Incoterms 2010

A short description of the incoterms, necessary for better understanding how to approach the transport issue in an international trade.

For those who do not chew shipments every day some terms seem to come from another planet.
EXW, CFR, DDP seem like Martian codes that presuppose a landing on Earth! No fear, humanity will not overcome. It is "only" about incoterms.
Incoterms is the abbreviation of International Commercial Terms, and identifies the commercial agreements commonly used in the purchase and sale of movable property (i.e. goods that can be geographically transferred) that regulate the distribution of responsibilities, costs and risks of the delivery of goods, between seller and buyer .
It is good to know that these are not legal regulations, therefore they do not automatically apply to sales contracts, but must be agreed from time to time. So knowing their meaning in depth is very important for anyone who has business relationships, in order to avoid running into risky situations.
The incoterms allow to define the moment of delivery, defined as the moment in which the transfer of responsibility and risks of transport between the seller and the buyer takes place.
It simply helps to identify who, between the seller and the buyer, has to deal with the shipment and to where.
The incoterms are an institution for over sixty years, to be precise since 1953. During the decades they were frequently updated until their last version of 2010. The terms indicated in the incoterms are represented in abbreviations, which may seem unclear at a first reading, but understandable once some concepts have been clarified. So let's see together what they are.
They are divided into two distinct groups:
the first contains the terms valid for any type of transport
the second includes only the terms applicable to transport by sea or river.

1st group

EXW
In "Ex Works" agreement the seller makes available to the buyer the goods at their headquarters or that of the last processing phase.
The seller does not assume any risk, cost or liability. All shipping costs are the buyer's responsibility. It is commonly called ex works.
FCA
In "Free Carrier" the seller delivers the goods to the courier indicated by the buyer, at their premises or in another location designated by the buyer.
In this case the seller is responsible for the costs and risks for the loading and transport phase up to the courier's premises.
CPT
In "Carriage Paid To" the seller delivers the goods to the carrier at an agreed location.
The seller must therefore enter into a transport contract and pay the costs up to the agreed place.
CIP
"Carriage and Insurance Paid to" means that the seller must deliver the goods to the carrier in an agreed place.
The seller must therefore enter into a transport contract and pay the shipping costs up to the agreed place of fate.
The seller must also stipulate an insurance coverage contract against the buyer's risk of loss or damage during transport. In this case, however, the insurance coverage offered will be minimal. DAT
"Delivered At Terminal" means that the seller is responsible for the transport until the goods, once the carrier has also prepared the unloading operations, have arrived in a place agreed as a port or a terminal.
"Terminal" identifies a quay, a port, a warehouse, or an air cargo terminal.
          DAP           "Delivered At Place" means that the seller assumes all risks of transport until the goods are unloaded at the place agreed with the buyer.           DDP           "Deliverd Duty Paid" means that the seller is responsible and takes care of all risks and costs of transport until delivery to the place agreed with the buyer, and takes care of all the risks and costs of the customs clearance operations.                                         2nd group           FAS           "Free Along Side" means that the seller delivers the goods alongside, for example on a quay or a barge, to the ship designated by the buyer to transport. The risk and responsibility of the goods passes from the seller to the buyer when the shipment is made available along the quay. All the transport phases starting from the loading operations of the ship are under the responsibility of the buyer.           FOB           "Free On Board" means that the seller delivers the goods at the place of loading of the ship and is responsible for loading the shipment on the ship indicated by the buyer.           CFR (or C & F)           "Cost and Freight" means that the seller delivers the goods on board the ship designated by the buyer, but bears the costs up to the place of de