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INCOTERMS 2010

EXW
Cost and Freight
A practical guide to INCOTERMS 2010

North American Transportation | Incoterms 2010

INCOTERMS 2010

When negotiating an international sales contract, you need to pay as much attention to the terms of sale as to the sale price. Minimize confusion by using Incoterms 2010, the generally accepted series of international trade terms. Incoterms clarifythe responsibilities for delivery of goods between the seller and buyer. This includes the carriage of product, customs clearance and which party carries the risk for the condition of goods at specific times during the transport process. Incoterms are not implied, you must specifically include them in your contract. Further, your contract should clearly refer to the latest revision of Incoterms:Incoterms 2010.

Every effort has been made to ensure the accuracy of information presented in this article. However, Livingston accepts no responsibility for errors and omissions that may appear.

North American Transportation | Incoterms 2010 | p1

Incoterms are grouped into two classes:
Includes the terms EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage andInsurance Paid To), DAT (Delivered at Terminal), DAP (Delivered at Place), and DDP (Delivered Duty Paid)
2. RulES FOR SEA AND INlAND WATERWAyS ONly 1. RulES FOR ANy MODE OF TRANSpOT

Includes the terms FAS (Free Alongside Ship), FOB (Free on Board), CFR (Cost and Freight), and CIF (Cost Insurance and Freight)
ThIS guIDE IS DESIgNED TO pROvIDE A CONvENIENT REFERENCE FOR buyERS AND SEllERS RISkS ANDCOSTS AS DETAIlED uNDER EACh INCOTERM.

E

EXW Ex Works

Seller merely makes goods available at seller’s premises. Risk and payment of all costs from the seller’s door pass to the buyer.

(…named place)
buyER’S RESpONSIbIlITIES (SuMMARy)

• Licenses and Customs Paperwork – provide at the buyers request, risk and cost, assistance in securing licenses, documentation and authorizationsrequired to export and import the goods • Carriage – the seller has no obligation to provide carriage of goods • Costs – pay all costs until the goods have been made available to the buyer The Ex Works term is often used when making an initial quotation for the sale of goods. It represents the cost of the goods without any other costs included.

SEllER’S RESpONSIbIlITIES (SuMMARy)

• Licenses andCustoms Paperwork – obtain at own risk and costs all export and import licenses, duties, taxes, authorization and documentation • Risk Transfer – assumes all risks (loss or damage) from the time the goods have been made available at seller’s door • Costs – pay any costs from the time the goods have been made available; pay all costs resulting from failure to take delivery The buyer is responsibleto reimburse the seller for all costs associated with securing documentation originating in the country of origin or export.

Every effort has been made to ensure the accuracy of information presented in this article. However, Livingston accepts no responsibility for errors and omissions that may appear.

Tran North American Transportation | Incoterms 2010 | p2

F

FCA Free Carrier(…named place)

Seller is obligated to clear the goods for export and then hand them over to the carrier specified by the buyer at the named place.

SEllER’S RESpONSIbIlITIES (SuMMARy)

• Licenses and Customs Paperwork – seller obtains at own risk and cost all export duties, taxes and export formalities • Carriage – seller has no obligation to provide carriage once goods are handed over to thebuyer-appointed carrier • Delivery – delivery is considered complete when seller either loads the goods onto the vehicle provided, or delivers the goods to the buyer-appointed carrier’s terminal, on the sellers side not unloaded • Costs – pay all costs until goods have been delivered to the buyer-appointed carrier

• Licenses and Customs Paperwork – buyer required to perform and pay all costs...
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