{"id":2533,"date":"2025-09-30T15:59:10","date_gmt":"2025-09-30T21:59:10","guid":{"rendered":"https:\/\/grupocropa.com\/?p=2533"},"modified":"2025-10-01T10:44:32","modified_gmt":"2025-10-01T16:44:32","slug":"incoterms-2","status":"publish","type":"post","link":"https:\/\/grupocropa.com\/eng\/2025\/09\/30\/incoterms-2\/","title":{"rendered":"Incoterms\u00a0\u00ae"},"content":{"rendered":"
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Incoterms\u00ae<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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The rules for the 2020 edition of Incoterms\u00ae are essential when trading in the modern world. They are standard sets of global trading terms and conditions to help traders, lawyers, shippers and insurers when goods are bought, sold and transported.<\/p>

The CROPA DSV is not the beneficial owner of the Incoterms\u00ae trademark. Incoterms\u00ae is a registered trademark of the International Chamber of Commerce. Further details and the official text relating to Incoterms\u00ae rules can be found at the official International Chamber of Commerce (ICC) website.<\/em><\/p>

Essentially, the 11 rules set out your obligations and those of your trading partners (for example, who is responsible for transport, import and export clearance etc.) and, importantly, the point in the journey where risk transfers from the seller to the buyer.<\/p>

\u00a0<\/h2>

Who created the rules for Incoterms\u00ae?<\/strong><\/h2>

They were created and published by the International Chamber of Commerce (ICC), and are revised every ten years. The ICC announced the 2020 update to the rules for Incoterms\u00ae in September 2019.<\/p>

Why are the rules for Incoterms\u00ae important to you?<\/strong><\/h2>

Because you and your trading partner need to agree a precise understanding of your obligations to each other, and where responsibility lies in the event of loss, damage or accident.<\/p>

What, exactly, do the rules cover?<\/strong><\/h2>

The eleven rules are divided into two groups. The first seven rules apply to all modes of transport, while the last four rules apply to sea and inland waterway transport only.<\/p>

The rules for any transport mode you use include:<\/p>

  • Ex Works (EXW)<\/li>
  • Free Carrier (FCA)<\/li>
  • Carriage Paid to (CPT)<\/li>
  • Carriage and Insurance paid to (CIP)<\/li>
  • Delivered At Place (DAP)<\/li>
  • Delivered at Place Unloaded (DPU)\u00a0NEW<\/sup><\/li>
  • Delivered Duty Paid (DDP)<\/li><\/ul>

    The rules for sea and inland waterway transport only include:<\/p>

    • Free Alongside Ship (FAS)<\/li>
    • Free On Board (FOB)<\/li>
    • Cost and Freight (CFR)<\/li>
    • Cost Insurance and Freight (CIF)<\/li><\/ul><\/div><\/div><\/section>
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      Rules that apply to all transport modes<\/strong><\/h2>

      \"\"<\/p>

      What is Ex Works \u2013 EXW?<\/strong><\/h4>

      EXW means the seller delivers the goods when they are packaged and made available to the buyer at an agreed place \u2013 which could be the seller\u2019s premises or another named place such as a factory or warehouse.<\/p>

      It\u2019s the buyer\u2019s responsibility to load the goods onto a vehicle, to complete all export procedures and to transport the goods. And the buyer is responsible for the costs related to the collection. So, if you are the seller and you load the goods, it is at the buyer\u2019s risk!<\/p><\/div><\/div><\/section>

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      What is Free Carrier \u2013 FCA?<\/strong><\/h4>

      FCA is a flexible rule where the buyer organises the main carriage.<\/p>

      The seller delivers the goods to the carrier or person nominated by the buyer. If the nominated place is the seller\u2019s premises, then the seller has the responsibility of loading the vehicle \u2013 in contrast to EXW. Remember, you and the other trading party need to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.<\/p>

      The seller is responsible for export clearance, while the buyer assumes all risks and costs after the goods have been delivered to the named place.<\/p>

      FCA is the preferred choice for containerised goods.<\/p><\/div><\/div><\/section>

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      What is Carriage Paid To \u2013 CPT?<\/strong><\/h4>

      In this case the seller arranges carriage to the named place, but doesn\u2019t insure the goods to the named place. Risk transfers from the seller to the buyer at the point where the goods are taken in charge by the carrier. Watch out for Terminal Handling Charges (THC), which are not always included by the carrier in their freight rates. So, if you are the buyer, make sure to avoid any surprises!<\/p><\/div><\/div><\/section>

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      What is Carriage and Insurance Paid to \u2013 CIP?<\/strong><\/h4>

      CIP means the seller is responsible for arranging carriage and insuring the goods \u2013 although remember the seller only has to arrange a minimum level of cover. As with CPT, delivery takes place, and risk transfers from seller to buyer, at the point where the goods are taken in charge by a carrier.<\/p>

      As with CTP, be aware of Terminal Handling Charges (THC), which are not always included by the carrier in their freight rates. Again, buyer beware applies!<\/p><\/div><\/div><\/section>

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      What is Delivered at Place \u2013 DAP?<\/strong><\/h4>

      The seller is responsible for carriage and delivering the goods to the named place \u2013 but not for unloading the goods. That\u2019s the buyer\u2019s responsibility and this is when risk passes from the seller to the buyer, who is also responsible for import clearance and other local taxes or import duties.<\/p><\/div><\/div><\/section>

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      What is Delivered at Place Unloaded \u2013 DPU?<\/strong><\/h4>

      This rule is new for 2020.<\/p>

      The seller is responsible for carriage, delivering the goods to the specified place\u00a0and\u00a0<\/em>\u00a0for unloading. Risk transfers to the buyer once the goods are unloaded from the arriving means of transport.<\/p>

      The place of delivery – and therefore unloading – should be specified as precisely as possible. Ideally, the place should be specified to a point within a location, e.g. Loading Dock 2 at the customer’s premises, and not just the street address.<\/p><\/div><\/div><\/section>

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      What is Delivered Duty Paid \u2013 DDP?<\/strong><\/h4>

      The seller arranges carriage, delivers the goods to the named place and clears them for import and pays the applicable taxes and duties (eg VAT, GST etc.) \u2013 and this is the only rule which obliges the seller to take care of duties and taxes.\u00a0<\/p>

      Risk transfers to the buyer when the goods are made available, ready for unloading.<\/p>

      This rule can be problematical for a seller, because import rules are often complex and bureaucratic. If you are the seller, it\u2019s usually best left to the buyer to take care of the incoming obligations.<\/p><\/div><\/div><\/section>

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      Rules for sea and inland waterway transport only<\/strong><\/h2>

      \"\"<\/h4>

      What is Free Alongside Ship \u2013 FAS?<\/strong><\/h4>

      This rule works best in situations where the seller has direct access to the vessel for loading, for example, bulk cargos or non-containerised goods. If you are shipping containerised goods, consider FCA instead.<\/p>

      The seller delivers the goods, cleared for export, alongside the vessel at the named port, and at this point the risk transfers to the buyer, who is responsible for loading the goods and all costs which follow.<\/p><\/div><\/div><\/section>

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      What is Free on Board (FOB)?<\/strong><\/h4>

      FOB, as with FAS, is best used where the seller has direct access to the vessel for loading \u2013 so if you are shipping containerised goods, consider FCA instead.<\/p>

      The seller delivers the goods, cleared for export, and loads the goods on board the vessel at the named port. Once loaded, the risk transfers to the buyer, who bears the costs from this point.\u00a0<\/p><\/div><\/div><\/section>

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      What is Cost and Freight \u2013 CFR?<\/strong><\/h4>

      As with FOB and FAS, this rule is best used in situations where the seller has direct access to the vessel for loading, and again, if you are shipping containerised goods, consider CPT instead.<\/p>

      The seller arranges and pays for transport to a named port, delivers the goods cleared for export, and loads the goods on board the vessel. However, the risk transfers from seller to buyer when the goods have been loaded on board, before the main carriage takes place. The seller is not responsible for insuring the goods for the main carriage.<\/p><\/div><\/div><\/section>

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      What is Cost, Insurance and Freight \u2013 CIF?<\/strong><\/h4>

      As with FOB, FAS and CFR, if you are the seller and have direct access to the vessel for loading (bulk cargos or non-containerised goods), then you should consider using CIP instead.<\/p>

      When using CIF, the seller arranges and pays for the transport to the named port, delivers the goods cleared for export, and loads the goods onto the vessel. As with CFR, the buyer assumes the risk once the goods are loaded on board the vessel, before the main carriage takes place.<\/p>

      The seller also arranges and pays for insurance for the goods for carriage to the named port, but as with CIP, only a minimum level of cover is required.<\/p><\/div><\/div><\/section>

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      The rules for the 2020 edition of Incoterms\u00ae are essential when trading in the modern world<\/p>","protected":false},"author":2,"featured_media":2597,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[33],"class_list":["post-2533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sin-categoria","tag-eng"],"_links":{"self":[{"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/posts\/2533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/comments?post=2533"}],"version-history":[{"count":35,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/posts\/2533\/revisions"}],"predecessor-version":[{"id":2665,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/posts\/2533\/revisions\/2665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/media\/2597"}],"wp:attachment":[{"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/media?parent=2533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/categories?post=2533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/grupocropa.com\/eng\/wp-json\/wp\/v2\/tags?post=2533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}