Know Your EXIM and INCO terms:

Incoterms are a collection of rules, that are used to make shipping contracts and trade agreements between parties across the world. Incoterms clearly identify the responsibilities of each party, during every stage of the shipping process. Responsibilities can include costs, risks, who handles transport, etc.

• EXW – Ex Works
• FCA – Free Carrier
• CPT – Carriage Paid To
• CIP – Carriage and Insurance Paid To
• DAP – Delivered at Place
• DPU – Delivered at Place Unloaded
• DDP – Delivered Duty Paid

EXW – Ex Works:

In EXW, the seller keeps the products ready at a location, where the buyer can pick it from.

FCA – Free Carrier:

In Free Carrier, the seller is responsible for all the responsibilities till the buyer buys the goods, therefore the buyer is chargeable for destination.

CPT – Carriage Paid to:

It is a global commercial term wherein the seller bares the risks and costs related to delivering goods, to an agreed-upon location.

CIP – Carriage and Insurance Paid To:

It is when a seller pays for logistics and insurance to deliver goods to a seller-appointed party.

DAP – Delivered at Place:

In this the seller is chargeable for both delivery of the products, and is responsible for unloading the goods at any desired place of the buyer.

DPU – Delivered at Place Unloaded:

It requires the seller to transport the goods to the seller, even if the buyer fails to collects the goods from the decided place.

DDP – Delivered Duty Paid:

In this, the seller must pay export and import formalities, fees, duties, and taxes.