INCOTERMS

INCOTERMS

There are no international conventions inforce governing contracts for international sales of goods, so disputes and misunderstanding often arisen between buyers and sellers, mainly because of different interpretations about the term used in the contracts. in order to avoid the situation wich hinder the smooth flow of international trade, the international chamber of commerce has evolved standarize trade terms known as the "INCOTERMS" ( International rules for the interpretation of trade terms).

For easier reading and understanding, the 1990 revision of Incoterms has grouped the terms into four different categories.

"E" Term
The seller make the goods available to the buyer at the seller's own promises

EXW - Ex works

"F" Term
The sellers called upon the deliver the goods to carrier appointed by the buyer

FCA - Free Carrier
FAS - Free Alongside Ship
FOB - Free On Board

"C" Term
The sellers has to contract the carriage, but without assuming the risk of lost and damages to the goods or additional cost due to events occuring after shipment and despatch.

CFR - Cost and freight
CIF - Cost, Insurance and Freight
CPT - Carriage paid to
CIP - Carriage and Insurance Paid to

"D" Term
The sellers has to bear all costs and risk needed to bring the goods to the country of destination.

DAF - Delivered At Frontier
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Paid
DDP - Delivered Duty

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Noted:
resumed from Manual on Freight Forwarding 1st Edition United Nations ESCAP, for more details please place a comment or write email to g.arisandy@gmail.com