges | Seller | Seller | Seller | Seller | Seller |
| Forwarder's Fees | Seller | Seller | Seller | Seller | Seller |
| Loading On Vessel | Seller | Seller | Seller | Seller | Seller |
| Ocean/Air Freight | Seller | Seller | Seller | Seller | Seller |
| Charges On Arrival At Destination | Buyer | Buyer | Seller | Seller | Seller |
| Duty, Taxes & Customs Clearance | Buyer | Buyer | Buyer | Buyer | Seller |
| Delivery To Destination | Buyer | Buyer | Buyer | Seller | Seller |
Distribution Index | Guidelines | Agents | Packaging | Catalogs | ICOTERMS
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