• Español

INCOTERMS 2020

INCOTERMS (International Commercial Terms) are a set of standardized terms used in international trade to define the responsibilities, costs, and risks between the buyer and the seller in a commercial transaction. Established by the International Chamber of Commerce (ICC), INCOTERMS play a crucial role in facilitating global trade by providing a clear and uniform framework for international commercial transactions. In this table, we present the INCOTERMS 2020 along with a detailed explanation of each to help better understand their application and implications.

Table of INCOTERMS 2020:

INCOTERM

Meaning

EXW (Ex Works)

The seller delivers the goods at their own premises and does not handle export procedures. The buyer assumes all risks and costs associated with transporting and exporting the goods from the seller’s premises to the final destination. This term places most of the responsibility and costs on the buyer, as they must arrange and pay for international transportation, insurance, customs duties, and any other costs related to exporting the goods.

FCA (Free Carrier)

The seller delivers the goods to a carrier designated by the buyer at an agreed place, usually at the seller’s premises or another specified location in the sales contract. From this point, the buyer assumes responsibility for arranging and paying for international transportation of the goods to the final destination, as well as associated risks during transportation.

FAS (Free Alongside Ship)

The seller delivers the goods alongside the vessel at the designated port of shipment, assuming the costs and risks associated with delivering the goods up to the point of transshipment. From this point, the responsibility for the goods and the costs associated with maritime transportation shift to the buyer.

FOB (Free On Board)

El vendedor entrega la mercancía a bordo del buque en el puerto de embarque designado, asumiendo los costos y los riesgos asociados hasta que la mercancía se cargue a bordo del buque. A partir de este punto, la responsabilidad de la mercancía y los costos asociados con el transporte marítimo recae en el comprador.

CFR (Cost and Freight)

The seller delivers the goods on board the vessel at the designated port of destination, covering the costs and risks associated with maritime transportation up to this point. From this point, the responsibility for the goods and the costs associated with maritime transportation shift to the buyer.

CIF (Cost, Insurance and Freight)

The seller delivers the goods on board the vessel at the designated port of destination, covering the costs and risks associated with maritime transportation and maritime insurance up to this point. From this point, the responsibility for the goods and the costs associated with maritime transportation shift to the buyer.

CPT (Carriage Paid To)

The seller delivers the goods to the carrier designated by the buyer at an agreed place, assuming the costs and risks associated with transportation up to this point. From this point, the responsibility for the goods and the costs associated with transportation shift to the buyer.

CIP (Carriage and Insurance Paid To)

The seller delivers the goods to the carrier designated by the buyer at an agreed place, assuming the costs and risks associated with transportation and insurance up to this point. From this point, the responsibility for the goods and the costs associated with transportation shift to the buyer.

DAP (Delivered at Place)

The seller delivers the goods at the disposal of the buyer at an agreed place, assuming the costs and risks associated with transportation up to this point. From this point, the responsibility for the goods and the costs associated with transportation shift to the buyer.

DPU (Delivered at Place Unloaded)

The seller delivers the goods unloaded and ready for unloading at an agreed place, assuming the costs and risks associated with transportation up to this point. From this point, the responsibility for the goods and the costs associated with transportation shift to the buyer.

DDP (Delivered Duty Paid)

The seller delivers the goods at the designated destination, assuming all costs and risks associated with transportation, including import duties and other taxes, up to this point. From this point, the responsibility for the goods and the costs associated with transportation shift to the buyer.

INCOTERMS 2020 are an essential tool for facilitating international trade by clearly establishing the terms and conditions for the delivery of goods between the buyer and the seller. It is crucial to understand and correctly apply INCOTERMS when engaging in global commercial transactions to avoid misunderstandings and conflicts. By providing a uniform and consistent framework for international commercial transactions, INCOTERMS 2020 contribute to promoting more efficient and seamless global trade.

If you have any questions regarding the process, please contact us via email: info@transitosmarioramos.com or call us at +34 922 28 16 60.