Incoterms

Here you will find the international conditions of sale and purchase.

* Note: The ideal is that the exporter can conduct business whose delivery takes place in the country of the buyer, since, in this way, it is expanding its bargaining power. That is, the exporter, by assuming responsibilities in the negotiation, is enabling the growth of its profit margin. However, there are more INCOTERMS in which the risks arising from international transport are affected by the buyer, rather than the risk to the seller. This is because the transport difficulties faced until now, which frighten the seller, causing him to try to escape the responsibilities of disposal of the goods and the fact that the seller is in a less comfortable position to collect the payment of the buyer after the arrival of the goods in destiny. When the international trade term requires the Brazilian negotiator to make remittances abroad to cover expenses of his responsibility before the negotiated INCOTERM, in general it must be obtained its favorable manifestation of the Foreign Trade Secretariat - SECEX, for the financial remittance.

EXW – Ex Works (...named place)
From Production site (... designated place)

In this term, the exporter finishes his participation in the business when packing the goods in the transport packaging (box, bag, etc.) and makes it available within the established period in his own establishment. Thus, it is the responsibility of the foreign importer to take all steps to withdraw the merchandise from the exporter's establishment, internal transportation, shipment abroad, licensing, freight and international insurance, etc. The term "EXW" should not be used when the seller is not able, directly or indirectly, to obtain the necessary documents to export the merchandise. As can be seen, the buyer assumes all the costs and risks involved in transporting the goods from the place of origin to the destination.

FCA – FREE CARRIER (...named place)
Free Carrier (... designated place)

In that term, the seller (exporter) completes his obligations when delivering the goods, cleared for export, to the care of the international carrier indicated by the buyer, in the designated place of the country of origin. It should be noted that the chosen place of delivery has an impact on the loading and unloading obligations of the goods at that location.If the delivery occurs on the seller's property, the seller is responsible for the shipment. If delivery occurs anywhere else, the seller is not responsible for the landing.In this way, it is up to the buyer (importer) to contract international freight and insurance.This term can be used in any mode of transportation.

FAS – Free Alongside Ship (...named port of shipment)

In that term, the seller's liability shall lapse when the goods are placed along the side of the carrier vessel at the named port of shipment. The contracting of international freight and insurance is at the buyer's expense. The seller is responsible for clearing the goods for export. This term can only be used for water transport (sea, river or lake).

FOB – Free on Board (...named port of shipment)

In that term, the seller's liability for the goods goes up to the point of transposition of the ship's rail at the port of shipment, even though the placing of the goods on board the ship is also, in principle, the seller. The term "FOB" requires the seller to clear the goods for export. It is emphasized that the international carrier is contracted by the buyer (importer). Therefore, in the "FOB" sale, the exporter must know the maritime term agreed between the buyer and the shipowner, in order to verify who should cover the shipping costs of the merchandise. This term can only be used for water transport (sea, river or lake).

CFR – Cost and Freight (...named port of destination)

 

In this term, the seller assumes all costs prior to international shipment, as well as international freight contracting, to transport the merchandise to the port of destination indicated. It should be noted that the risks of loss and damage to the merchandise are transferred from the seller to the buyer even at the port of loading (equal to "FOB" in the sip's rail). Thus, the negotiation (sale itself) is still taking place in the seller's country. The term "CFR" requires the seller to clear the goods for export. This term can only be used for water transport (sea, river or lake).

CIF – Cost, Insurance and Freight (...named port of destination)

In this term, the seller has the same obligations as in the "CRF" and, in addition, that contract the marine insurance against risks of losses and damages during the transportation. Since the negotiation is still taking place in the country of the exporter (the ship's rail at the port of landing is the point of transfer of responsibility on the merchandise), the buyer should note that in the term "CIF" the seller is only obliged to contract insurance with minimum coverage. The term "CIF" requires the seller to clear the goods for export. This term can only be used for water transport (sea, river or lake).

CPT – Carriage Paid to (...named place of destination)

In this term, the seller contracts freight for the transportation of the merchandise to the designated place. The risk of loss and damage to the goods, as well as any additional costs due to events occurring after delivery of the goods to the carrier, are transferred by the seller to the buyer when the goods are delivered to the custody of the carrier. The term "CPT" requires the seller to clear the goods for export. This term can be used in any mode of transportation, including multimodal.

CIP – Carriage and Insurance Paid to (...named place of destination)

In this term, the seller has the same obligations defined in the "CPT" and, in addition, holds the insurance against the risk of damages and losses of the merchandise during international transportation. The buyer should note that in the term "CIP" the seller is only required to contract insurance with minimum coverage, since the sale (transfer of responsibility on the merchandise) takes place in the country of the seller. The term "CIP" requires the seller to clear the goods for export. This term can be used in any mode of transportation, including multimodal.

DAP –Delivered At Place) (...named place of destination)

The responsibility of the seller is to place the goods at the disposal of the buyer, ready to be unloaded, not dealing with the formalities for importation, at the designated terminal of destination, or at another agreed place, assuming the costs and risks inherent to transportation to the place of destiny.

DAT – (Delivered at Terminal) (...named place of destination)

The seller terminates his responsibility when he places the goods at the disposal of the buyer, not dealing with the formalities for importation, at the designated terminal of destination, assuming the costs and risks inherent in the transportation to the port of destination and the unloading of the merchandise.

DDP – Delivered Duty Paid (...named place of destination)

In this term, the seller only complies with its delivery obligation when the goods have been put into availability in the designated place of the Country of final destination, cleared for importation. The seller assumes all risks and costs, including taxes, fees and other charges incurred on importation. Unlike the term 'EXW', which represents the minimum of obligations for the seller, 'DDP' entails the maximum obligations for the seller. The term 'DDP' should not be used when the seller is not able, directly or indirectly, to obtain the necessary documents to import the goods. This term can be used in any mode of transportation, including multimodal.