| Vendedor | Carga | Transporte | Aduana | Puerto o Aeropuerto de Origen | Transporte Internacional | Puerto o Aeropuerto de Destino | Aduana | Transporte en Destino | Descarga | Comprador | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXW | Riesgo | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| FCA | Riesgo | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| CPT | Riesgo | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | |
| CIP | Riesgo | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | |
| Seguro | 2 | 2 | 2 | 2 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | |
| DAP | Riesgo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 2 | 1 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 2 | 1 | |
| DPU | Riesgo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 | 1 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 1 | |
| DDP | Riesgo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | |
| FAS | Riesgo | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
| FOB | Riesgo | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | |
| CFR | Riesgo | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | |
| CIF | Riesgo | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 |
| Costo | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | |
| Seguro | 2 | 2 | 2 | 2 | 2 | 1 | 2 | 2 | 2 | 2 | 2 |
References
Seller
Buyer
EXW
Ex Work
FCA
Free Carrier
CPT
Carriage Paid To
CIP
Carriage and Insurance Paid To
DAP
Delivered to Place
DPU
Delivered at Place Unloaded
DDP
Delivered Duties Paid
FAS
Free Alongside Ship
FOB
Free On Board
CFR
Cost and Freight
CIF
Cost, Insurance and Freight
General features
.
At the time of deciding to export, the entrepreneur faces various aspects of international trade, where the costs, risks, and obligations associated with it are subject to negotiation, including pricing, expenses, customs duties, transportation, and insurance.
Each of these issues must be negotiated between the exporter and importer to clearly determine which of the parties is legally responsible for each of the aspects mentioned within the commercial transaction. Additionally, these negotiations can be exacerbated by disparities in language and culture.
To improve communication and reduce the risks of misunderstandings, the International Chamber of Commerce developed Incoterms, to serve to establish a standardized language that can be used by buyers and sellers involved in international business. Now, it is much easier for the parties to carry out a commercial transaction, without being affected by having a different language and/or different cultures.
How and why to use Incoterms terms?
The Incoterms establish clarity on issues such as:
Costs: Who pays for the different shipping costs (packaging, transportation, duties) that are found throughout the international physical distribution (DFI)?
Ownership: At various points in the DFI, will the parties know who owns the assets and bears the risk?
Liability: If the goods are damaged, who is responsible for paying damages, and at what time?
Use the Incoterms terms to establish the obligations, risks and costs with respect to: delivery conditions (destination, deadlines, proof requirements); obligation or process licenses and procedures; mode of transportation and conditions of transportation; and transfer of risk from seller to buyer Do not use Incoterms to: delineate the rights and obligations of service contracts or any non-delivery contracts; define legal remedies for non-compliance; and/or determine how title to the property is transferred.
Responsibilities according to Incoterms term
Each Incoterm is referred to by a three-letter abbreviation, and they are generally grouped into the following categories:
EXW
Ex Work
The seller/exporter makes the merchandise available to the buyer in its own warehouses, only dealing with its packaging.
The buyer/importer, therefore, is the one who assumes all expenses and responsibilities from the moment the merchandise crosses the warehouse, before loading it. The insurance is not mandatory, but if contracted, it would be assumed by the buyer since he is the one who assumes the risk.
This incoterm should not be used if the seller delivers the goods to a place other than its premises.
FCA
Free Carrier
The seller delivers the merchandise at an agreed point and assumes costs and risks until the delivery of the merchandise at that agreed point, including the costs of export clearance. Thus, the seller deals with internal transport and export customs procedures, except if the designated place is the seller’s facilities (FCA warehouse), in which case the merchandise is delivered at that point loaded on the means of transport arranged by the buyer assuming the cost the buyer.
The buyer assumes the expenses from loading on board to unloading, including insurance if contracted as he is the one who assumes the risk when the merchandise is loaded in the first means of transport.
The novelty of the FCA with respect to the 2010 incoterms is that when it comes to maritime transport, the buyer can instruct his carrier to issue a B/L (Bill of Landing / Letter of Shipment), to the seller with the specification “on board” (on board), as proof of the delivery of the merchandise to facilitate the operation of documentary credits and that the credit is thus paid to the seller as a guarantee from the Bank but who is not a party to the transport contract).
CPT
Carrier Paid To
The seller assumes the expenses until the delivery of the merchandise at the agreed place, that is, he is in charge of all the expenses at origin, the export clearance, the main transport and, generally, expenses at destination.
The buyer assumes the import formalities, the insurance if he hires it, since it is not mandatory. The risk passes to the buyer once the merchandise is loaded to the first means of transport contracted by the seller.
This incoterm is valid for any means of transport.
CIP
Carriage and Insurance Paid To
The seller bears the expenses until delivery at the agreed place of destination, that is, the expenses at origin, export clearance, freight and, in addition, insurance, which is mandatory.
The importer is responsible for import formalities and delivery to destination and assumes the risk when the merchandise is loaded on the first means of transport.
The novelty in this incoterm with respect to the 2010 incoterms resides again in the insurance coverage, in this case, the insurance, in addition to being mandatory, must contain the same coverage as those provided by Clauses A of the Institute Cargo Clause, the merchandise must be insured until delivery to the carrier at destination.
DAP
Delivered At Place
The seller assumes all the expenses and risks of the operation except for import clearance and unloading at destination, that is, all expenses at origin, freight and internal transport.
The buyer only has to deal with import clearance and unloading.
This incoterm is valid for all means of transport, insurance is not mandatory, but if the expenses are contracted, the seller will assume them.
DPU
Delivered at place Unloaded
The seller assumes the costs and risks arising from origin, packaging, loading, export clearance, freight, unloading at destination and delivery at the agreed point. The buyer assumes the import clearance procedures. This incoterm is newly created and replaces DAT, in reality what it does is expand the delivery options since DAT indicated that the delivery should be made at the terminal, now with DPU the entry can be made at another agreed place in addition to the terminal.
DDP
Delivered Duty Paid
The seller assumes all expenses and risks from packaging and verification in its warehouses to delivery at the final destination, including export and import clearance, freight and insurance if contracted.
The buyer must only receive the merchandise and generally unload it, although the seller can also take care of it.
This incoterm is just the opposite of EXW, the seller bears all costs and risks.
FAS
Free Alongside Ship
The seller delivers the merchandise at the loading dock of the port of origin and assumes the expenses until delivery, as well as the export customs procedures.
The buyer manages the cargo on board, stowage, freight and other expenses until delivery at destination, including import clearance and insurance if contracted as it is not mandatory. Adenás assumes the risks once the merchandise is on the loading dock before being loaded onto the ship.
This incoterm is only valid for maritime transport and is generally used for special goods that have particular cargo needs, it is not usual for palletized cargo or containers.
FOB
Free On Board
The seller bears the expenses until the merchandise is loaded on board, at which time he also transfers the risks, as well as the export clearance and expenses at origin. It is also in charge of contracting the transport, although this is paid by the buyer.
The buyer is responsible for the costs of freight, unloading, import procedures and delivery at destination, as well as insurance if he wants to hire it. The transfer of risks takes place when the merchandise is on board.
This incoterm is only used for maritime transport and should not be used for containerized goods since the responsibility is transferred when the goods are loaded on board the ship (the goods are physically touching the floor of the ship), but the containers are not loaded on board. When they arrive at the terminal, therefore, if the merchandise suffered any damage while it is in the container, it would be very difficult to establish when it happened.
CFR
Cost and Freight
The seller is responsible for all costs until the merchandise reaches the port of destination, including export clearance, expenses at origin, freight and generally unloading expenses.
The buyer deals with the import formalities and transport to the destination. It also assumes the risk at the time the merchandise is on board, so although it is not mandatory, it usually takes out insurance.
This incoterm is only used in maritime transport.
CIF
Cost, Insurance and Freight
The seller assumes, as in CFR, all the expenses until arrival at the port of destination, including export clearance, expenses at origin, freight and generally unloading, but in addition, he must originally contract insurance, although the risk is transferred to the buyer once the merchandise is loaded to board.
The buyer is the one who assumes the costs of import and transport to destination.
The novelty of this incoterm in the 2020 version refers to the insurance coverage that the seller must contract, noting that they must be the same as those provided by Clauses C of the Institute Cargo Clauses, that is, the insurance must cover until arrival at port. of destiny. It is an incoterm that is only used for maritime transport. It is a widely used incoterm as it determines the customs value.