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    Inco Terms: EXW (Ex Works)

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    fcchemicalsupply Company
    INCO Terms define the responsibilities of buyers and sellers in international commercial transactions. They clarify when ownership transfers and who is responsible for transportation and insurance costs. The terms indicate where these responsibilities change hands, such as Free On Board (FOB), where the buyer assumes risks and costs when goods are loaded on the ship. INCO Terms standardize international trade by outlining key details like payment obligations and customs clearance using internationally recognized definitions.

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    Inco Terms: EXW (Ex Works)

    Uploaded by

    fcchemicalsupply Company
    27 views3 pages
    INCO Terms define the responsibilities of buyers and sellers in international commercial transactions. They clarify when ownership transfers and who is responsible for transportation and insurance costs. The terms indicate where these responsibilities change hands, such as Free On Board (FOB), where the buyer assumes risks and costs when goods are loaded on the ship. INCO Terms standardize international trade by outlining key details like payment obligations and customs clearance using internationally recognized definitions.

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    INCO Terms define the responsibilities of buyers and sellers in international commercial transactions. They clarify when ownership transfers and who is responsible for transportation and insurance costs. The terms indicate where these responsibilities change hands, such as Free On Board (FOB), where the buyer assumes risks and costs when goods are loaded on the ship. INCO Terms standardize international trade by outlining key details like payment obligations and customs clearance using internationally recognized definitions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    Inco Terms: EXW (Ex Works)

    Uploaded by

    fcchemicalsupply Company
    INCO Terms define the responsibilities of buyers and sellers in international commercial transactions. They clarify when ownership transfers and who is responsible for transportation and insurance costs. The terms indicate where these responsibilities change hands, such as Free On Board (FOB), where the buyer assumes risks and costs when goods are loaded on the ship. INCO Terms standardize international trade by outlining key details like payment obligations and customs clearance using internationally recognized definitions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    INCO TERMS

    INCO Terms are internationally accepted commercial terms defining the respective roles of
    the buyer and seller in the arrangement of transportation and other responsibilities, and
    clarify when the ownership of the merchandise takes place. They are used in conjunction
    with a sales agreement or other method of transacting the sale. Below is an example of how
    INCO Terms work in action. The definitions provided here are the most common uses of
    each term, but are not the only way these terms are used. Pay close attention to the location
    listed for each term, as this indicates where payment details change from Shipper to
    Consignee.

    EXW (Ex Works) – (factory, mill, warehouse: your door) Title and risk pass to buyer including
    payment of all transportation and insurance cost from the seller’s door. Used for any mode
    of transportation.
    FCA (Free Carrier) – (pick a place after your origin to start) Title and risk pass to buyer
    including transportation and insurance cost when the seller delivers goods cleared for
    export to the carrier. Seller is obligated to load the goods on the Buyer’s collecting vehicle; it
    is the Buyer’s obligation to receive the Seller’s arriving vehicle unloaded.

    FAS (Free Alongside Ship) – (port, after all origin port charges) Title and risk pass to buyer
    including payment of all transportation and insurance cost once delivered alongside ship by
    the seller. Used for sea or inland waterway transportation. The export clearance obligation
    rests with the seller.
    FOB (Free On Board) – (port-same as FAS) Risk pass to buyer including payment of all
    transportation and insurance cost once delivered on board the ship by the seller. Used for
    sea or inland waterway transportation.

    CFR (Cost and Freight) – (destination port-paid to arrival at destination port) Title, risk and
    insurance cost pass to buyer when delivered on board the ship by seller who pays the
    transportation cost to the destination port. Used for sea or inland waterway transportation.

    CIF (Cost, Insurance and Freight) – (destination port-same as CFR, but includes insurance)
    Title and risk pass to buyer when delivered on board the ship by seller who pays
    transportation and insurance cost to destination port. Used for sea or inland waterway
    transportation.

    CPT (Carriage Paid To) – (place at destination-includes all destination port charges) Title,
    risk and insurance cost pass to buyer when delivered to carrier or seller who pays
    transportation and insurance cost to destination. Used for any mode of transportation.

    CIP (Carriage and Insurance Paid To) – (place at destination-same as CPT, but includes
    insurance) Title and risk pass to buyer when delivered to carrier by seller who pays
    transportation and insurance cost to destination. Used for any mode of transportation.

    DAF (Delivered to Frontier) – (border of country-same as paid by seller to border-all other


    charges to buyer) Title, risk and responsibility for import clearance pass to buyer when
    delivered to named border point by seller. Used for any mode of transportation. (border of
    country-same as paid by seller to border-all other charges to buyer) Title, risk and
    responsibility for import clearance pass to buyer when delivered to named border point by
    seller. Used for any mode of transportation.

    DES (Delivered Ex Ship) – (on board ship to destination port) Title, risk, responsibility for
    vessel discharge and import clearance pass to buyer when seller delivers goods on board
    the ship to destination port. Used for sea or inland waterway transportation.

    DEQ (Delivered Ex Quay i.e. Duty Paid) – (destination port-includes duties and taxes, but
    not destination charges or delivery) Title and risk pass to buyer when delivered on board the
    ship at the destination point by the seller who delivers goods on dock at destination point
    cleared for import. Used for sea or inland waterway transportation.

    DDU (Delivered Duty Unpaid) – (consignee door-excluding duties and taxes) Title, risk, and
    responsibility for vessel discharge and import clearance pass to buyer when seller delivers
    goods on board the ship to destination port. Used for sea or inland waterway
    transportation.

    DDP (Delivered Duty Paid) – (consignee door-includes all charges origin to destination)
    Title and risk pass to buyer when seller delivers goods to named destination point cleared
    for import. Used for any mode of transportation.

    Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any mode of
    transportation. FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.

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