Incoterms

International Commercial Terms – Are a series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

A confusion with this terms, can cause the loss of a sale or produce a financial lose in it. For so, is important to determine with terms will use before the end of the contract.

INCOTERMS
EXW
EXWORKS
Free in plant
  Free in plant. It means the seller acomplished his obligation of delivery of the merchandise in their plant.

At the disposal of the buyer.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
BUYER OBLIGATIONS  
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents.
  • FREIGHT 
    From place of export to place of import.
  • INSURANCE
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM
    License, permissions, requirements, taxes.
  • TRANSPORTATION AND INSURANCE
    Place from import to plant.
  • DELAYS
  • PAYMENT OF MERCHANDISE
FCA
FREE CARRIER
  The seller has accomplished his obligation of delivery when it has put the merchandise completed from custom for the export in charge of the transporter named by the buyer in the approved place.*
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents.
BUYER OBLIGATIONS  
  • FREIGHT 
    From place of export to place of import.
  • INSURANCE
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM
    License, permissions, requirements, taxes.
  • TRANSPORTATION AND INSURANCE 
    Place from import to plant
  • DELAYS
  • PAYMENT OF MERCHANDISE

* In Air traffic and in agreement to the valoration code in Mexico this point is equivalent to FOB

CPT
CARRIAGE PAID TO
  The seller releases the goods for its export, delivery to the transport and pays the freight to the final destination.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents.
BUYER OBLIGATIONS  
  • PAYMENT 
    Payment of the goods as agreed in the sales contract.
  • INSURANCE
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • TRANSPORTATION AND INSURANCE 
    Place from import to plant.
  • DELAYS
  • PAYMENT OF MERCHANDISE
CIP
CARRIAGE AND INSURANCE PAID TO
  The seller releases the goods for its export, delivery to the transport and pays the freight to the final destination.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents.
  • Freight and Insurance 
    Contracts and pay the freight and insurance to the final destination.
BUYER OBLIGATIONS  
  • PAYMENT
    Payment of the goods as agreed in the sales contract.
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • TRANSPORTATION AND INSURANCE 
    Place from import to plant
  • DELAYS
  • PAYMENT OF MERCHANDISE
DAT
DELIVERED AT TERMINAL
  The seller deliver in a terminal of charge of the country of final destination.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes
  • EXPORT EXPENSES  
    Maneuvres, storage, custom agents.
  • FREIGHT
    FROM THE EXPORT PLACE TO IMPORT PLACE.
BUYER OBLIGATIONS  
  • INSURANCE
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • ACARREO Y SEGURO 
    Lugar de importación a planta
  • DELAYS
  • PAYMENT OF MERCHANDISE
DAP
DELIVERED AT POINT
  The seller delivers the goods, without coming out, in the place of destination reminded in the country of the buyer.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents
  • FREIGHT
    FROM THE EXPORT PLACE TO IMPORT PLACE.
  • INSURANCE
    NOT OBLIGATED
  • TRANSPORTATION AND INSURANCE 
    FROM IMPORT PLACE TO PLANT.
BUYER OBLIGATIONS  
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • DELAYS
  • PAYMENT OF MERCHANDISE
DDP
DELIVERED DUTY PAID
  The seller delivers the goods in the place of designated destination, besides the payment of the liberation of import, duties and other costs that must be covered to matter.
SELLERS OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES   
    Maneuvres, storage, custom agents
  • FREIGHT
    FROM THE EXPORT PLACE TO IMPORT PLACE.
  • INSURANCE
    NOT OBLIGATED.
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • TRANSPORTATION AND INSURANCE  
    FROM IMPORT PLACE TO PLANT
BUYERS OBLIGATIONS  
  • DELAYS
  • PAYMENT OF MERCHANDISE
FAS
FREE ALONGSIDE SHIP
  The seller delivers the goods to side of nose of the port of sending, besides the customs step of export.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES 
    Maneuvres, storage, custom agents.
BUYERS OBLIGATIONS  
  • FREIGHT AND INSURANCE 
    From the port of exit to destination, insurance not obligated.
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • DELAYS
  • TRANSPORTATION
    FROM IMPORT PLACE TO PLANT.
  • PAYMENT OF MERCHANDISE
FOB
FREE ON BOARD
  The seller delivers the goods free for the export on board of the ship and does not cover with risks and costs after this.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS.
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES   
    Maneuvres, storage, custom agents.
BUYERS OBLIGATIONS  
  • FREIGHT AND INSURANCE 
    From the port of exit to destination, insurance not obligated.
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • DELAYS
  • >
  • TRANSPORTATION
    FROM IMPORT PLACE TO PLANT
  • PAYMENT OF MERCHANDISE
CFR
COST AND FREIGHT
  The seller pay and contract the transport to the port of destination, once sent it does not cover the additional cost.

** Only for ocean shipping.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes
  • EXPORT EXPENSES   
    Maneuvres, storage, custom agents
  • FREIGHT
    FROM THE EXPORT PLACE TO IMPORT PLACE
  • INSURANCE
    NOT OBLIGATED
BUYERS OBLIGATIONS  
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • TRANSPORTATION
    FROM IMPORT PLACE TO PLANT
  • DELAYS
  • PAYMENT OF MERCHANDISE
CIF
COST INSURANCE AND FREIGHT
  The seller pay and contract the transport and the insurance to the port of destination, once sent it does not cover the additional cost.

** Only for ocean shipping.
SELLER OBLIGATIONS  
  • MERCHANDISE, INVOICE AND NECESARY DOCUMENTS
  • PACKING
  • TRANSPORTATION
    From factory to place of exportation.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • EXPORT EXPENSES   
    Maneuvres, storage, custom agents
  • FREIGHT
    FROM THE EXPORT PLACE TO IMPORT PLACE
  • INSURANCE
    To The port of designated destination
BUYERS OBLIGATIONS  
  • EXPENSES OF IMPORT  
    Maneuvres, storage, custom agents.
  • CUSTOM 
    License, permissions, requirements, taxes.
  • TRANSPORTATION
    FROM IMPORT PLACE TO PLANT
  • DELAYS
  • PAYMENT OF MERCHANDISE