INTERNATIONAL FREIGHT FLOWS SupplierInland freightExport customs Import customs Inland freight Buyer

 Set of international rules for interpretation of trade terms used in foreign trade  Cost [cost include cost of goods and/or freight & insurance till delivery at contracted point]  Risks and responsibilities of the Buyer and Seller  Transfer of Property INCOTERMS

 Delivery to named port/place  Deliver goods into custody of freight agent, carrier or owner  Transport methods: Rail Road Sea Air Inland waterway Multi-modal (combination)

 EXW – Ex Works  FCA – Free Carrier  FAS – Free alongside Ship  FOB – Free on Board  CFR – Cost & Freight  CIF – Cost Insurance & Freight  CPT – Carriage Paid to  CIP – Carriage Insurance Paid  DAF – Delivered at Frontier  DES – Delivered Ex Ship  DEQ – Delivered Ex Quay  DDU – Delivered Duty Unpaid  DDP – Delivered Duty Paid INCOTERMS 2000

 Origin Term (EXW) : {Departure} Seller only makes goods available at the seller’s own premises  F – Terms ( FCA,FAS,FOB) {Main Carriage Unpaid} Seller is called upon to deliver the goods to a carrier appointed by the purchaser. Seller will be responsible only for handing over the goods to the purchaser’s international carrier in the country of export

INCOTERMS 2000  C – Terms (CFR,CIF,CPT,CIP) {Main Carriage Paid} Seller will be responsible for handing over the goods to the purchaser’s international carrier in the country of export duly paid for freight and/or insurance till port of entry/destination in the importer’s country  D – Terms (DAF,DES,DEQ,DDU,DDP) {Arrival} Seller will be responsible for handing over the goods to the purchaser in the purchaser’s country at the port of entry/final destination duty cleared/ uncleared

SupplierInland freight Export customs Import customs Inland freight Buyer EXW FOB FCA FAS DES DAF DEQ DDU CIF CFRCIP CPT DDP DAT DAP INTERNATIONAL FREIGHT FLOWS INCOTERMS 2000 INTERNATIONAL FREIGHT FLOWS INCOTERMS 2010

SupplierInland freight Export customs Import customs Inland freight Buyer EXW FOB FCA FAS CIF CFRCIP CPT DDP DAT DAP

 EXW – Ex Works  FCA – Free Carrier  FAS – Free alongside Ship  FOB – Free on Board  CFR – Cost & Freight  CIF – Cost Insurance & Freight  CPT – Carriage Paid to  CIP – Carriage Insurance Paid  DAT – Delivered at Terminal  DAP – Delivered at Place  DDP – Delivered Duty Paid INCOTERMS 2010

 Origin Term (EXW) : {Departure} Seller only makes goods available at the seller’s own premises  F – Terms ( FCA,FAS,FOB) {Main Carriage Unpaid} Seller is called upon to deliver the goods to a carrier appointed by the purchaser. Seller will be responsible only for handing over the goods to the purchaser’s international carrier in the country of export

INCOTERMS 2010  C – Terms (CFR,CIF,CPT,CIP) {Main Carriage Paid} Seller will be responsible for handing over the goods to the purchaser’s international carrier in the country of export duly paid for freight and/or insurance till port of entry/destination in the importer’s country  D – Terms (DAT,DAP,DDP) {Arrival} Seller will be responsible for handing over the goods to the purchaser in the purchaser’s country at the port of entry/final destination duty cleared/ uncleared