International Trade and Transport - INCOTERMS 2020

Comprehensive practice flashcards covering INCOTERMS 2020 definitions, classifications, and specific rules for transport modes as discussed in the freight logistics lecture.

INCOTERMS

A series of pre-defined three-letter commercial terms published by the International Chamber of Commerce (ICC) used to define the responsibilities of buyers and sellers for the delivery of goods.

International Chamber of Commerce (ICC)

The organization that publishes and maintains the authoritative rules for INCOTERMS used in international commercial transactions.

"E" DEPARTURE term

A category where the seller makes the goods available to the buyer at the seller’s premises or another named place, placing maximum obligation on the buyer.

"F" MAIN CARRIAGE UNPAID terms

Terms where the seller is responsible for delivering the goods to the export shipment point and the carrier designated by the buyer.

"C" MAIN CARRIAGE PAID terms

Terms where the seller contracts for carriage to the destination but does not assume the risk of loss or damage after shipment.

"D" ARRIVAL terms

Terms where the seller is responsible for all costs and risks associated with delivering goods to the named place in the country of destination.

DPU (Delivered At Place Unloaded)

The 2020 version update that replaced the DAT (Delivered At Terminal) Incoterm.

EXW (Ex-Works)

A term where the seller's only responsibility is to make goods ready for collection at their own premises, providing minimum obligation for the seller.

FCA (Free Carrier)

The seller delivers the goods, cleared for export, to a carrier or person nominated by the buyer at a named place.

CPT (Carriage Paid To)

The seller pays for the carriage of goods to the named destination, but risk transfers to the buyer upon handing goods over to the first carrier.

CIP (Carriage and Insurance Paid to)

The containerized or multimodal equivalent of CIF where the seller pays for carriage and insurance, requiring a minimum cover of Institute Cargo Clause (A).

DAP (Delivered At Place)

The seller delivers when goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading at the named destination.

DDP (Delivered Duty Paid)

The term placing maximum obligation on the seller, who must clear products for both export and import and pay all duties.

FAS (Free Alongside Ship)

A maritime-only term where the seller delivers when goods are placed alongside the buyer's nominated vessel on a quay or barge.

FOB (Free On Board)

A maritime term where the seller must load goods on board the vessel; risk and costs are divided once the goods are actually on board.

CFR (Cost and Freight)

The seller pays costs and freight to the destination port, but risk transfers to the buyer once the goods are loaded on the vessel.

CIF (Cost, Insurance and Freight)

A maritime term where the seller pays transport and insurance costs to the destination; it requires minimum insurance cover of Institute Cargo Clause (C).

Shipped on Board

The specific wording required in the Bill of Lading for FOB terms, including the signature of the transporter and the date of boarding.

Institute Cargo Clause (A)

The 'All risk' insurance cover required under INCOTERMS 2020 for CIP (Carriage and Insurance Paid to).

Institute Cargo Clause (C)

The minimum insurance cover required under INCOTERMS 2020 for CIF (Cost, Insurance and Freight).