All Around Incoterms
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade. Understanding these terms is crucial for medical equipment procurement professionals to ensure clear communication and proper risk allocation in global transactions.
| Incoterm | Loading, Delivery to Port & Export Customs | Unloading | Loading at Port of Export | Transit to Destination | Cargo Insurance | Unloading at Port of Import | Loading Truck at Port of Import | Carriage to Destination | Import Customs Clearance | Import Duties | Delivery Cartage to Final Destination |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EXW – Ex Works | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| FCA – Free Carrier (at Dry Port) | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| FAS – Free Alongside Ship | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| FOB – Free On Board | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| CFR – Cost and Freight | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| CIF – Cost, Insurance & Freight | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| CPT – Carriage Paid To | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| CIP – Carriage & Insurance Paid To | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| DAT – Delivered at Terminal | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER | BUYER |
| DAP – Delivered at Place | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | BUYER | BUYER | BUYER |
| DPU – Delivered at Place Unloaded | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | BUYER | BUYER | SELLER |
| DDP – Delivered Duty Paid | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER | SELLER |
Key Points to Remember
- Risk Transfer: The point where risk transfers from seller to buyer varies significantly between Incoterms
- Cost Allocation: Each term clearly defines which party bears specific costs and responsibilities
- Documentation: Understanding Incoterms helps determine who is responsible for export/import documentation
- Insurance: Only CIF and CIP include insurance coverage by the seller