All you need to know

about Incoterms®

All you need to know
about Incoterms®

All you need to know

about Incoterms®

Definitions :

In order to best support you in your international development, Sotecan International provides you with definitions of various Incoterms® :

EXW (Ex Works) :

  • The seller makes the goods available at their premises or another agreed location. However, the seller is not responsible for transportation costs or risks associated with shipping the goods to the final destination. All costs, risks, and responsibilities transfer to the buyer once the goods are made available.

FCA (Free Carrier) :

  • The seller delivers the goods, cleared for export, to a designated carrier at the agreed-upon location. The risk shifts from the seller to the buyer as soon as the goods are handed over to the carrier.

FAS (Free Alongside Ship) 

  • The seller delivers the goods dockside, cleared for export but not loaded onto the ship. The buyer takes on costs and risks once the goods are placed alongside the ship at the port of shipment.

CFR (Cost and FReight) :

  • The seller delivers the goods on board the ship, cleared for export, and pays the necessary freight to reach the destination port. The risk significantly transfers to the buyer once the goods are on board the ship.

CFI (Cost, Insurance, and Freight)

  • Similar to CFR, but the seller also includes marine insurance to cover risks during transportation. The buyer bears costs and risks once the goods are on board the ship.

DAP (Delivered at Place)

  • The seller delivers the goods, cleared for import, to the agreed-upon destination. The seller assumes all risks and costs related to international transport until the goods are ready to be unloaded at the destination.

DPU (Delivered at Place Unloaded)

  • The seller delivers the goods unloaded at the agreed-upon destination. All risks and costs associated with international transport are borne by the seller until the goods are delivered unloaded.

DDP (Delivered Duty Paid)

  • The seller is responsible for delivering the goods to the destination, unloaded, and pays all customs duties and taxes. The buyer takes over the goods once they are ready to be unloaded.

FOB (Free On Board)

  • The seller is responsible for delivering the goods on board the ship at the port of shipment. Once the goods are on board the ship, risks and costs transfer to the buyer.

These detailed Incoterms® definitions provide a deeper understanding of the responsibilities, risks, and costs associated wich each term. It is essential to select the appropriate Incoterm® based on the specific needs of the transaction and clearly indicate it in the commercial contract to avoid any confusion.

Summary table of Incoterms® :

If you are unsure about which Incoterm® to use, do not hesitate to contact us :  +33 (0)2 32 74 67 28 – info@sotecan.com. We will do our best to provide you with a tailor-made answer.

The Coué TRM Group organises you entire distribution chain :