INCOTERMS 2020


The main changes in Incoterms 2024 are:

DPU (Delivered at Place Unloaded)

Replaces DAT (Delivered at Terminal) Incoterm, DPU covers the delivery to any agreed location, including but not limited to terminal delivery.
CIF and CIP Incoterms are under new insurance requirements.
Incoterm FCA allows the buyer to ask the shipping company or its agent to issue the B / L to the buyer with the legend "on board”.

EXW (Ex Works)

The obligations of the seller / exporter end when the merchandise is available to the buyer / importer at its facilities, all expenses are borne by the buyer, the seller is being exempt from all responsibility, for the loading of the merchandise and for the export customs tramits.

FCA (Free Carrier)

The seller delivers the merchandise at an agreed place and assumes the costs and risks until the delivery of the merchandise at the agreed place. Example:
FCA Factory is used for full loads, the seller loads the merchandise in the transport and from that moment, the merchandise becomes responsibility of the buyer.
FCA Terminal is used for partial loads, the seller delivers the merchandise to the designated place and unload it, handling and consolidation in other transport are at the buyer's risk and expense.
When documentary payment mechanisms are included in the commercial operation, the buyer can request the carrier to issue the B / L with the legend "on board".

FAS (Free Alongside Ship)

La entrega se produce en el país de origen, cuando el vendedor deja la mercancía en el muelle del puerto y con el despacho de exportación ya realizado. Así termina para el vendedor la responsabilidad sobre daño o pérdida de la mercancía y la asume el comprador, no incluye subirla a bordo del buque.

FOB (Free On Board)

The delivery occurs in the country of origin, when the seller leaves the merchandise in the ship's warehouse, loaded and stowed and with the export dispatch already completed. The seller's responsibility for any damage or loss of the merchandise is transferred to the buyer once the merchandise has been declared on board the ship.

CFR (Cost and Freight)

The main transport is paid by the seller but the risk on this journey is of the buyer, who is in charge of the insurance of the goods, the delivery is done when the goods are put on board the ship, the seller must hire the international transport and pay the freight.

CIF (Cost, Insurance and Freight)

The main transport is paid by the seller but the risk is of the buyer, the insurance is paid by the seller who must put the buyer as beneficiary and the delivery occurs when the goods are put on board the ship.

CPT (Carriage Paid To)

The main transport is paid by the seller, but the risk is of the buyer, if there are several carriers, the delivery is made with the first carrier at the place agreed by the seller, it must be specified if the risk will be transmitted in a later stage.

CIP (Carriage and Insurance Paid To)

The main transport and insurance are paid by the seller, but the risk is of the buyer. The buyer must have clear that the insurance of the merchandise is done by the seller but the buyer asumes the risk once the merchandise leaves the country of origin and when it is delivered to the main carrier, the seller must list the buyer as the beneficiary of the insurance.

DAP (Delivered at Place)

The delivery occurs anywhere in the country of destination and without import customs clearance and unloading, these are the buyer's responsibility.

DPU (Delivered at Place Unloaded)

The delivery of the merchandise occurs in the country of destination without import clearance at the agreed destination, the seller must do the unload at destination. This Incoterm replaces DAT and allows to indicate the delivery in another agreed place besides the terminal.

DDP (Delivered Duty Paid)

Delivery occurs anywhere in the country of destination, including duties and taxes. The buyer should only receive the merchandise.