These two Incoterms are almost identical. When Carriage Paid To (CPT) and Carriage and Insurance Paid To (CIP) are used as the terms of sale, the seller will deliver the goods to a carrier or another named place that is agreed upon by the buyer and the seller. The seller must arrange for and pay the costs of transport or "carriage" necessary to deliver the goods to that named destination. The one difference is that CIP dictates that the seller al [...]

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Free Carrier terms mean the seller will deliver the goods, already cleared for export, to a named place or named carrier specified by the buyer. The named place of delivery is critical to note because it identifies exactly where the seller’s obligation ends and where the buyer’s responsibility begins. The named place or point of departure is usually the seller’s premises, but it can also be a named cargo terminal or tendered to a carrier [...]

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This Incoterm means the seller will make the goods available to the buyer at a named place, usually the seller's factory or warehouse. The buyer must make the arrangements to collect the goods, at the buyer's expense and risk, and to clear the goods for export. When making a purchase under Ex Works, most of the responsibilities and risk of transportation fall on the buyer. Consider the following hypothetical shipment to help explain the respon [...]

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INCOTERMS, an abbreviation for International Commercial terms, are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. Incoterms are widely used in international and domestic commercial transactions, therefore it is essential that you are aware of these terms of trade prior to shipment. Which terms you and your seller/buyer agree upon will define the responsibilities each party has for t [...]

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