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Explanation for every point of Incoterms 2020
FCA
FREE CARRIER
Supplier produced, packed and prepared the cargo to be shipped. Goods are received by the buyer’s carrier, which picks up the load from the seller’s place. You can call FCA conditions “buyer’s pick-up."
CIP
CARRIAGE AND INSURANCE PAID TO
Same as CPT but insurance is added for seller’s account on a definite part of the route. The shipping section covered by insurance, can be any.
DTP
DELIVERED AT TERMINAL PAID
Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, discharging, and paid import customs duties in consideration of the cargo value, taking into account transport costs.
CFR
COST AND FREIGHT
Supplier has organized land delivery, completed port formalities, performed loading on ship’s board and paid freight charges to the port (airport) of destination.
CPT
CARRIAGE PAID TO
The seller arranges the delivery to the indicated place and includes it in the goods price. As a rule, such a place is a terminal where ocean carrier (shipping line) can accept cargo for further transportation.
CIF
COST, INSURANCE AND FREIGHT
The same as CFR, but insurance is added for seller’s account on a definite part of the route. The shipping section covered by insurance, can be any.
DAP
DELIVERED AT PLACE
Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, discharging, completed port formalities, and paid land transport to the address of the consignee for subsequent customs procedures.
FOB
FREE ON BOARD
Supplier has organized land delivery, completed port formalities and performed loading on ship’s board.
СNI
COST AND INSURANCE
Same as the FCA, but insurance is added for seller’s account on a definite part of the route. The shipping section covered by insurance, can be any.
DPU
DELIVERED NAMED PLACE UNLOADED
Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, and discharging.
DPP
DELIVERED AT PLACE PAID
Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, paid freight charges to the port (airport) of destination, discharging, completed port formalities, paid land transport to the address of the consignee, along with import customs duties in consideration of the cargo value, taking into account transport costs
Incoterm/Cost
EXW
FCA
CPT
CIP
FAS
FOB
CFR
CIF
DPU
DAP
DDP
Packaging
S
S
S
S
S
S
S
S
S
S
S
Loading from warehouse
S
S
S
S
S
S
S
S
S
S
S
Export customs clearance
B
S
S
S
S
S
S
S
S
S
S
Pre-carriage
B
B
S
S
S
S
S
S
S
S
S
Origin port fees
B
B
B
B
S
S
S
S
S
S
S
Handling at departure (OTHC)
B
B
B
B
B
S
S
S
S
S
S
Main transportation
B
B
B
B
B
B
S
S
S
S
S
Transportation insurance
S
S
S
S
S
S
S
S
S
S
S
Handling arrival (DTHC)
B
B
B
B
B
B
B
B
S
S
S
Destination port fees
B
B
B
B
B
B
B
B
B
S
S
Post carriage
B
B
B
B
B
B
B
B
B
S
S
Import customs clearance
B
B
B
B
B
B
B
B
B
B
S
Unloading into warehouse
B
B
B
B
B
B
B
B
B
B
B

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