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Risk Cost Insurance

R C I

EXW FCA CPT CIP DAP DPU DDP
FAS FOB CFR CIF

Rules for sea and inland waterway transport

Rules for any modes of transport

Seller

Buyer

Costs

All costs are covered except documentation fees. Sales and purchase contracts should state clearly at what stage the buyer or seller is responsible for transportation and associated fees.

Risks

The possibility of an event which could cause loss of or damage to the goods is a “risk”. Buyers or sellers can protect themselves against risks by taking out transport insurance.

Insurance

Transport insurance is the responsibility of the seller.

Seller

Buyer

Costs

All costs are covered except documentation fees. Sales and purchase contracts should state clearly at what stage the buyer or seller is responsible for transportation and associated fees.

Risks

The possibility of an event which could cause loss of or damage to the goods is a “risk”. Buyers or sellers can protect themselves against risks by taking out transport insurance.

Insurance

Transport insurance is the responsibility of the seller.

Select Method

Rules for sea and inland waterway transport

Rules for any modes of transport

Any business involved in the delivery of product needs to be familiar with International Commercial Terms, or Incoterms. These dictate the legalities regarding ownership of the product, specifically when delivery occurs, at which point the customer takes on full ownership and responsibility of the goods in a transaction. This includes all rights and risks involved.

Rules for any mode of transport

EXW | Ex Works (named place of delivery) Incoterms® 2020 [UPDATED]

Ex WORKS (EXW) means that the seller delivers the goods to the buyer when it places the goods at the disposal of the buyer at a named place (like a factory or warehouse), and that named place may or may not be the seller’s premises. For delivery to occur, the seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

FCA | Free Carrier (named place of delivery) Incoterms® 2020 [UPDATED]

FCA means that the seller delivers the goods to the buyer in either one of two ways: When the specified location is the seller's premises, delivery occurs when they are loaded in means of transport arranged by the customer When the specified location is anywhere other than the seller's premises, delivery occurs after goods have been unloaded from the seller's means of transport at a checkpoint to be picked up by a carrier designated by the customer. Whichever of the two is chosen as the place of delivery, that place identifies where risk transfers to the buyer and the time from which costs are for the buyer’s account

CPT | Carriage Paid To (named place of destination) Incoterms® 2020 [UPDATED]

Carriage Paid To (CPT) means that the seller deliver the goods -and transfers the risk- to the buyer by handing them over to the carrier contracted by the seller or by procuring the goods so delivered. The seller may do so by giving the carrier physical possession on the goods in the manner and at the place appropiate to the means of transport used. Once the goods have been delivered to the buyer in this way, the seller does not guarantee that the goods will reach the place of destination in sound condition, in the stated quantity or indeed at all. This is because risk transfers from seller to buyer when the goods are delivered to the buyer by handing them over to the carrier; the seller must nonetheless contract for the carriage of the goods from delivery to the agreed destination. CPT means that delivery occurs when goods are handed to a carrier contracted by the seller. This method saves plenty of cost for the customer, who in turn assumes all risk once the carrier has the goods in hand.

CIP | Carriage and Insurance Paid to (named place of destination) Incoterms® 2020 [UPDATED]

Carriage and Insurance Paid to (CIP) means that the seller deliver the goods -and transfer the risk- to the buyer by handing them over to the carrier contracted by the seller or by procuring the goods so delivered. The seller may do so by giving the carrier physical possession on the goods in the manner and at the place appropiate to the menas of transport used. Once the goods have been delivered to the buyer in this way, the seller does not guarantee that the goods will reach the place of destination in sound condition, in the stated quantity or indeed at all. This is because risk transfers from seller to buyer when the goods are delivered to the buyer by handing them over to the carrier; the seller must nonetheless contract for the carriage of the goods from delivery to the agreed destination.

DAP | Delivered at Place (named place of destination) Incoterms® 2020 [UPDATED]

Delivered at Place (DAP) means that the seller delivers the goods -and transfer the risk- to the buyer when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named placed of destination or at the agreed point within that place, if any such point is agreed. The seller bears all risks involved in bringing the goods to the named place of destination or to the agreed point within that place. In this incoterms rule, therebefore, delivery and arrival at destination are the same.

DPU | Delivered at Place Unloaded (named place of destination) Incoterms® 2020 [UPDATED]

Delivered at Place Unloaded (DPU) means that the seller delivers the goods -and transfers the risk- to the buyer when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named place of destination or at the agreed point within that place, if any such point is agreed. The seller bears all risks involved in bringing the goods to and unloading them at the named place of destination. In this incoterms rule, therebefore, the the delivery and arrival at destination are the same. DPU is the only incoterms rule that requires the seller to unload goods at destination. The seller should therefore ensure that it is in a position to organise unloading at the named place. Should the parties intend the seller not to bear the risk and cost of unloading, the DPU rule should be avoided and DAP should be used instead.

DDP | Delivered Duty Paid (named place of destination) Incoterms® 2020 [UPDATED]

Delivered Duty Paid (DDP) means that the seller delivers the goods to the buyer when the goods are placed at the disposal of the buyer, cleared for import, on the arriving means of transport, ready for unloading, at the named place of destination or at the agreed point within that place, if any such point is agreed. The seller bears all risks involved in bringing the goods to the name place of destination or the agreed point within that place. In this incoterms rule, delivery and arrival at destination are the same.

Rules for Sea & Inland Waterway Transport

FAS | Free Alongside Ship (named port of shipment) Incoterms® 2020 [UPDATED]

Free Alongside Ship (FAS) means that the seller delivers the goods to the buyer when the goods are placed alongside the ship (e.g. on a quay or a barge) nominated by the buyer at the named port of shipment when the seller procures good already so delivered. The risk of loss of or damage to the goods transfers when the goods are alongside the ship and the buyer bears all costs from that moment onward.

FOB | Free On Board (named port of shipment) Incoterms® 2020 [UPDATED]

Free On Board (FOB) means that the seller delivers the goods to the buyer on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods transfers when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

CFR | Cost and Freight (named port of destination) Incoterms® 2020 [UPDATED]

Cost and Freight (CFR) means that the seller deliver the goods to the buyer on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their location in sound condition, in the stanted quantity ir, indeed, at all. In CFR, the seller owes no obligation to the buyer to purcharse insurance cover: the buyer would be well-advised therefore to purchase some cover for itself.

CIF | Cost, Insurance and Freight (named port of destination) Incoterms® 2020 [UPDATED]

Cost, Insurance and Freight (CIF) means that the seller delivers the goods to the buyer on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all.

Transport obligations, costs and risks

Indicates Seller’s

Indicates Buyer’s

Indicates mixed or shared

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