Understand international shipping terms and responsibilities.
Incoterms (International Commercial Terms) are a set of standardized trade rules created by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in international trade. They outline who is responsible for transportation, insurance, duties, and other costs.
The table below outlines which party (Buyer or Seller) is responsible for various costs and logistics under different Incoterms.
Incoterms | Load to Truck | Export Duty Payment | Transport to Exporter’s Port | Unload at Port of Origin | Landing Charges at Origin | Transport to Importer’s Port | Landing Charges at Destination | Unload at Importer’s Port | Transport to Destination | Insurance | Customs Clearance | Import Duties & Taxes |
---|---|---|---|---|---|---|---|---|---|---|---|---|
EXW | No | No | No | No | No | No | No | No | No | No | No | No |
FCA | Yes | Yes | Yes | Yes | No | No | No | No | No | No | No | No |
FAS | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No | No | No |
FOB | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No |
CFR | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | Yes | No | No |
CIF | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No |
CPT | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No |
CIP | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
DDU | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | No |
DDP | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes |
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