Incoterms - Responsibilities and Costs

Responsibilities and Costs Matrix, Primary Transportation Via Vessel (ocean or inland waterway)

Important: The categorization of tasks and costs below are typical, and may vary somewhat according to industry and port practice and/or by mutual agreement of the parties in their sales contract.
Legend: B--buyer, S--seller, *--may request assistance of other party, who must then assist
Party responsibility for action pays associated cost unless otherwise noted.

Action/Cost

EXW

FCA- shipper's premises

FCA- other place

FAS

FOB

FOB addl. svc.

CFR

CIF

CPT

CIP

DES

DEQ

DDU

DDP

Determine transportation mode(s) to be used (inform/ negotiate with trading partner).

B

B

S+B

S+B

S+B

S+B

S+B

S+B

S+B

S+B

S+B

S+B

S

S

Provide goods in conformity with sales contract.

S

S

S

S

S

S

S

S

S

S

S

S

S

S

Prepare commercial invoice and packing list.

S

S

S

S

S

S

S

S

S

S

S

S

S

S

Check, prepare & mark goods in conformity with contract.

S

S

S

S

S

S

S

S

S

S

S

S

S

S

Package goods adequately for all known transportation modes. modes.

S

S

S

S

S

S

S

S

S

S

S

S

S

S

Obtain export license or other export authorization if needed.

B*

S

S

S

S

S

S

S

S

S

S

S

S

S

Notify Buyer as to time and place of availability or delivery of goods.

S

S

S

S

S

S

S

S

S

S

S

S

S

S

Arrange pre-carriage (contract of carriage) from origin point to ocean carrier CARGO TERMINAL or intermediate point.

B

B*

S

S

S

S

S

S

S

S

S

S

S

S

Load pre-carriage conveyance at origin point.

B

S

S

S

S

S

S

S

S

S

S

S

S

S

Pay pre-carriage transportation.

B

B

S

S

S

S

S

S

S

S

S

S

S

S

Unload pre-carriage conveyance.

B

B

B

S

S

S

S

S

S

S

S

S

S

S

Arrange pre-shipment inspection if required.

B

B

B

B*

B*

B*

B*

B*

B*

B*

B*

B*

B*

B*

Obtain cargo insurance (institute marine cargo clauses c as minimum).

--

--

--

--

--

--

--

S

--

S

--

--

--

--

Engage & instruct freight forwarder.

B*

B*

B*

B

B

S

S

S

S

S

S

S

S

S

Pay terminal charges, if any, prior to loading of export vessel.

B

B

B

S

S

S

S

S

S

S

S

S

S

S

Arrange primary (export) transportation; obtain bill of lading.

B

B

B

B

B

S

S

S

S

S

S

S

S

S

Accomplish export clearance.

B*

S

S

S

S

S

S

S

S

S

S

S

S

S

Arrange & pay for loading of export vessel.

B

B

B

B

S

S

S

S

S

S

S

S

S

S

Prepare/obtain origin country documents required for destination customs clearance (e.g. customs invoice, consular invoice, certificate of origin).

B*

B*

B*

B*

B*

S

S

S

S

S

S

S

S

S

Pay ocean carrier basic transportation charge.

B

B

B

B

B

B

S

S

S

S

S

S

S

S

Canal passage, pilotage, towage and dockage fees, if not included in the carrier's basic transportation charge.

B

B

B

B

B

B

S

S

S

S

S

S

S

S

Unload vessel, including lighterage and wharfage, if not included in the carrier's basic transportation charge.

B

B

B

B

B

B

B

B

B

B

B

S

S

S

Pay terminal charges at destination port cargo terminal after goods are unloaded.

B

B

B

B

B

B

B

B

B

B

B

B

S

S

Obtain import license or import permit if required.

B

B

B

B

B

B

B

B

B

B

B

B

B

B

Arrange customs clearance (pay customs broker fee).

B

B

B

B

B

B

B

B

B

B

B

B

B

S

Pay customs duty and tax due upon importation.

B

B

B

B

B

B

B

B

B

B

B

B

B

S

Arrange and pay for on-carriage to final place of delivery.

B

B

B

B

B

B

B

B

B

B

B

B

S

S

Unload conveyance at final delivery point.

B

B

B

B

B

B

B

B

B

B

B

B

S

S

Responsibilities and Costs Matrix, Primary Transportation Via Aircraft (Air Freight)

Important: The categorization of tasks and costs below are typical, and may vary somewhat according to industry and port practice and/or by mutual agreement of the parties in their sales contract.
Legend: B--buyer, S--seller, *--may request assistance of other party, who must then assist
Party responsibility for action pays associated cost unless otherwise noted.

Action/Cost

EXW

FCA- shipper's premises

FCA- other place

CPT

CIP

DDU

DDP

Determine transportation mode(s) to be used (inform/ negotiate with trading partner).

B

B

S+B

S+B

S+B

S

S

Provide goods in conformity with sales contract.

S

S

S

S

S

S

S

Prepare commercial invoice and packing list.

S

S

S

S

S

S

S

Check, prepare & mark goods in conformity with sales contract.

S

S

S

S

S

S

S

Package goods adequately for all known transportation modes.

S

S

S

S

S

S

S

Obtain export license or other export authorization if needed.

B*

S

S

S

S

S

S

Notify buyer as to time and place of availability or delivery of goods.

S

S

S

S

S

S

S

Arrange pre-carriage ( contract of carriage) from origin point to air cargo terminal or other place, such as the airfreight forwarder's terminal.

B

B*

S

S

S

S

S

Load (origin point) pre-carriage truck (if not included in basic transportation charge).

B

S

S

S

S

S

S

Pay for pre-carriage transportation.

B

B

S

S

S

S

S

Unload pre-carriage truck (if not included in basic transportation charge).

B

B

B

S

S

S

S

Arrange pre-shipment inspection if required.

B*

B*

B*

B*

B*

B*

B*

Obtain cargo insurance, airfreight endorsement (minimum buyer's interest coverage, airport-to-airport)

--

--

--

--

S

--

--

Engage & instruct airfreight forwarder.

B*

B*

B*

S

S

S

S

Pay terminal charges, if any, at origin airport.

B

B

B

S

S

S

S

Arrange primary export transportation; obtain airwaybill.

B

B

B

S

S

S

S

Accomplish export clearance.

B*

S

S

S

S

S

S

Arrange & pay for loading of export aircraft (if this is not included in basic transportation charge).

B

B

B

S

S

S

S

Pay air carrier's basic transportation charge.

B

B

B

S

S

S

S

Prepare/obtain origin country documents required for destination customs clearance (e.g. customs invoice, certificate of origin, consular invoice, ).

B*

B*

B*

S

S

S

S

Pay take-off and landing fees if not included in the carrier's basic transportation charge.

B

B

B

S

S

S

S

Unload aircraft if not included in the carrier's basic transportation charge

B

B

B

B

B

S

S

Pay terminal charges at delivery airport after goods are unloaded from aircraft.

B

B

B

B

B

S

S

Obtain import license or import permit if required.

B

B

B

B

B

B

B

Arrange customs clearance (pay Customs Broker fee)

B

B

B

B

B

B

S

Pay customs duty and tax due upon importation.

B

B

B

B

B

B

S

Arrange and pay for on-carriage to final place of delivery.

B

B

B

B

B

S

S

Unload transportation carrier final delivery point.

B

B

B

B

B

S

S

Responsibilities and Costs Matrix, Primary Transportation Via Truck, Rail (ground transport)

Important: The categorization of tasks and costs below are typical, and may vary somewhat according to industry and port practice and/or by mutual agreement of the parties in their sales contract.
Legend: B--buyer, S--seller,*--may request assistance of other party, who must then assist
Party responsibility for action pays associated cost unless otherwise noted.

Action/Cost

EXW

FCA- shipper's premises

FCA- other place

CPT

CIP

DAF

DDU

DDP

Determine mode(s) of transportation to be used (inform/ negotiate with trading partner).

B

B

S+B

S+B

S+B

S+B

S

S

Provide goods in conformity with sales contract.

S

S

S

S

S

S

S

S

Prepare commercial invoice and packing list.

S

S

S

S

S

S

S

S

Check, prepare & mark goods in conformity with contract.

S

S

S

S

S

S

S

S

Package goods adequately for all known transportation modes.

S

S

S

S

S

S

S

S

Obtain export license or other export authorization if needed.

B*

S

S

S

S

S

S

S

Notify Buyer as to time and place of availability or delivery of goods.

S

S

S

S

S

S

S

S

If a pre-carrier is needed, arrange pre-carriage (contract of carriage) from origin to export carrier.

B

B*

S

S

S

S

S

S

Pay for pre-carriage, if any.

B

B

S

S

S

S

S

S

Load pre-carrier (truck, rail car or other mode) if there is one and loading is not included in basic transportation charge.

B

S

S

S

S

S

S

S

Unload pre-carriage conveyance, if any, and if not included in basic transportation charge).

B

B

B

S

S

S

S

S

Arrange pre-shipment inspection if required.

B*

B*

B*

B*

B*

B*

B*

B*

Obtain cargo insurance (basic buyer's interest coverage).

--

--

--

--

S

 

--

--

Engage & instruct freight forwarder, if any.

B*

B*

B*

S

S

S

S

S

Tolls and handling charges, if any, prior to loading of export carrier's conveyance.

B

B

B

S

S

S

S

S

Arrange primary (export) transportation; obtain bill of lading, waybill or other transport document.

B

B

B

S

S

S

S

S

Accomplish export clearance.

B*

S

S

S

S

 

S

S

Arrange & pay for loading of export conveyance (if this is not included in basic transportation charge).

B

B

B

S

S

S

S

S

Pay export carrier's basic transportation charge.

B

B

B

S

S

S

S

S

Prepare/obtain origin country documents required for destination customs clearance (e.g. customs invoice, certificate of origin, consular invoice)

B*

B*

B*

S

S

S

S

S

Pay road tolls and other passage fees to delivery point if not included in the carrier's basic transportation charge

B

B

B

S

S

S

S

S

Unload export carrier if not included in the carrier's basic transportation charge.

B

B

B

B

B

S

S

S

Pay terminal charges at delivery terminal after goods are unloaded.

B

B

B

B

B

S

S

S

Obtain import license or import permit if required

B

B

B

B

B

B

B

B

Arrange customs clearance (pay customs broker fee)

B

B

B

B

B

B

B

S

Pay customs duty and tax due upon importation.

B

B

B

B

B

B

B

S

Arrange and pay for on-carriage to final place of delivery.

B

B

B

B

B

B

S

S

Unload transportation carrier at final delivery point.

B

B

B

B

B

B

S

S