Inco Terms

Shipping Incoterms Guideline 2020 when importing exporting China


The industry terminology of Sea freight, Air Freight, Rail Freight, Road Freight  can be easy to get confused for newbie.     


   

What is INCO TERMS?

   

What is the role INCO TERMS?
     

What are INCO TERMS?     


INCO TERM applicable to all modes of transportation?    


   

     


 What is INCO TERMS?   

"Incoterms" is short for International Commercial Terms. INCO terms first appeared in 1936. This is a set of 11 rules to define the scope of responsibility of each party in international transactions.  



 What is the role INCO TERMS?  

International trade terms list in detail all the work, risks and costs involved in the transaction of goods  the seller to the buyer. 

In addition, each INCO term has been recognized around the worldwide. For Each commercial invoice needs to be processed according to the requirements of its shipment, thereby greatly reducing the potential high cost risk arising  misunderstandings.


 What are INCO TERMS?

Are all INCO TERM applicable to all modes of transportation?



INCO TERMS is divided into 4 categories : E, F, C, D

" E " terms

EXW - Ex Works (The usual place of delivery is the seller's location)

" F " terms   

FCA - Free Carrier (Place of Delivery)   

FAS - Free Alongside Ship (Port of Shipment)   

FOB - Free On Board (Port of Shipment)  



" C " terms

CFR - Cost and Freight (Port of Destination)

CIF - Cost, Insurance and Freight (Port of Destination)

CPT - Carriage Paid To (Place of Destination)

CIP - Carriage and Insurance Paid To (Place of Destination)



" D " terms

DAT - Delivered At Terminal (Terminal at Port or Place of Destination)

DAP - Delivered At Place (Place of Destination)

DDP - Delivered Duty Paid (Place of Destination)



If you do not notice the changes when using the terms of use, to avoid disputes, we suggest that you can always go to the ICC Digital Library to find out.



**INCO TERMS : FOB, FAS, CFR, CIF are used for Sea Freight only. Air Freight, Rail Freight, Road Freight are not applicable






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