There are eleven Incoterms (International Commercial Terms) 2020 rules that define the obligations of buyers and sellers for the delivery of goods. Here is a summary of each of the Incoterms 2020 rules:
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EXW (Ex Works) - The seller only has to make the goods available at their premises. The buyer is responsible for arranging and paying for transportation.
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FCA (Free Carrier) - The seller delivers the goods to the carrier or another nominated person at a named place. The buyer is responsible for arranging and paying for transportation.
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FAS (Free Alongside Ship) - The seller delivers the goods alongside the vessel at a named port. The buyer is responsible for arranging and paying for transportation.
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FOB (Free On Board) - The seller delivers the goods on board the vessel at a named port. The buyer is responsible for arranging and paying for transportation.
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CFR (Cost and Freight) - The seller is responsible for delivering the goods on board the vessel at a named port and for paying the cost of transportation to the named destination.
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CIF (Cost, Insurance, and Freight) - The seller is responsible for delivering the goods on board the vessel at a named port, paying the cost of transportation to the named destination, and providing minimum insurance coverage.
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CPT (Carriage Paid To) - The seller is responsible for delivering the goods to a named place and paying the cost of transportation to the named destination.
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CIP (Carriage and Insurance Paid To) - The seller is responsible for delivering the goods to a named place, paying the cost of transportation to the named destination, and providing minimum insurance coverage.
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DAP (Delivered At Place) - The seller is responsible for delivering the goods to a named place, and the buyer is responsible for unloading the goods.
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DPU (Delivered at Place Unloaded) - The seller is responsible for delivering the goods to a named place and unloading them. The buyer is responsible for taking possession of the goods once they are unloaded at the named place of destination.
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DDP (Delivered Duty Paid) - The seller is responsible for delivering the goods to a named place, paying all transportation and insurance costs, and assuming all risks and liabilities until the goods are ready for unloading at the named place.