• slide 1
    Making International Connections
  • slide 1
  • slide 1
  • slide 1


Incoterms (International Commercial Terms) are recognized internationally as standard trade terms used in sales contracts.

Incoterms are used to make sure that both the buyer and seller understand and agree to:

· The party that is responsible for the charges of transporting the goods, including insurance, local taxes and duties
· The location that the goods should be picked up from and transported to
· The party that is responsible for the goods during each step of the transportation process

EXW – Ex Works (named place of delivery)

The Seller confirms that the freight is available at their premises. The maximum obligation now falls on the buyer while the minimum obligation falls on the seller. The Ex Works term is used when quoting for the sale of goods without any transport charges included. The buyer is then responsible to arrange collection of the freight from the seller’s premises and arrange transport through to end destination at their own expense. This includes the buyer arranging the export documentation and the customs clearance (if applicable).

FCA - Free Carrier (named place of delivery)

Delivery of the freight to the carriers or nominated agents named location is the responsibility of the seller. The seller also arranges for the export customs clearance, if applicable.

CPT – Carriage Paid To (named place of destination)

The seller arranges and pays the transportation costs, normally through to destination airport. The seller accepts and is responsible for any origin costs including export customs clearance and freight costs for transportation (usually destination airport). The seller is not responsible for arranging any insurance and for delivery of the freight to its ultimate destination (buyer’s premises).

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

The seller is responsible for all transportation charges as well as arranging insurance coverage from the seller’s premises through to named destination airport. With regards to the insurance placing, risk passes when the freight is handed over to the first carrier. For intermodal deliveries, CIP is used.

DAT – Delivered at Terminal (named terminal at airport or place of destination)

The seller is responsible for all transportation charges (export fees, carriage, insurance, and destination airport charges) and accepts all risk until after the goods have cleared customs at destination.

DAP – Delivered at Place (named place of destination)

DAP can be used for any form of transport, or when there is more than one mode of transport. The seller is responsible for arranging transportation and delivery of the freight, ready for unloading from the arriving aircraft, at the named place. Any local duty charges are not paid by the seller under DAP (this is the difference from Delivered at Terminal DAT, where the buyer is responsible for unloading)

DDP – Delivered Duty Paid (named place of destination)

The seller is responsible for transporting the freight to the buyer’s named place, and pays all costs in transporting the freight to the destination including any applicable import duties and taxes. However, the seller is not responsible for the unloading of the freight. The maximum obligations are on the seller with the minimum obligations on the buyer.

Contact us

Visual Media Partnership LLP
1-11 Mersey View
Brighton Le Sands
L22 6QA

Tel No: 0151 281 8178