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Incoterms (International commercial terms) are used throughout the world to define delivery conditions in the transportation of goods. They are used to divide up the costs of transactions and responsibilities between the vendor and buyer, and they reflect modern transportation practices.
The International Chamber of Commerce (ICC) is responsible for defining and updating these terms in accordance with changes in international commerce. INCOTERMS do not regulate the method of payment used by the buyer. The Incoterms currently in force date from 2020.
| Grupos | Modalidades | Incoterms 2020 |
|---|---|---|
| E | The vendor makes the goods available to the buyer at the vendor’s premises. | EXW - Ex works |
| F | The vendor sends the goods through a mode of transport chosen by the buyer. The buyer assumes the costs and risks involved in the principal transportation. | FCA - Free carrier FAS - Free Along Side Ship FOB - Free On Board |
| C | The vendor arranges transportation but does not assume any risks during transportation or any additional costs after the goods are loaded. | CFR - Cost and Freight CIF - Cost Insurance and Freight CPT - Carriage Paid To CIP - Carriage and Insurance Paid To |
| D | The vendor is responsible for all the costs and risks involved in transporting the goods to the destination country. | DDP - Delivered Duty Paid DPU - Delivered Place Unloaded DAP - Delivered at Place |