The aim of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in international trade. Thus, uncertainties due to different interpretations of such terms in different countries can be avoided – or at least considerably reduced.
The seller takes care of the delivery of goods by making them available for pick-up in his premises or in other agreed place (plant, factory, warehouse, etc.) not cleared for export and not loaded on the vehicle chosen for pick-up.
The seller is responsible of delivering goods alongside the ship in the agreed shipping harbor. The buyer is responsible for any cost and risk of loss or damages to goods from that moment on. The seller has also responsibility for export clearance.
The seller delivers goods on board a vessel in the harbor agreed. The buyer is responsible for costs and risks of loss and damages to goods from that moment on. The seller is responsible for export clearance of goods.
The seller meets all the costs of goods transport to the agreed shipping harbor. The seller has to meets all costs for the transport of goods to the port of destination agreed, but from the moment of delivery all risks of loss or damages to goods – as well as all extra charges due to events occurred after delivery – are transferred from the seller to the buyer. The seller is responsible for export clearance of goods.
The seller delivers goods on board a vessel in the shipping port. The seller meets all the costs for the transport of goods to the port of destination agreed, but from the moment of delivery all risks of loss or damages to goods – as well as all extra charges due to events occurred after delivery – are transferred from the seller to the buyer. The seller also has to provide the buyer with a marine insurance for risks of loss or damage of goods during shipment. So the seller takes out an insurance policy and pays the premium. The buyer must be aware that, as stated in Incoterm, the seller is bound to provide just a minimum insurance coverage. Thus, if the buyer looks for a more complete insurance coverage, he will have to reach an agreement with the seller, or he will have to meet the costs of an integration to the coverage. The seller is responsible for goods export clearance.
The seller is responsible for delivering the goods, and making them available to the buyer – not cleared for import, and not unloaded from any arriving means of transport at the named place of destination – except for all “customs duties” (term including the expenses and the risks of the carrying out of customs formalities, and the payment of customs duties, taxes and other charges) for import – where needed – in the country of destination. The buyer is responsible for such “customs duties”, as well as for costs and risks due to an eventual delay in the custom clearance of goods.
The seller delivers the goods to the buyer, cleared for import, and not unloaded from the means of transport at the agreed place of destination. The seller meets the costs and risks related to the transport of goods thereto, including all “customs duties” (term including the expenses and the risks of the carrying out of customs formalities, and the payment of customs duties, taxes and other charges) for import – where needed – in the country of destination. While according to EXW the seller undertakes the minimum level of obligations, under DDP he undertakes the maximum level.