CHAPTER 9: INCOTERMS

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CHAPTER 9: INCOTERMS by Mind Map: CHAPTER 9: INCOTERMS

1. STRUCTURE OF INCOTERMS

1.1. E TERMS

1.1.1. the seller only makes the goods available to the buyer at the seller's own premises

1.1.1.1. EXW- EX Works

1.1.1.1.1. refers to an agreement between the buyer (importer) and exporter (seller)

1.2. F TERMS

1.2.1. the seller is called upon to deliver the goods to a carrier appointed by the buyer

1.2.1.1. FCA- Free Carrier (named place)

1.2.1.1.1. means that the exporter fulfills his obligation to deliver the goods to the buyer

1.2.1.2. FAS- Free Alongside Ship (named port of shipment)

1.2.1.2.1. means that the exporter delivers when the goods are placed alongside the vessel at the named port of shipment

1.2.1.3. FOB- Free On Board (named port of shipment)

1.2.1.3.1. means that the exporter delivers when the goods pass the ship's rail at the named port of shipment

1.3. C TERMS

1.3.1. the seller has to contract for carriage, without assuming the risk of loss of or damage to the goods or additional costs due to events occurring after shipment and despatch

1.3.1.1. CFR- Cost and Freight (named of port destination)

1.3.1.1.1. means that the seller must pay the cost and freight necessary to bring the goods to the named port of destination

1.3.1.2. CIF- Cost, Insurance, and Freight (named port of destination)

1.3.1.2.1. the exporter has the same obligations as under CFR, and added task of procuring marine insurance against the buyer's risk of loss or damage of the goods during the carriage

1.3.1.3. CPT- Carriage Paid To (named place of destination)

1.3.1.3.1. means that the seller pays the freight for the carriage of the goods to the named destination

1.3.1.4. CIP- Carriage and Insurance Paid To (named place of destination)

1.3.1.4.1. similar to CPT, the seller's risks do not end until the the goods have been delivered to the carrier

1.4. D TERMS

1.4.1. the seller has to bear all costs and risks needed to bring the goods to the place of destination

1.4.1.1. DAP- Delivery at Place

1.4.1.1.1. replaced the terms DAF, DES, DDU in 2010 revision

1.4.1.2. DDP- Delivery Duty Paid (named place of destination)

1.4.1.2.1. means that the exporter fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation