Are also referred to as Terms of Sale and are standardized trade
definitions.
Most commonly used in international contracts, thus reflected on
the sales invoice.
Ensure buyers and sellers understand each other's expectations and
responsibilities.
Were created by the ICC (International Chamber of Commerce, and
are protected by ICC copyright.
Are reviewed every 10 years and regularly updated to keep pace
with the ever-changing world of international trade. Latest
edition is the inco-terms 2000.
The Incoterm utilized in a transaction will dictate which party is
responsible for each transportation segment and it's corresponding
contract of carriage. The Incoterm that is utilized can affect the
title passage in foreign trade.
As a general rule, Pre-Carriage, Main-Carriage and On-Carriage
should be utilized in connection with the inco-terms.
Pre-Carriage: the transportation segment from the seller's
location to the point where the cargo would leave from the
seller's side. Example, to arrange for pre-carriage, you
would contract with an inland carrier to make delivery to a port
or airport.
Main-Carriage: the transportation segment from the seller's side
to the buyer's side. Example, to arrange for main-carriage, you
would contract for ocean or air carriage.
On-Carriage: the transportation segment from the point of arrival
(on the buyer's side), to the designated ultimate
receiver. Example, to arrange for on-carriage, you would
contract with an inland carrier to make delivery from the
port/airport of arrival to the ultimate receiver.;
EXW – Ex Works (named place)
FCA – Free Carrier (named place)
FAS – Free Alongside Ship (named place)
FOB – Free On Board (named port of shipment)
CFR – Cost and Freight (named port of destination)
CIF – Cost, Insurance and Freight (named port of destination)
CPT – Carriage Paid To (named place of destination) CIP – Carriage
and Insurance Paid To (named place of destination)
DAF – Delivered at Frontier (named place)
DES – Delivered Ex Ship (named port of destination)
DEQ – Delivered Ex Quay (named port of destination)
DDU – Delivered Duty Unpaid (named place of destination)
DDP – Delivered Duty Paid (named place of destination)
“E” term: seller's obligation (& control of shipment) is at
its minimum
“F” terms: require the seller to deliver the goods for carriage as
instructed by the buyer
“C” terms: require the seller to contract carriage on usual terms
at his own expense
“D” terms: seller's obligation & control at its maximum
The seller's obligation is fulfilled when the buyer has been
notified, and the goods (suitably packed for export) are available
to the buyer, at the named place within the time specified.
The buyer is responsible for all costs and risks, including the
loading of the goods from the named/specified point.
The buyer is responsible to arrange the entire contract of
carriage of the goods (pre-carriage, main-carriage,
on-carriage).
The buyer is responsible for the export clearance of the goods.
This term should not be used when the buyer cannot carrier out the
export formalities directly or indirectly.
The buyer is responsible for the import clearance of the goods.
Seller's obligation ends when they delivers the goods, cleared for
export, to the carrier (any mode of transport) nominated by the
buyer at the named place.
The buyer must contract at his own expense the carriage of the
goods from the named place.
However, if it is requested by the buyer or if it is commercial
practice and they buyer does not give instructions to the contrary
in due time, the seller may contract for carriage at the buyer's
risk and expense.
Buyer must clear the goods for import.
Seller's obligation and risk to deliver the goods alongside the
vessel at the named port of shipment.
Seller must clear the goods for export.
Term used for sea or inland waterway transport only.
Buyer is responsible for all costs and risks to transport the
goods to the destination once cargo is delivered alongside the
vessel.
Buyer bears all additional costs as a result of vessel delay or
refusal of goods for loading.
Buyer must clear the goods for import at final destination.
The seller's obligation is fulfilled when the buyer has been
notified and the goods have passed over the ship's rail on board
the vessel, at the named port. (technically, the seller would be
responsible for U.S. Terminal Handling when using this term, so if
the seller does not intend to deliver the goods across the ship's
rail, the FCA term should be used)
The buyer is responsible for all costs and risks associated with
the goods after they have passed over the ship's rail and loaded
on board the ship, at the named port.
The buyer is responsible to arrange for the carriage of the goods
from the named port of shipment (the main-carriage and
on-carriage).
The seller is required to arrange for the export clearance of the
goods.
The buyer is responsible to arrange for the import clearance of
the goods.
The seller's obligation is fulfilled when the goods are delivered
to a carrier, pass the ship's rail, and the contract of carriage
is arranged, freight prepaid, to the named port.
The buyer is responsible for all risks associated with the goods
after they have passed the ship's rail to be loaded on board the
vessel, as well as the costs and risks related to the goods
(receipt of the goods from the carrier) in the importing
country.
The seller is responsible to arrange for the pre-carriage and
main-carriage of the goods.
The seller is responsible for the export clearance of the
goods.
The buyer is responsible for the import clearance of the goods.
The seller's responsibility is fulfilled when the goods are
delivered to a carrier, pass the ship's rail, the contract of
carriage is arranged, freight prepaid, to the named port, and
insurance is obtained on the cargo.
The buyer is responsible for all risks associated with the goods
after they have passed the ship's rail to be loaded on board the
vessel, as well as the costs and risks related to the goods
(receipt of the goods from the carrier) in the importing
country.
The seller is responsible to arrange for the pre-carriage and
main-carriage of the goods.
The seller is responsible for the export clearance of the
goods.
The buyer is responsible for the import clearance of the goods.
The seller's responsibility is fulfilled when the goods are
delivered to a carrier, pass the ship's rail, the contract of
carriage is arranged, freight prepaid, to the named place of
destination.
The buyer is responsible for all risks associated with the goods
after they have been delivered to the named place of destination,
as well as the costs and risks related to the goods (receipt of
the goods from the carrier) in the importing country, including
insurance.
The seller is responsible to arrange for the pre-carriage and
main-carriage of the goods.
The seller is responsible for the export clearance of the
goods.
The buyer is responsible for the import clearance of the goods.
The seller's obligation is fulfilled when the goods are delivered
to a carrier, and the contract of carriage is arranged, freight
prepaid – the named place of destination, and insurance is
obtained on the cargo.
The buyer is responsible for all costs and risks associated with
the goods after receipt by the carrier – prior to loading on board
the vessel or aircraft, as well as the costs and risks related to
the goods (receipt of the goods from the carrier) upon arrival in
the importing country.
The seller is responsible to arrange for the pre-carriage and main
carriage of the goods.
The seller is responsible for the export clearance of the
goods.
The buyer is responsible for the import clearance of the goods.
The seller's obligation ends when they have delivered the goods to
the disposal of the buyer on the arriving means of transport not
unloaded, cleared for export, but not cleared for import and the
named point and place at the frontier but before the customs
border of the adjoining country.
The buyer is responsible for customs clearance, duties, taxes, and
delivery to final destination at the country of import.
When delivery is to take place in the port of destination, on
board a vessel, or on the quay (wharf), the DES or DEQ terms
should be used.
The seller's obligation ends when they have delivered the goods to
the disposal of the buyer on board the ship, cleared for export,
but not cleared for import but delivered the named port of
destination before discharging.
The buyer is responsible for customs clearance at the country of
import and all charges for discharging off the ship (Destination
Unloading, Terminal Handling and/or Container Service
Charges-CSC)
If the seller is also to be responsible for discharging the goods
off the ship, then the DEQ term should be used.
The seller's obligation ends when they have delivered the goods to
the disposal of the buyer on board the ship, cleared for export,
but not cleared for import but delivered the named port of
destination after discharging goods off the vessel at the quay
(wharf).
The buyer is responsible to clear the goods for import and pay for
all formalities, duties, taxes, and other charges upon import.
If the seller is also to be responsible for delivering the goods
past the quay to another place (warehouse, terminal, etc.) in our
outside the port, the DDU or DDP terms should be used.
The seller's obligation is fulfilled when the goods have been made
available to the buyer at the named place of destination –
uncleared for importation.
The buyer is responsible for all costs and risks associated with
the goods upon importation at the named place of destination.
The seller is required to arrange for the entire contract of
carriage (pre-carriage, main-carriage, on-carriage) to the named
place of destination.
The seller is required to arrange for the export clearance of the
goods.
The buyer is responsible for the import clearance of the goods,
including the payment of any applicaSble duties, taxes and fees.
The seller's obligation is fulfilled when the goods have been made
available to the buyer at the named place of destination – cleared
for importation.
The buyer is responsible to take delivery of the goods from the
named place of destination.
The seller is required to arrange for the entire contract of
carriage (pre-carriage, main-carriage, on-carriage) to the named
place of destination.
The seller is required to arrange for the export clearance of the
goods.
The seller is required to arrange for the import clearance of the
goods, including the payment of any applicable duties, taxes and
fees.
Any Mode: EXW, FCA, CPT, CIP, DAF, DDU, DDP Maritime and inland
waterways only: FAS, FOB, CFR, CIF, DES, DEQ Shapiro Mission
Statement It is the mission of Samuel Shapiro & Company, Inc.
to achieve, manage and deliver the highest quality of personalized
customer service in all facets of international/domestic
transportation and logistics. We will utilize the knowledge of our
skilled employees, our three generations of experience, our
expertise in compliance, and our cutting-edge technological tools,
individually tailored to our client's needs, to achieve this
goal.
We will maintain the ethical and professional standards
established by Samuel Shapiro in 1915, and strive to be a model
corporate citizen. We will continue to foster a culture of
excellence among our employees, always conscious of our
responsibilities to our clients, our Company philosophy, and the
communities in which we live.
Actual loading quantities subject to sample test. Further
information on request.
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