Mailing Address:
PO Box: 34528, Dubai, UAE
Corporate Office
301, Corporate Center,
Mankhool, Kuwait Street,
Dubai, United Arab Emirates
Gen Server mail id :
mship@mirageshipping.com
Methods Of Delivery In International Trade "INCO TERMS 2000"
EXW
(Ex Works)
Means that the seller delivers when he places
the goods at the disposal of the buyer at the seller's premises or another named
place (i.e. works, factory, warehouse, etc.) not cleared for export and not
loaded on any collecting vehicle. This term thus represents the minimum
obligation for the seller, and the buyer has to bear all costs and risks
involved in taking the goods from the seller's premises
FCA
(Free Carrier)
Means that the seller delivers the goods,
cleared for export, to the carrier nominated by the buyer at the named place. It
should be noted that the chosen place of delivery has an impact on the
obligations of loading and unloading the goods at that place. If delivery occurs
at the seller's premises, the seller is responsible for loading. If delivery
occurs at any other place, the seller is not responsible for unloading. This
term may be used irrespective of the mode of transport, including multimodal
transport.
FAS
(Free Alongside Ship)
Means that the seller delivers when the goods
are placed alongside the vessel at the named port of shipment. This means that
the buyer has to bear all costs and risks of loss of or damage to the goods from
that moment. The FAS term requires the seller to clear the goods for export.
FOB
(Free On Board)
Means that the seller delivers when the goods
pass the ship's rail at the named port of shipment. This means that the buyer
has to bear all costs and risks of loss of or damage to the goods from that
point. The FOB term requires the seller to clear the goods for export. This term
can be used only for sea or inland waterway transport.If the parties do not
intend to deliver the goods across the ship's rail, the FCA term should be used.
CFR
(Cost and Freight)
Means that the seller delivers when the goods
pass the ship's rail in the port of shipment. The seller must pay the costs and
freight necessary to bring the goods to the named port of destination BUT the
risk of loss of or damage to the goods, as well as any additional costs due to
events occurring after the time of delivery, are transferred from the seller to
the buyer.The CFR term requires the seller to clear the goods for export. This
term can be used only for sea and inland waterway transport. If the parties do
not intend to deliver the goods across the ship's rail, the CPT term should be
used.
CIF
(Cost,Insurance and Freight)
Means that the seller delivers when the goods
pass the ship's rail in the port of shipment. The seller must pay the costs and
freight necessary to bring the goods to the named port of destination .The CIF
term requires the seller to clear the goods for export. This term can be used
only for sea and inland waterway transport. If the parties do not intend to
deliver the goods across the ship's rail, the CIP term should be used.
CPT
(Carriage Paid To)
Means that the seller delivers the goods to
the carrier nominated by him but the seller must in addition pay the cost of
carriage necessary to bring the goods to the named destination. This means that
the buyer bears all risks and any other costs occurring after the goods have
been so delivered .If subsequent carriers are used for the carriage to the
agreed destination, the risk passes when the goods have been delivered to the
first carrier. The CPT term requires the seller to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal
transport.
CIP
(Carriage and Insurance Paid)
Means that the seller delivers the goods to
the carrier nominated by him but the seller must in addition pay the cost of
carriage necessary to bring the goods to the named destination. This means that
the buyer bears all risks and any additional costs occurring after the goods
have been so delivered. However, in CIP the seller also has to procure insurance
against the buyer's risk of loss of or damage to the goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance
premium.If subsequent carriers are used for the carriage to the agreed
destination, the risk passes when the goods have been delivered to the first
carrier. The CIP term requires the seller to clear the goods for export. This
term may be used irrespective of the mode of transport including multimodal
transport.
DAF
(Delivered At Frontier)
Means that the seller delivers when the goods
are placed at the disposal of the buyer on the arriving means of transport not
unloaded, cleared for export, but not cleared for import at the named point and
place at the frontier, but before the customs border of the adjoining country.
The term «frontier» may be used for any frontier including that of the country
of export. Therefore, it is of vital importance that the frontier in question be
defined precisely by always naming the point and place in the term. This term
may be used irrespective of the mode of transport when goods are to be delivered
at a land frontier. When delivery is to take place in the port of destination,
on board a vessel or on the quay (wharf), the DES or DEQ terms should be used.
DES
(Delivered Ex Ship)
Means that the seller delivers when the goods
are placed at the disposal of the buyer on board the ship not cleared for import
at the named port of destination.The seller has to bear all the costs and risks
involved in bringing the goods to the named port of destination before
discharging. If the parties wish the seller to bear the costs and risks of
discharging the goods, then the DEQ term should be used. This term can be used
only when the goods are to be delivered by sea or inland waterway or multimodal
transport on a vessel in the port of destination.
DEQ
(Delivered Ex Quay)
Means that the seller delivers when the goods
are placed at the disposal of the buyer not cleared for import on the quay
(wharf) at the named port of destination. The seller has to bear costs and risks
involved in bringing the goods to the named port of destination and discharging
the goods on the quay (wharf).The DEQ term requires the buyer to clear the goods
for import and to pay for all formalities, duties, taxes and other charges upon
import. This term can be used only when the goods are to be delivered by sea or
inland waterway or multimodal transport on discharging from a vessel onto the
quay (wharf) in the port of destination. However if the parties wish to include
in the seller's obligations the risks and costs of the handling of the goods
from the quay to another place (warehouse, terminal, etc.) in or outside the
port, the DDU or DDP terms should be used.
DDU
(Delivered Duty Unpaid)
Means that the seller delivers the goods to
the buyer, not cleared for import, and not unloaded from any arriving means of
transport at the named place of destination. The seller has to bear the costs
and risks involved in bringing the goods thereto, other than, where applicable,
any «duty» (which term includes the responsibility for and the risks of the
carrying out of customs formalities, and the payment of formalities, customs
duties, taxes and other charges) for import in the country of destination. This
term may be used irrespective of the mode of transport but when delivery is to
take place in the port of destination on board the vessel or on the quay
(wharf), the DES or DEQ terms should be used.
DDP
(Delivered Duty Paid)
Means that the seller delivers the goods to
the buyer, cleared for import, and not unloaded from any arriving means of
transport at the named place of destination. The seller has to bear all the
costs and risks involved in bringing the goods thereto including, where
applicable, any «duty» (which term includes the responsibility for and the risk
of the carrying out of customs formalities and the payment of formalities,
customs duties, taxes and other charges) for import in the country of
destination. If the parties wish the buyer to bear all risks and costs of the
import, the DDU term should be used. This term may be used irrespective of the
mode of transport but when delivery is to take place in the port of destination
on board the vessel or on the quay (wharf), the DES or DEQ terms should be used.
NB : The implications and the interpretations of Inco terms which have been revised / published in different years may differ from one to the other.