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USEFUL INFORMATION / INCOTERMS

The Incoterms are terms that define clearly the obligations between sellers and buyers, in an internacional contract.

EXW
(Ex-works; Ex-factory; Ex-warehouse,Ex-mil) The seller delivers when he places the goods at the disposal of the buyer at the seller's premises or another named place.
The buyer has to bear all costs and risks involved in taking the goods from the sellers' premises.

FCA
(Free carrier) 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 the goods at that place, 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.

FOB
(Free on board) The seller delivers when the goods pass the ship's rail at the named port of shipment. 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.

FAS
(Free alongside ship) The seller delivers when the goods are placed alongside the vessel at the named port of shipment. 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 for export.
However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.

CFR
(Cost and freight) 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.

CIF
(Cost, insurance and freight) 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.
Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum cover. The CIF term requires the seller to clear the goods for export.

CPT
(Carried paid to) 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. The buyer bears all risks and any other costs occurring after the goods have been so delivered.
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) 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. The buyer bears all risks and additional costs occurring after the goods have been so delivered. The seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. The buyer should note that under the CIP term the seller is only required to obtain insurance only on minimum cover.
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) 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.
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) 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 the goods.
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) The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay 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. 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 only be used 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.


DDU
(Delivered duty unpaid) 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. Such "duty" has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time.

DDP
(Delivered duty paid) 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 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.


 
  Maritima de Servicios Group S.R.L. / Tte. Gral. Juan D. Perón 683 3 rd floor / C1038AAM - Buenos Aires - Argentina
Tel: +54 11 4322-4902 / 4326-6573 / Fax: +54 11 4393-1663 / Email: maritima@maritima-group.com / Internet: www.maritima-group.com