IIBR, Pune, Incoterm, MBA

Slide 1: 

1. EXW (Ex-Works): Foreign buyer should take delivery of the goods at the exporter’s premises. The other cost and risk involved in bringing the goods from the place of the exporter to the desired destination will be on the buyer’s account. 2. FCA/FRC (Free Carrier ) In case of multimodal transport Responsibility upto the named point and carrier 3. FAS (Free alongside ship) Cost incurred in delivering the goods at the port of export alongside the vessel. Does not include the charges for loading the goods on board the vessel. 4. FOB (Free on board) Includes ex-works price + transportation upto place of ship + wharfrage and portage + custom dues + export duties + cost of checking of quality measures, weight or quality if any. Should carry the wording, ‘ship on board’ in the bill of lading and carrier’s signature.

Slide 2: 

5. CFR/C&F (Cost & Freight) FOB + freight charges of transportation to port of destination Risk of the seller upto the port of shipment. 6. CIF (Cost, Insurance & Freight) C&F + marine insurance upto port of destination Risk upto boarding the ship 7. CPT/FCP (Freight or carriage paid to) By rail, road or inland waterways Seller responsible for the carriage of goods to the agreed destination Freight paid to the agreed point 8. CIP (carriage and insurance paid to) FCP (freight carriage paid to) + insurance 9. DAF (Delivered at Frontier) By rail or road Responsibility of the seller upto buyer’s frontier before the custom’s border of the country

Slide 3: 

10. DES/EXS (Delivery Ex ship) All the risk at sellers cost upto the port of destination in the ship. 11. DEQ (Ex Quay) Responsibility upto named Quay after crossing the customs border including the cost of unloading goods from the ship (freight + insurance) 12. DDU (Delivery, duty unpaid) Requires that the seller delivers the goods to the buyer without clearing for import and without unloaded at the point or place named in the sales agreement. The seller bears all costs and risks up to this location. 13. DDP (Delivery, duty Paid) All costs, risks upto the named destination including duty + fees + charges + VAT 14. FOR (free on rail)/FOT(free on truck) Seller’s obligations till the goods are delivered to the carrier (train/truck) 15. FOA/FOB Airport Delivery to the air carrier at the airport.