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Incoterms

Incoterms

COMMERCIAL TERMS

How It Works

Ex Works (named place)

  • Deliver the goods at these premises.
  • Take delivery of the goods at seller’s premises.
  • Make all arrangements at his own cost and risk to bring the goods to their destination.

FCA-Free Carrier (named place)

  • Deliver the goods at the named point into the custody of the carrier named by the buyer.
  • Provide export clearance ( export license ,pay export taxes and fees, if required).
  • Provide evidence of delivery of the goods to the carrier.
  • Nominate carrier.
  • Contract for the carriage and pay the freight.

FOB-Free on Board (named port of shipment)

  • Deliver the goods on board.
  • Provide export clearance (export license, pay export and fees if required).
  • Provide a clean on-board receipt.
  • Pay loading costs according to the custom of the port to the extent then they are not included in the freight.
  • Nominate carrier.
  • Contract for the carriage and pay the freight.
  • Pay loading costs to the extent that they are included in the freight.
  • Pay unloading costs.

CIF – Cost, INSURANCE & Freight (named port of destination)

  • Contract for the carriage and pay the freight to the named port of destination.
  • Deliver the goods on board.
  • Provide export clearance (export license, pay export taxes and fees, if required) Contract for the insurance of the goods during the carriage and pay the insurance premium.
  • Furnish the buyer with the invoice, a clean transport document and cargo insurance policy certificate.
  • Pay loading cost.
  • Pay unloading costs to the extent that they are included in the freight.
  • Accept delivery of the goods upon shipment when the invoice the cargo insurance coverage and the transport document are tendered to him , and receive the goods from the named port of destination.
  • Pay unloading costs to the extent that they are not included in the freight .

CPT – Carriage Paid To (named place of destination)

  • Contract for the carriage and pay the freight to the named place of destination.
  • Deliver the goods into the custody of the first carrier.
  • Provide export clearance (export license, pay export taxes and fees, if required).
  • Furnish the buyer with the invoice, the usual transport document.
  • Accept delivery of the goods when they are delivered to the first carrier and when the invoice and, if customary, the usual transport document are tendered to him, and receive the goods from the carrier at the named place of destination.

CIP – Carriage & Insurance Paid To (named place of destination)

  • Contract for the carriage and pay the freight to named place of destination.
  • Deliver the goods into the custody of first carrier.
  • Provide export clearance (export license, pay export taxes).
  • Contract for the insurance of the goods during the carriage and pay the insurance premium.
  • Furnish the buyer with the invoice, the usual transport document and the cargo insurance policy or other evidence of insurance coverage.
  • Accept delivery of the goods when they are delivered to the first carrier and when the invoice policy or other evidence of insurance coverage, and, if customary, the usual transport document are tendered to him, and receive the goods from the carrier at named place of destination.

DDP – Delivered Duty Paid (named place of destination)

  • Deliver the goods at the named place of destination.
  • Provide import clearance (import license, pay import duties, taxes and fees, if required).
  • Provide documents to enable buyer to take delivery at the named place.
  • Take delivery of the goods at the named place of destination.
Conversion Factors

TO CONVERT

TO

MULTIPLY BY

Feet

Meters

0.3048

Inches

Centimeters

2.54

Inches

Meters

0.0254

Meters

Feet

3.201

Meters

Inches

39.37

Long Tons

Metric Tons

1.016

Metric Tons

Long Tons

0.984

Apply the following factors when converting from and to the Metric System

TO CONVERT

TO

MULTIPLY BY

Cubic Feet

Cubic Meters

0.028317

Cubic Meters

Cubic Feet

35.3145

Short Tons

Metric Tons

0.9072

Metric Tons

Short Tons

1.102

Pounds

Kilograms

0.4536

Kilograms

Pounds

2.2046

Centimeters

Inches

0.3937

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