Understanding incoterms

Incoterms define the rights and duties of buyers and sellers involved in international and national trade.

In the version dating from 2020 in force until 2030, there are 11 incoterms.

4 incoterms concern the transport of goods by boat (sea or river):

  • FAS (Free Alongside Ship).
    -FOB (Free On Board).
  • CFR (Cost and Freight).
  • CIF (Cost, Insurance and Freight).

The remaining 7 are multimodal and therefore are not linked to a particular means of transport:

  • EXW (Ex Works).
  • FCA (Free Carrier).
  • CPT (Carriage Paid To).
  • CIP (Cost, Insurance and Freight).
  • DPU (Delivered at Place Unloaded).
  • DAP (Delivered At Place) or DDU (Duty Delivery Unpaid).
  • DDP (Delivered Duty Paid).

In e-commerce, the most commonly used incoterms are DAP (or DDU) and DDP.

With DAP, the seller supports the entire transport from the departure of the goods from his premises to the buyer's address, only the unloading and the import formalities are the responsibility of the buyer.

With DDP, the seller takes charge of the entire transport from the departure of the goods from his premises to the place of delivery designated by the buyer, which includes taking charge of all formalities, rights and taxes.

Incoterms are inseparable from a place (address, city, etc.) which generally designates the place where the goods are deemed to have been delivered by the seller, i.e. the point where the risks are transferred to the buyer.

Example of wording of the incoterm on a commercial invoice:
Incoterm: DDP Reims

In the context of transport via Boxtal, the incoterm to be indicated is always DAP.

Understanding incoterms

Incoterms define the rights and duties of buyers and sellers involved in international and national trade.

In the version dating from 2020 in force until 2030, there are 11 incoterms.

4 incoterms concern the transport of goods by boat (sea or river):

  • FAS (Free Alongside Ship).
    -FOB (Free On Board).
  • CFR (Cost and Freight).
  • CIF (Cost, Insurance and Freight).

The remaining 7 are multimodal and therefore are not linked to a particular means of transport:

  • EXW (Ex Works).
  • FCA (Free Carrier).
  • CPT (Carriage Paid To).
  • CIP (Cost, Insurance and Freight).
  • DPU (Delivered at Place Unloaded).
  • DAP (Delivered At Place) or DDU (Duty Delivery Unpaid).
  • DDP (Delivered Duty Paid).

In e-commerce, the most commonly used incoterms are DAP (or DDU) and DDP.

With DAP, the seller supports the entire transport from the departure of the goods from his premises to the buyer's address, only the unloading and the import formalities are the responsibility of the buyer.

With DDP, the seller takes charge of the entire transport from the departure of the goods from his premises to the place of delivery designated by the buyer, which includes taking charge of all formalities, rights and taxes.

Incoterms are inseparable from a place (address, city, etc.) which generally designates the place where the goods are deemed to have been delivered by the seller, i.e. the point where the risks are transferred to the buyer.

Example of wording of the incoterm on a commercial invoice:
Incoterm: DDP Reims

In the context of transport via Boxtal, the incoterm to be indicated is always DAP.