International Trade INCOTERMS

1. International trade INCOTERMS
www.daqsgroup.com

2. www.daqsgroup.com
International trade INCOTERMS
In 1936, International Chamber of Commerce (ICC) established codes that rule the conditions of goods delivery in international trade operations. They ease the management of global commerce under an understandable and by all parties commonly known framework. Thereon, those codes called INCOTERMS (International Commercial Terms) are validated internationally. Their main goals are:
1.Define cost openly.
2.Define risks pass on or transfers.
3.Define the place where the goods will be dispatched.
4.Define customs processes and documentation.

3. www.daqsgroup.com
International trade INCOTERMS
Since January 1th 2011, new INCOTERMS come into force. They are updated regularly in order to improve and give more support to traders. Nowadays, INCOTERMS are grouped into four categories: E, F, C, D. Category E: EXW Seller makes the goods available for the buyer in the seller’s facilities or depot; that is a direct delivery ex works. Category F: FCA, FAS and FOB Seller delivers the goods to the carrier nominated by the buyer; this is an indirect deliver without paying the main transportation. Category C: CFR, CIF, CPT and CIP Seller must pay the cost and freight to bring the goods without assuming the risks or additional costs of issues happened before goods are loaded; this is an indirect deliver with paid transportation.

4. www.daqsgroup.com
International trade INCOTERMS
Category D: DAT, DAP and DDP
Seller is responsible for delivering goods to the destination country assuming all risks and costs; this is an indirect deliver to the place of destination. Costs and risks are passed on in the same point as in Category E and F.
¨The INCOTERMS importance lies in establishing international codes that can be understood by all the parties involved in an international sales contract¨. Darilyn Aquino