Incoterms 2000 the responsibilities of seller and buyer in international trade.

Incoterms 2000  the responsibilities of seller and buyer in international trade. The full and authoritative defination of each trade term is published in Incoterms 2000. Incoterms 2000 are to provide a set of rules to interpret the most commonly used trade terms in international trades.

The purpose of these terms are to clarify who are responsible (seller or buyer) for:
1. The cost of transporting the goods from one point to the other.
2. The risk of loss if the transportation cannot take place.
3.The risk of loss or damage to goods in transit.
There are:

  • EXW EX WORKS. At a named point of origin (e.g., ex factory, ex mill, ex warehouse)where the price quoted applies only at the point of origin. The seller agrees to place the goods at the buyer’s disposal at the specified place within the fixed time period. All other charges are put on the buyer’s account.
  • FCA FREE CARRIER. At a named place. This term replaces the former “FOB named inland port” to designate the seller’s responsibility for handing over the goods to a named carrier at the named shipping point. It may also be used for multimodal transport, container stations, or any mode of transport, including air.
  • FOB FREE ON BOARD. At a named port of export where the seller quotes the buyer a price that covers all costs up to and including the loading of goods aboard a vessel.
  • CPT CARRIAGE PAID TO
  • CFR COST AND FREIGHT. To a named overseas port where the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The the buyer covers the cost of insurance. (Used only for ocean shipments.)
  • DES DELIVERED EX SHIP
  • DEQ DELIVERED EX QUAY
  • DDP DELIVERED DUTY PAID
  • FAS FREE ALONGSIDE SHIP. At a named port of export where the seller quotes a price for the goods that includes the charge for delivery of the goods alongside a vessel at the port. The seller handles the cost of wharfage, while the buyer is accountable for the costs of loading, ocean transportation, and insurance.
  • DAF DELIVERED AT FRONTIER
  • DDU DELIVERED DUTY UNPAID
  • CIF COST, INSURANCE AND FREIGHT.  To a named overseas port where the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation from the vessel. (Used only for ocean shipments.

Incoterms 2000 – Chart of Responsibility

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