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1. Incoterms 2010
Incoterms 2010 are a set of international commercial terms published by the International Chamber of Commerce (ICC) that define the responsibilities and risks associated with the delivery of goods in international trade. These terms are widely used in international sales contracts and help to clarify the obligations, costs, and risks involved in the transportation and delivery of goods. They provide a common language and set of rules that facilitate international trade by establishing clear expectations and responsibilities for both buyers and sellers. Understanding and properly applying the appropriate Incoterms can help to minimize disputes, reduce costs, and ensure a smooth and efficient transaction. Overall, Incoterms 2010 play a crucial role in facilitating global trade and promoting transparency and consistency in international commercial transactions.
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2. EXW (Ex Works; 공장인도/지정인도장소)
EXW (Ex Works) is one of the Incoterms 2010 that defines the seller's minimum obligation in an international sale transaction. Under EXW, the seller's responsibility is to make the goods available at their own premises (e.g., factory, warehouse) or a designated location, and the buyer is responsible for all subsequent costs and risks associated with the transportation and delivery of the goods. This term places the maximum amount of responsibility on the buyer, as they must arrange and pay for the entire transportation process, including loading the goods onto the vehicle, customs clearance, and delivery to the final destination. EXW is often used when the buyer has the necessary resources and expertise to handle the logistics of the shipment, or when the seller wants to minimize their involvement in the transportation process. While EXW can be advantageous for the seller in terms of reduced responsibilities and costs, it is important for the buyer to carefully consider the risks and logistics involved in order to ensure a successful and cost-effective transaction.
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3. FAS (Free Alongside; 선측인도/지정 선착항)
FAS (Free Alongside Ship) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods alongside the vessel at the named port of shipment. Under FAS, the seller is responsible for clearing the goods for export and delivering them to the named port, where they must be placed alongside the vessel. The buyer is then responsible for loading the goods onto the vessel and all subsequent costs and risks. FAS is often used for commodities or bulk cargo that can be easily loaded directly onto the vessel. It is particularly useful when the buyer has the capability to handle the loading process, or when the seller wants to minimize their involvement in the logistics of the shipment. However, FAS places a higher level of responsibility on the buyer compared to some other Incoterms, as they must arrange and pay for the loading of the goods onto the vessel. Overall, FAS can be a suitable option when the buyer has the necessary resources and expertise to manage the loading and transportation of the goods.
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4. FOB (Free On Board; 본선인도/지정 선적항)
FOB (Free On Board) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods onto the vessel at the named port of shipment. Under FOB, the seller is responsible for clearing the goods for export and delivering them to the named port, where they must be loaded onto the vessel. The buyer is then responsible for all subsequent costs and risks, including the cost of loading the goods onto the vessel. FOB is a commonly used term in international trade, as it provides a clear delineation of responsibilities between the buyer and seller. It is particularly useful when the seller has the capability to handle the loading process, or when the buyer wants to have more control over the transportation and logistics of the shipment. However, FOB places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the loading of the goods onto the vessel. Overall, FOB can be a suitable option when the seller has the necessary resources and expertise to manage the loading and transportation of the goods.
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5. CFR (Cost and Freight; 운임포함/지정 목적항)
CFR (Cost and Freight) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to the named port of destination, with the cost of freight paid by the seller. Under CFR, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named port of destination, and delivering the goods onto the vessel. The buyer is then responsible for all subsequent costs and risks, including the cost of unloading the goods from the vessel and any additional transportation to the final destination. CFR is often used when the seller has the capability to handle the transportation logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders or carriers, or when the buyer wants to minimize their involvement in the transportation process. However, CFR places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation of the goods to the named port of destination.
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6. CIF (Cost, Insurance and Freight; 운임, 보험료포함/지정 목적항)
CIF (Cost, Insurance and Freight) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to the named port of destination, with the cost of freight and insurance paid by the seller. Under CIF, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named port of destination, and arranging and paying for the minimum insurance coverage required to protect the goods during transit. The buyer is then responsible for all subsequent costs and risks, including the cost of unloading the goods from the vessel and any additional transportation to the final destination. CIF is often used when the seller has the capability to handle the transportation and insurance logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders, carriers, and insurance providers, or when the buyer wants to minimize their involvement in the transportation and insurance process. However, CIF places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation and insurance of the goods to the named port of destination.
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7. FCA (Free Carrier; 운송인인도/지정인도장소)
FCA (Free Carrier) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named place, where the responsibility for the goods is transferred to the buyer or the buyer's designated carrier. Under FCA, the seller is responsible for clearing the goods for export and delivering them to the named place, where they must be loaded onto the carrier's vehicle. The buyer is then responsible for all subsequent costs and risks, including the cost of loading the goods onto the carrier's vehicle and any additional transportation to the final destination. FCA is often used when the buyer has the capability to handle the transportation logistics, or when the seller wants to minimize their involvement in the logistics of the shipment. It can be particularly useful in situations where the buyer has established relationships with freight forwarders or carriers, or when the seller wants to focus on their core business activities and leave the transportation and logistics to the buyer. However, FCA places a higher level of responsibility on the buyer compared to some other Incoterms, as they must arrange and pay for the transportation of the goods from the named place to the final destination.
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8. CPT (Carriage Paid To; 운송비지급/지정목적지)
CPT (Carriage Paid To) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named place, with the cost of carriage paid by the seller. Under CPT, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named place of destination, and delivering the goods to the carrier. The buyer is then responsible for all subsequent costs and risks, including the cost of unloading the goods from the carrier and any additional transportation to the final destination. CPT is often used when the seller has the capability to handle the transportation logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders or carriers, or when the buyer wants to minimize their involvement in the transportation process. However, CPT places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation of the goods to the named place of destination.
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9. CIP (Carriage and Insurance Paid To; 운송비, 보험료지급/지정목적지)
CIP (Carriage and Insurance Paid To) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named place, with the cost of carriage and minimum insurance coverage paid by the seller. Under CIP, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named place of destination, and arranging and paying for the minimum insurance coverage required to protect the goods during transit. The buyer is then responsible for all subsequent costs and risks, including the cost of unloading the goods from the carrier and any additional transportation to the final destination. CIP is often used when the seller has the capability to handle the transportation and insurance logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders, carriers, and insurance providers, or when the buyer wants to minimize their involvement in the transportation and insurance process. However, CIP places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation and insurance of the goods to the named place of destination.
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10. DAP (Delivered At Place; 목적지인도/지정목적지)
DAP (Delivered At Place) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named place of destination, with the seller bearing all costs and risks up to that point. Under DAP, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named place of destination, and delivering the goods to that location. The buyer is then responsible for any customs clearance, unloading, and further transportation to the final destination. DAP is often used when the seller has the capability to handle the transportation logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders or carriers, or when the buyer wants to minimize their involvement in the transportation process. However, DAP places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation of the goods to the named place of destination.
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11. DAT (Delivered At Terminal; 터미널인도/지정 목적항 또는 지정 터미널)
DAT (Delivered At Terminal) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named terminal at the port or place of destination, with the seller bearing all costs and risks up to that point. Under DAT, the seller is responsible for clearing the goods for export, arranging and paying for the transportation of the goods to the named terminal, and unloading the goods from the means of transport at the terminal. The buyer is then responsible for any further customs clearance, handling, and transportation to the final destination. DAT is often used when the seller has the capability to handle the transportation and unloading logistics, or when the buyer wants the seller to take on more responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders, carriers, and terminal operators, or when the buyer wants to minimize their involvement in the transportation and unloading process. However, DAT places a higher level of responsibility on the seller compared to some other Incoterms, as they must arrange and pay for the transportation of the goods to the named terminal and unload them there.
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12. DDP (Delivered Duty Paid; 관세지급인도/지정목적지)
DDP (Delivered Duty Paid) is an Incoterms 2010 rule that defines the seller's responsibility to deliver the goods to a named place of destination, with the seller bearing all costs and risks, including the payment of any import duties and taxes. Under DDP, the seller is responsible for clearing the goods for both export and import, arranging and paying for the transportation of the goods to the named place of destination, and delivering the goods to the buyer's premises or a designated location. The buyer is not responsible for any of the costs or risks associated with the transportation and delivery of the goods. DDP is often used when the seller has the capability to handle the transportation, customs clearance, and import duties, or when the buyer wants the seller to take on the maximum level of responsibility for the delivery of the goods. It can be particularly useful in situations where the seller has established relationships with freight forwarders, customs brokers, and other service providers, or when the buyer wants to minimize their involvement in the logistics and administrative aspects of the transaction. However, DDP places the highest level of responsibility on the seller compared to other Incoterms, as they must arrange and pay for the transportation, customs clearance, and import duties for the goods.
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