1. Incoterms: International Commercial Terms are contract terms that show transport obligations, costs and risks.
When we buy, it tells us:
If we have to make logistics arrangements to move the goods
If we have to make arrangements to clear goods for export and or import
What is included in our price (freight, duties, import/export fees,etc).
If there is a problem in transit, who holds the responsibility
When we sell, it tells us:
How to price our sales transaction (do we include freight, duties and taxes in our price)
Do we have to export clear the shipments, do we have to import clear the shipment?
Do we have to make the logistics arrangements?
Who is responsibility if there is a problem in transit?
It tells us who should be the importer, who selects the broker, who pays the duty and what is in our price

2. Inco terms show the transfer of risk, not title!
INCO Terms - International Commercial Terms are contract terms that show transport obligations, costs and risks.
Tells us who is Responsible for the Import or Export and who bears the cost of freight, clearance fees and duties!
Inco terms show the transfer of risk, not title!
Use “named Place”, ie..Exw Houston, US
Shows responsibilities of buyers and sellers
Shows who bears the cost associated with each component of the movement (freight costs, agent fees, customs fees and duties)
ExW,
Buyer must export
Clear material
FCA,
Our preferred
Terms
Moving left to right, the sellers responsibilities increase, while the buyers responsibilities decrease
FOB
CIF
DDU, DDP
DDP indicates that the seller should clear the material with their own broker and pay duties and taxes!

3. Use a named place with Inco Terms!
Common Incoterms
Use a named place with Inco Terms!
Origin Terms EXW - Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation. Buyer bears all cost and risk involved in taking goods from seller’s premises.
International Carriage NOT Paid by Seller FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. Buyer takes risk of loss at named location.
FOB - Free On Board vessel, named ocean port of shipment. Buyer takes risk of loss once goods are on board vessel.
International Carriage Paid by the Seller CIF - Cost, Insurance and Freight, named ocean port of destination. Seller completes export process and covers freight and insurance to destination port.
Arrival At Stated Destination
DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared by seller. Buyers obligation is import clearance and duty payment.
This term is used for any mode of transportation. DDP - Delivered Duty Paid, named place of destination, unloaded, cleared. Buyer has no involvement with transportation, customs clearance or duty payment.
This term is used for any mode of transportation.

6. INCOTERMS 2000 CHART OF RESPONSIBILITY
Seller
warehouse
labor change
at origin
storage at
point of
origin
Seller up to
delivery
unloading at
port of import
Buyer;
when
material at
border
Buyer; when
mat'l
placed
on plane
handed to
carrier at
time of pick up
passed the
ship's rail at
port of export
on ship
Buyer, when
along side
ship
ready at
seller's
risk of loss
named port of
destination
named place
Services
Delivered
Duty Paid
Duty Unpaid
Delivered ex
Quay ( duty
paid)
Ship
Delivered at
Frontier
Carriage &
Insurance
Paid
Carriage
Paid To
Cost ,
Insurance &
Freight
Cost and
Free on
Board
Free
Alongside
Free Carrier
Ex Work
and
DDP
DDU
DEQ
DES
destination
named port of
named place
Services
Delivedred
Duty Paid
Delivered
Duty Unpaid
Delivered ex
Quay ( duty
paid)
Ship
Delivered at
Frontier
Carriage &
Insurance
Paid
Carrieage
Paid To
Cost ,
Insurance &
Freight
Cost and
Free on
Board
Free
Alongside
ship
Free Carrier
Ex Work
and
DDP
DDU
DEQ
DES
DAF
CIP
CPT
CIF
CFR
FOB
FAS
FCA
EXW
Incoterms
Seller
Buyer
customs
duties and
taxes abroad
delivery
charges to
final
charges in
foreing
port
Incoterms
EXW
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DAF
Seller
Buyer
loading at
the point of
origin
export
packing
warehouse
labor change
at origin
storage at
point of
Seller up to
delivery
unloading at
port of import
Buyer;
when
material at
border
Buyer; when
mat'l
placed
on plane
handed to
carrier at
time of pick up
passed the
ship's rail at
port of export
on ship
Buyer, when
along side
ship
ready at
seller's
risk of loss
named port of
destination
named place
Seller
Buyer
ocean freight
loading on
ocean carrier
forwarding
fees
port
receiving
charges
inland freight
loading at
the point of
origin
export
packing
Seller
Buyer
customs
duties and
taxes abroad
delivery
charges to
final
destination
charges in
foreing
port
ocean freight
loading on
ocean carrier
forwarding
fees
receiving
charges
inland freight