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I.C.C. INCOTERMS
(INTERNATIONAL COMMERCIAL PRACTICES COMMISSION)
http://www.iccwbo.org/incoterms/id3040/index.html

Sending goods from one country to another, as part of a commercial transaction, can be a risky business. If they are lost or damaged, or if delivery does not take place for some other reason, the climate of confidence between parties may degenerate to the point where a lawsuit is brought. However, above all, sellers and buyers in international contracts want their deals to be successfully completed.

If, when drawing up their contract, buyer and seller specifically refer to one of the ICC Incoterms, they can be sure of defining their respective responsibilities, simply and safely. In so doing they eliminate any possibility of misunderstanding and subsequent dispute. Please find below the most commonly used Incoterms:

EXW EX WORKS (...named place)
EX works - means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used.

FCA FREE CARRIER (...named place)
Free Carrier - means that the seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk and expense.

FAS FREE ALONGSIDE SHIP (...named port of shipment)
Free Alongside Ship - means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the buyer to clear the goods for export. It should not be used when the buyer cannot carry out directly or indirectly the export formalities.

DDP DELIVERED DUTY PAID (...named place of destination)
Delivered duty paid - means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.

FOB FREE ON BOARD (...named port of shipment)
Free on Board - means that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

CFR/CF COST AND FREIGHT (...named port of destination)
Cost and Freight - means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

CIF COST,INSURANCE AND FREIGHT (...named port of destination)
Cost, Insurance and Freight - means that the seller has the same obligations as under CFR or CF but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on "minimum coverage". The CIF term requires the seller to clear the goods for export.

CPT CARRIAGE PAID TO (...named port of destination)
Carriage paid to.. - means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of a carriage, by rail, road, sea, air, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.

For a more detailed explanation of the terms referred to above or if additional terms are needed please feel free to contact us.


The American Companies
Custom House Brokers - Foreign Freight Forwarders
N.V.O.C.C.

NEW JERSEY (HQ)
250 Moonachie Road
Moonachie, NJ 07074
201-478-4600 FAX 201-478-4601
 

NEW JERSEY (ACD)
15 Division Street
Fairview, NJ 07022
201-941-4990 FAX 201-941-3632

CALIFORNIA
400 Oceangate, Suite 1106
Long Beach, CA 90802
562-435-2327 FAX 562-435-1204 
 


NORTH CAROLINA (ADCS)

38 Rosscraggon Rd, Suite E
Asheville, NC 28803
828-974-3001 FAX 828-651-9722 


ILLINOIS

881 Route 83
Bensenville, IL 60106
630-860-0782 FAX 630-860-1149



Overseas Locations (Owned and Operated by The American Companies)*

*Please ask for worldwide contact list for many additional American agency locations
**Click on each location to view the country specific web site

HONG KONG (HQ)
18 Harcourt Road
Room 2808, 28/F, Tower 1
Admiralty Centre
Hong Kong
852-2831-0700 FAX 852-2573-0360
 

HONG KONG (Airfreight)
585-609 Castle Peak Road
G/F Room C, Wo Kee Building
N.T. Hong Kong
852-2420-0620 FAX 852-2420-0410

SHENZHEN
2008 Renminnan Road
Room 1116-1117, 11/F.
Shenzhen Kerry Centre
Shenzhen, China
86-755-3338-8866 FAX 86-755-3338-8876 
 

XIAMEN
Unit 7A
YILI Mansion No.9 Hubin West Road
Xiamen, 361003 P.R.C.
86-592-2610491 FAX 86-592-2610493

SHANGHAI
666 Beijing Road E
19A, E. Bock, Hightech Kingworld
Shanghia, China
86-21-5308-8399 FAX 86-21-5308-8599

 

NINGBO
55 Dongdu Road
Room 2228 Hualian Building
Ningbo, China
86-574-8726-1038 FAX 86-574-8726-2238

DALIAN
26 Ren Min Road
Room 2002, China Insurance Building
Dalian, 116001, China
86-411-82646472 FAX 86-411-82646763

TIANJIN
75 Nanjing Road, Heping District
Room 2218 International Building
Tianjin, 300050, China
(86-22) 2313-6038 FAX 86-22-2313-6031

QINGDAO
6 Xiang Gang Zhong Road
Room 1719, Tower A
Qingdao World Trade
Qingdao, China
86-532-85918870 FAX 86-532-85918875

FUZHOU
Room 4010, 4/F
Fujian Foreign Trade Building
Wusi Road, Fuzhou, Fujian China
86-591-8767-4261 FAX 86-591-8767-4761



GUANGZHOU
Room D2, 26/F Xin Yu Building
No. 81 Nonglin Xia Road
Yue Xiu District
Guangzhou, China
86-20-87757090 & 87757091
FAX 86-20-87756598