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An Introduction to Incoterms® 2020

There are 11 Incoterms 2020 rules. These globally-recognized trade terms determine how costs and risks are split between buyers and sellers conducting international transactions, and when the risk or liability for the goods transfer from the seller to the buyer. This video explains each of the 11 terms. ************* Incoterms Chart of Responsibilities and Transfer of Risk: https://www.shippingsolutions.com/inc... An Introduction to Incoterms eBook: https://www.shippingsolutions.com/int... Find 100s of articles about various aspects of exporting on Passages: The International Trade Blog: https://www.shippingsolutions.com/blog ************** EXW (Ex Works) Under Ex Works, the seller fulfills its obligations by having the goods available for the buyer to pick up at its premises or another named place, like a factory or warehouse, on a date agreed on by both parties or within an agreed-upon timeframe. With EXW, the buyer bears all risk and costs. FCA (Free Carrier) With Free Carrier, the seller is responsible for either making the goods available at its own premises or at a named place. In either case, the seller is responsible for loading the goods on the buyer's transport and is responsible for delivery to the port and export clearance including security requirements. Risk transfers once the goods are loaded on the buyer’s transport. CPT (Carriage Paid To) The seller clears the goods for export and delivers them to the carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible for the international transportation costs associated with delivering goods to the named foreign place of destination. The transfer of risk transfers as soon as the goods are delivered to the international carrier. CIP (Carriage and Insurance Paid To) The seller clears the goods for export and delivers them to the carrier or another person stipulated by the seller at a named place of shipment, at which point risk transfers to the buyer. Seller is responsible for the transportation costs associated with delivering goods and procuring insurance coverage to the named place. DAP (Delivered at Place) Seller clears the goods for export and bears all risks and costs associated with delivering the goods to the named foreign destination not unloaded. DAP means the buyer is responsible for all costs and risks associated with unloading the goods and clearing customs to import the goods into the named country of destination. DPU (Delivered at Place Unloaded) This term is often used for consolidated containers with multiple consignees. DDP (Delivered Duty Paid) The seller bears all risks and costs associated with delivering the goods to the named place of destination ready for unloading and cleared for import. FAS (Free Alongside Ship) The seller clears the goods for export and delivers them when they are placed alongside the vessel at the named port of shipment. Buyer assumes all risks and costs for goods from this point forward. This is not a commonly used term except for goods that may be difficult to load. FOB (Free on Board) The seller clears the goods for export and delivers them when they are on board the vessel at the named port of shipment. Buyer assumes all risks and costs for goods from this moment forward. CFR (Cost and Freight) Seller clears the goods for export and delivers them when they are on board the vessel at the port of shipment. Seller bears the cost of freight to the named port of destination. Buyer assumes all risks for the goods from the time the goods have been delivered on board the vessel at the port of shipment. CIF (Cost, Insurance and Freight) The seller clears the goods for export and delivers them when they are on board the vessel at the port of shipment. Seller bears the cost of freight and insurance to the named port of destination. Buyer is responsible for all costs associated with unloading the goods at the named port of destination and clearing goods for import. *************** Chapters 00:00 Introduction 00:52 What are Incoterms? 01:34 Incoterms are not... 02:30 Incoterms for Any Mode of Transport 02:34 EXW (Ex Works) 03:02 FCA (Free Carrier) 03:26 CPT (Carriage Paid To) 04:00 CIP (Carriage and Insurance Paid To) 04:25 DAP (Delivered at Place) 04:47 DPU (Delivered at Place Unloaded) 05:05 DDP (Delivered Duty Paid) 05:44 Incoterms for Sea and Inland Waterway Transport 05:49 FAS (Free Alongside Ship) 06:09 FOB (Free on Board) 06:33 CFR (Cost and Freight) 06:52 CIF (Cost Insurance and Freight) 07:21 Where to Include Your Chosen Incoterm ************** #exportdocumentationsoftware #exportdocuments #usexportinghelp #incoterms2020 #incoterms2024 ***** Incoterms® and the Incoterms® 2020 logo are trademarks of ICC. Use of these trademarks does not imply association with, approval of or sponsorship by ICC unless specifically stated above. The Incoterms® Rules are protected by copyright owned by ICC.