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Incoterms

INCOTERMS (INternational COmmercial TERMS), are a set of uniform rules that define the trade terms in international arena. These define the rights and obligations of parties involved in an international transaction.

The INCOTERMS are drafted and published by ICC (International Chamber of Commerce).

INCOTERMS do not cover ownership or the transfer of title of goods. It is crucial to agree on the INCOTERMS at the start of the negotiation between the buyer and seller, as it affects the costs and responsibilities involved in shipping, insurance and tariffs.

Following, are the standard INCOTERMS 2012 :
INCOTERMS are designed to arrange for the transfer of risk from seller to buyer at an unambiguous convenient place where goods can be inspected.

The Final choice of INCOTERM used in the contract is for negotiation between buyer and seller.

Rules for any mode or modes of transport Rules for sea and inland waterway transport
EXW FCA CPT CIP DAT DAP DDP FAS FOB CFR CIF
Ex Works Free Carrier Carriage Paid To Carriage & insuarance Paid To Delivered at Terminal Delivered at Place Delivered Duty Paid Free Alongside Ship Free on Board Cost & Freight Cost, insurence & Freight
Cost Heading Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays Who Pays
Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Marking & Labeling Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Block and Brace 1 1 1 1 1 1 1 1 1 1 1
Export Clearance
(License,EEI/AES)
Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Freight Forwarder Documentation Fees Buyer Buyer Seller Seller Seller Seller Seller Buyer Buyer Seller Seller
Inland Freight to Main Carrier Buyer 2 Seller Seller Seller Seller Seller Seller Seller Seller Seller
Origin Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller Buyer Seller Seller Seller
Vessel Loading Charges Buyer Buyer Seller Seller Seller Seller Seller Buyer Seller Seller Seller
Ocean Freight/Air Freight Buyer Buyer Seller Seller Seller Seller Seller Buyer Buyer Seller Seller
Nominate Export Forwarder Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Buyer Buyer Seller
Marine Insurance 3 3 3 Seller 3 3 3 3 3 3 Seller
Unload Main Carrier Charges Buyer Buyer 4 4 Seller Seller Seller Buyer Buyer 4 4
Destination Terminal Charges Buyer Buyer 4 4 4 Seller Seller Buyer Buyer 4 4
Nominate on- Carrier Buyer Buyer 5 5 5 5 Seller Buyer Buyer Buyer Buyer
Security Information Requirements Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
Customs Broker Clearance Fees Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer Buyer Buyer Buyer
Duty,Customs Fees,Taxes Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer Buyer Buyer Buyer
Delivery to Buyer Destination Buyer Buyer 5 5 5 5 Seller Buyer Buyer Buyer Buyer
Delivering Carrier Unloading Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
Notes: 1 - Incoterms® 2012 do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sales contract.
2 - FCA seller's Facility – Buyer pays inland freight; other FCA qualifiers. seller arranges and loads pre-carriage carrier and pays inland freight to the 'F' delivery place.
3 - Incoterms® 2012 does not obligate the buyer nor must the seller to insure the goods, therefore this issue be be addressed elsewhere in the sales contract.
4 -

Charges paid by Buyer or seller depending on contract of carriage.

5 -

Charges paid by seller if through Bill of Lading or door-to-door rate to Buyer's destination.