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INCO TERMS







INCO Terms


INternational COmmerce Terminology (INCO Terms) defines exactly the shipping responsibilities of both the buyer and the seller. This table illustrates the cost responsibilities for each party –.

Dubai



FCA - Free Carrier


This term means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. Seller pays for carriage to the named place.


FAS - Free Alongside Ship


This term means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. The seller is required to clear the goods for export. The buyer has to bear all costs & risks of loss or damage to the goods from that moment. This term can be used for ocean transport only.


FOB - Free on Board


This term means that the seller delivers when the goods pass the ship's rail at the named port of shipment. This means the buyer has to bear all costs & risks to the goods from that point. The seller must clear the goods for export. This term can only be used for ocean transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.


CFR - Cost and Freight


Costs from the seller’s door to the destination port will be paid by the seller. Given the seller is responsible for transportation, they also nominate the forwarder. The buyer will take care of the destination charges.


CIF - Cost, Insurance, Freight


The seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the cost & freight necessary to bring goods to named port of destination. Risk of loss & damage same as CFR. Seller also has to procure marine insurance against buyer's risk of loss/damage during the carriage. Seller must clear the goods for export. This term can only be used for ocean transport.

DDU - Delivered Duty Unpaid


This term means the seller delivers the goods to the buyer, not cleared for import, and not unloaded from arriving means of transport at the named place of destination. The seller bears all costs & risks involved in bringing the goods to the named place other than "duty" (which includes the responsibility for customs formalities & payment of those formalities, duties & taxes) for import into the country of destination. Buyer is responsible for payment of all customs & duties & taxes.
 


DDP - Delivered Duty Paid


This term represents maximum obligation to the seller. This term should not be used if the seller is unable to directly or indirectly to obtain the import license. The terms means the same as the DDU term with the exception that the seller also will bear all costs & risks of carrying out customs formalities including the payment of duties, taxes & customs fees.



INCO TERMS

EXW - Ex Works

FOB - Free on Board

CFR - Cost and Freight

CIF - Cost, Freight and Insurance

DAT - Delivered at Terminal

DAP - Delivered at Place

DDP - Delivered Duty Paid

  Pickup & Delivery BUYER SELLER SELLER SELLER SELLER SELLER SELLER
  Handling Fees BUYER SELLER SELLER SELLER SELLER SELLER SELLER
  Export Documents BUYER SELLER SELLER SELLER SELLER SELLER SELLER
  Container Loading (if required) BUYER SELLER SELLER SELLER SELLER SELLER SELLER
  Terminal Fees BUYER SELLER SELLER SELLER SELLER SELLER SELLER
  Freight BUYER BUYER SELLER SELLER SELLER SELLER SELLER
  Import Documents BUYER BUYER BUYER SELLER SELLER SELLER SELLER
  Inland to Terminal BUYER BUYER BUYER SELLER SELLER SELLER SELLER
  Container Unloading BUYER BUYER BUYER SELLER SELLER SELLER SELLER
  Import Handling BUYER BUYER BUYER BUYER SELLER SELLER SELLER
  Door Delivery BUYER BUYER BUYER BUYER ADVISE SELLER SELLER
  Customs Clearance BUYER BUYER BUYER BUYER ADVISE ADVISE SELLER
  Duties & Taxes BUYER BUYER BUYER BUYER BUYER BUYER SELLER