INCOTERMS FORMULAS Flashcards
EXW (Ex-Works)
EXW = COST OF GOODS
FCA (Free Carrier)
FCA = EXW + ORIGIN O/C
CPT (Carriage Paid To)
CPT = FCA + FRT
CIP (Carriage and Insurance Paid To)
CIP = FCA + FRT + INS
DAP (Delivered At Place)
DAP = CFR + DESTINATION O/C
DDP (Delivered Duty Paid)
DDP = CFR + DESTINATION O/C
FAS (Free Alongside Ship)
FAS = EXW + ORIGIN O/C
FOB (Free On Board)
FOB = EXW + ORIGIN O/C
CFR (Cost and Freight)
CFR = FOB + FRT
CIF (Cost, Insurance and Freight)
CIF = FOB + FRT + INS
Most complete incoterm where delivery is made by the seller to the named place of destination ready for unloading at buyer’s expense and risk. Also known as maximum risk for the seller.
DDP or Delivered Duty Paid
Incoterm in which seller’s only obligation is to make the goods available in his premise or any place other than his premise.
Maximum risk for buyer less for seller.
(Named place of delivery) - O
EXW or Ex Works
Incoterm in which seller makes the goods available in its premise or other than seller’s premises and is responsible for loading goods to the means of transport arranged by the buyer. The unloading is on the buyer’s account.
(Named place of delivery) - O
FCA or Free Carrier
Incoterm in which delivery occurs when the seller handed the goods to the carrier.
(Named place of destination) - D
CPT or Carriage Paid To
Incoterms in which seller’s obligation is to deliver the goods by handing them to the carrier and make the goods clear for export and insure the goods to the point of delivery or destination.
(Named place of destination) - D
CIP or Carriage and Insurance Paid To
Incoterms in which the buyer’s responsibility is to prepare import clearance and unload the goods delivered by the buyer at the named place agreed upon.
(Named place of destination) - D
DAP or Delivered at Place
Incoterms in which seller’s responsibility is to place the goods at buyer’s disposal unloaded. The seller bears all the risks involved in bringing the goods and unloading them at the named place of destination.
(Named place of destination) - D
DPU or Delivered at Place Unloaded
Incoterms in which the seller bears all the risks involved in bringing the goods to the named place of destination or to the agreed point within that place.
Maximum risk for the seller. Also known as door-to-door contract.
(Named place of destination) - D
DDP or Delivered Duty Paid
Incoterms in which the risk of loss or damage to the goods passes once the goods are placed alongside the ship. The buyer shall bear all costs from that point.
(Named place of delivery) - O
FAS or Free Alongside Ship
Incoterms in which the risk of loss or damage to the goods passes once the goods are placed on board the vessel. The buyer shall bear all costs from that point.
(Named place of delivery) - O
FOB or Free On Board
Incoterms in which the risk of loss or damage to the goods passes once the goods are placed on board the vessel. The buyer shall bear all costs from that point. The buyer will be the one to purchase insurance for itself.
(Named port of destination) - D
CFR or Cost and Freight
Incoterms in which the risk of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods, whether or not the goods actually arrived at their destination in sound condition, in the stated quantity or indeed, at all.
(Named port of destination) - D
CIF - Cost, Insurance and Freight
DPU (Delivered At Place Unloaded)
DPU = CFR + Destination O/C
