This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday Cost and Freight (CFR) and Cost, Insurance, and Freight (CIF) are the last two trade terms of the total 11 Incoterms® Rules, and apply only to sea and inland waterway transport. Under CFR and CIF, the seller assumes the costs of loading the goods onto the vessel for departure, as well as cost of carriage to the [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday Free Alongside Ship (FAS) and Free on Board (FOB) are the first two terms on the list that only apply to sea and inland waterway transport. We will consider them together due to the simple difference between them. Both terms place primary responsibility on the buyer to assume costs and risks, unlike the last term consi [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday “Delivered Duty Paid” places the most responsibility on the seller out of all the Incoterms®. DDP goes beyond the seller assuming costs and risks of carriage to an agreed upon destination (as in DAP and DPU), to fulfilling export, transit, and import requirements as well. If an importer wants a shipment to arrive [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday DAP and DPU are nearly identical Incoterms® but with a key difference. ➤ The difference is that under DPU, the seller must also arrange for the unloading of the goods at the agreed destination, and is responsible for all costs and risks up until this point. Under DAP, risks and costs are the responsibility of t [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday 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 o [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday Summary “Free Carrier” (FCA) means 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 [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday “Ex Works” (EXW) 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 [...]

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This article is part of our weekly blog series on the Incoterms® Rules — we will be looking at a new term every Tuesday Summary International Commercial terms (“Incoterms®” for short) are a set of three-letter standard trade terms used in international contracts for the sale of goods. Incoterms are widely used in international and domestic commercial transactions, and are essential to understand prior to a shipment. Which ter [...]

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