INCOTERMS:
Acronym for International Commercial Terms.
The technique used is to indicate the geographical location where cargo is transferred from the seller to the buyer in certain conditions.
Classification into 4 groups organized by growing obligation criteria for seller:
- Group E - Seller puts the good at buyer disposal in own location (EXW).
- Group F - Seller must deliver the goods to a carrier appointed by the buyer (FCA, FAS,FOB).
- Group C - Seller is obligated to provide transportation (CIF, CIP and insurance), but not to bear the risk of loss or damage to the goods (CFR, CIF, CPT, CIP).
- Group D - seller must bear all costs and risks of transport of goods up to the country of destination.
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