fca at Insurance Online

So, and there are the descriptions of these INCOTERMS (these descriptions provide the most important information about each term, they are not fun definitions):

Group E (Departure)

EXW    - Ex Works - means that the seller’s only responsibility is to make the goods available at his or her premises. The buyer bears the full cost and risk involved in transporting the goods to their destination.
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Group F (Main carriage paid by the buyer)

1) FCA - Free Carrier (named place) - mean that the seller fulfils his or her obligation when the goods (cleared for export) are handed over to the carrier named by the purchaser. In the case of rail or road transport, delivery is completed when the goods have been loaded. For sea transport, delivery is complete when the seller has taken the goods to the transport terminal.

2) FAS - Free Alongside Ship (named port of shipment) - means that the seller’s obligations are fulfilled when the goods have been placed alongside the ship on the quay. The buyer is liable for all costs and risks of damage from that moment. Unlike Free 0n Board this term requires the buyer to clear the goods for export. The buyer is responsible for obtaining any export or import license.

3) FOB - Free On Board (named port of shipment). The goods are loaded on board by the seller at a port named in the contract. The risk of loss or damage passes to the buyer when the goods pass the ship’s rail. The buyer is responsible for the transport costs from this port to the destination. However, it is the seller who has to obtain any export license or documentation necessary for the goods to leave the country. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the FCA term.
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Group C (Main carriage paid by the seller)

1) CFR - Cost and Freight - this term can only be used for sea and inland waterway transport. The seller must pay for the transport used to bring the goods to the named port but is not liable for risks from the moment the goods pass the ship’s rail in the port of shipment. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it’s better to use the CPT term.

2) CIF - Cost, Insurance and Freight - is the same as CFR except that the seller has to arrange and pay for marine insurance for any risks during transit to the named port of destination.
In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the CIP terms.

3) CPT - Carriage Paid To - (named place of destination) means that the seller pays for transport to the destination. The risks and costs are then transferred to the buyer when the goods have been given to the carrier. This term is suitable for any kind of transport including multimodal transport.

4) CIP - Carriage and Insurance Paid To (named place of destination) - is the same as CPT but the seller also pays for insurance during carriage.
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Group D (Arrival)

1) DAF - Delivered at Frontier    - means that the seller’s obligations are fulfilled when the goods have arrived at the frontier. It is recommended that contracts should specify which frontier, e.g. “Delivered at Franco-Italian frontier (Modane)”. This term is most often used for rail or road transport but can apply to any mode.

2) DES - Delivered Ex Ship (named port of destination) - can only be used for sea or inland waterway transport. The seller makes the goods (uncleared for importation) available to the buyer on board ship and bears all the costs and risks involved in bringing the goods to the port of destination.

3) DEQ - Delivered Ex Quay - is the same as DES but the seller is also responsible for unloading the cleared goods onto the quay or wharf. The contract should make it clear whether or not the seller pays duty, VAT, etc.

4) DDU - Delivered Duty Unpaid - means that the seller’s obligations cease when the goods are made available to the buyer at a named place in the country of destination. The seller pays for customs formalities but not for customs duty. The term can be used for any mode of transport.

5) The term DDP - Delivered Duty Paid - represents the seller’s maximum obligation. All expenses are incurred by the seller until they arrive at destination. The term may be used for any mode of transport but is unsuitable if the seller cannot obtain an import license.

<:3  )~~~~~~
Yours sincerely,
AlexSandra

INCOTERMS are set of international rules published by the International Chamber of Commerce, Paris, for the interpretation of the most commonly used terms in foreign trade.
The aim is to avoid disagreements resulting from differences in trading practices in various countries by describing clearly the duties of the seller and the buyer. INCOTERMS also regulate responsibility in different insured accidents - that is the most important thing for us!

The terms are grouped in four separate categories:

— E term — the seller makes the goods available to the buyer at the seller’s premises and that is all.

— F terms — the seller has to deliver the goods to a carrier appointed by the buyer.

— C terms — the seller pays for carriage, but does not accept liability for loss or damage after shipment and dispatch.

— D terms — the seller bears all costs and risks in shipping goods to the country of destination.

And now I would like to tell you about these groups in more details.

Group E (Departure)

EXW    - Ex Works
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Group F (Main carriage paid by the buyer)

FCA - Free Carrier
FAS - Free Alongside Ship
FOB - Free On Board
FOR - Free On Rail
FOT - Free On Truck
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Group C (Main carriage paid by the seller)

CFR - Cost and Freight
CIF - Cost, Insurance and Freight
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid To
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Group D (Arrival)   

DAF - Delivered at Frontier
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Unpaid
DDP - Delivered Duty Paid
DCP - Delivered Carriage Paid

<:3  )~~~~~~
Yours sincerely,
AlexSandra

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