Tag List for Incoterms

What’s FOB? ・ Terms and conditions of transfer of responsibility on the deck of the ship FOB is one of the International Commercial Terms which is called Incoterms as abbreviation. FOB refers to the terms and conditions under which the responsibility for costs and risks transfers on the deck of a ship staying at the port of export. FOB stands for Free On Board, and in this case “Board” refers to the deck of a ship. So, FOB means, “On the deck of a ship, the exporter is free from the responsibility (the responsibility is transferred to the importer)”. In the shipping documents, the name of the export port is […]

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What’s CIF? CIF stands for Cost, Insurance, and Freight. And it usually followed by the name of the destination port / import port specified after. It refers to the conditions under which freight and insurance are prepaid by the exporter. In CIF terms, exporter pay the ocean freight and insurance to the destination port. The insurance required by CIF for sellers (exporters) are defined as the ICC’s tax payment amount (C), which is the minimum coverage. If the buyer (importer) is seeking a wider coverage of insurance terms, they need to be agreed in the contract. Characteristics of CIF ・ In terms of the cost and risk of the shipment, […]

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Video Animation about Incoterm Group-D What is DDP ? ・In DDP, Exporter pay freight and insurance DDP are Initials of “Delivered Duty Paid”. It is one of Incoterms for trading. DDP refer to the term that Exporters pay freight and insurance. It included to Group D in Incoterms. Characteristic of DDP ・DDP requires Exporters maximum work and risk. For Importer, it requires minimum work and risk. DDP is only term that Exporters do import customs procedures For Importer, DDP is the easiest term in Incoterms. In contrast, Exporters have to do a lot of work in DDP. Exporters should cover freight and insurance until the cargo delivered to the designated […]

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Video Animation About EXW Aspects of EXW? EXW (EX Works) is one of the abbreviations called INCOTERMS that indicate the terms and conditions of trade. What is EXW? ・EXW is the least burdensome trade condition for sellers! INCOTERMS(International Commercial Terms) has 11 kinds of trade conditions, but EXW is the least burdensome and least risky condition for the seller. Delivery location of cargo that stated in EXW ・Delivery is completed at the seller’s factory or warehouse. Loading is also done by the buyer In EXW, the seller delivers the cargo to the buyer on their premises, such as a factory or warehouse. EXW stated for the seller only needs to […]

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This time I would like to explain the difference between ”Freight Prepaid” and “Freight Collect” described in B / L. You will understand the difference easily by translating each words in English. Explained Freight Prepaid and Collect by Animation Video Freight: Fare to transport the goods Prepaid: Pay in advance Collect: To take something such as money and tax So Freight Prepaid is the fare paid in advance, which means that the exporter(Shipper) will pay the fare. On the other hand, Freight Collect is to take the fare at the importer(Consignee) side. Who pay the fare? Freight Prepaid: Shipper pay the fare Freight Collect: Consignee pay the fare What is […]

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It is Incoterms that you must understand as long as you are a person who works not only in forwarders but also in the logistics department of manufacturers and trading companies. There are 11 items in Incoterms, but this time I would like to explain the 6 items used frequently. Animation Movie – 6 Basic INCOTERMS What is Incoterms? Incoterms is the definition of trade terms negotiated by the International Chamber of Committee. In trade transactions, the seller and buyer must firmly agree on conditions such as fare, insurance premiums and risk burden. This must not be inconsistent depending on the language and the countries so that we use internationally […]

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