International Trade Terms
In the context of international trade is important to know the terms, regulations, specifications and main cargo customs that can make the difference in hiring a freight service both cost efficiency and transit times.
Incoterms means International Commerce Terms (International Commercial Terms) are issued by the convention on contracts for the international sale of goods. International applications are in Mexico which was part Conventions. The goal of the Incoterms is to provide international rules for the interpretation of trade terms used more in foreign trade, so as to prevent misunderstandings that cause different interpretations.
| SERVICES | EXW All |
FCA All |
FAS Sea |
FOB Sea |
CFR Sea |
CIF Sea |
CPT All |
CIP All |
DAT All |
DAP All |
DDP All |
| Packing | B | S | S | S | S | S | S | S | S | S | S |
| Loading Charges | B | S | S | S | S | S | S | S | S | S | S |
| Inland Freight | B | S | S | S | S | S | S | S | S | S | S |
| Terminal Charges | B | B | S | S | S | S | S | S | S | S | S |
| Insurances | B | B | B | B | B | S | B | S | S | S | S |
| Custom Services | B | S | S | S | S | S | S | S | S | S | S |
| Loading on Vessel | B | B | B | S | S | S | S | S | S | S | S |
| Freight | B | B | B | B | S | S | S | S | S | S | S |
| Arrival Charges | B | B | B | B | B | B | S | S | S | S | S |
| Duty & Taxes | B | B | B | B | B | B | B | B | B | B | S |
| Delivery to | B | B | B | B | B | B | B | B | B | S | S |
| ABBREVIATION: ( B ) It will be paid by the buyer / ( S ) Will be paid by the seller. | |||||||||||
| INCOTERM | Description | |
| EXW | Ex Works | (S) delivers the goods on his premises being made available to (B) without charge in the transport medium. |
| FCA | Free carrier named place | (S) delivers the goods to the carrier at the agreed place and loaded on the means of transport. |
| FAS | Free alongside ship | (S) delivers the goods to (B) or its carrier at the pier alongside the ship. |
| FOB | Free on board | (S) delivers the goods on board. |
| CFR | Cost & Freight | (S) delivers the goods on boar. Additionally has to pay the cost of freight. |
| CIF | Cost, Insurance & Freight | (S) delivers the goods on board of the ship. Also (S) has to pay the cost of freight and transport insurance with minimum coverage. If (B) wants higher insurance coverage this has to be agreed on. |
| CTP | Carriage Paid To | (S) delivers the goods to (B) when he hands the cargo over to the carrier. Also (S) has to pay the cost of freight. |
| CIP | Carriage and insurance paid to | (S) delivers the goods to (B) when he hands the cargo over to the carrier. Additionally (S) has to pay the cost of freight and transport insurance with minimum coverage. If (B) wants higher insurance coverage this has to be agreed on. |
| DAT | Delivered at Terminal | (S) delivers the goods being made available to (B) once unloaded to the designated terminal. |
| DAP | Delivered at place | (S) delivers the goods making them available for (B) at the means of transportation of arrival ready for unloading at the destination named. |
| DDP | Delivered duty paid | (S) delivers the goods making them available for (B) at the designated point without unloading and duly cleared for import having paid all costs. |