What are Incoterms?
 Incoterms ("International Commercial Terms") are a set of standardized trade terms published by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in international transactions.
Why is Incoterms Important?

• Clarify who arranges and pays for transport, insurance, customs clearance, etc.

• Reduce the risk of legal disputes.

• Ensure a shared understanding between trading partners.

Key Groups of Incoterms:

1. Group E – Departure

   • EXW (Ex Works): Seller makes goods available at their premises.

2. Group F – Main Carriage Unpaid

   • FCA (Free Carrier): Seller delivers goods to carrier chosen by buyer.

   • FAS (Free Alongside Ship): Goods placed alongside vessel (used for sea transport).

   • FOB (Free On Board): Goods loaded on board vessel (sea transport).

3. Group C – Main Carriage Paid

   • CFR (Cost and Freight): Seller pays for transport to destination port (no insurance).

   • CIF (Cost, Insurance and Freight): Seller pays for transport and insurance.

   • CPT (Carriage Paid To): Seller pays carriage to destination (non-sea).

   • CIP (Carriage and Insurance Paid To): Seller pays carriage and insurance.

4. Group D – Arrival

   • DAP (Delivered at Place): Seller delivers to named place; buyer handles import duties.

   • DPU (Delivered at Place Unloaded): Seller delivers and unloads goods at destination.

   • DDP (Delivered Duty Paid): Seller delivers to destination and pays all duties and taxes.

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