Delivery terms

Incoterms

Incoterms divide responsibility, cost and risk between seller and buyer during transport. Here we go through the terms PlastShop works with, so you know what applies from warehouse to delivery. PlastShop mainly uses EXW and can help with freight arrangements.

What are Incoterms?

Incoterms is short for International Commercial Terms, a set of eleven rules for allocating responsibility in international transport.

These three-letter abbreviations state who pays for transport and insurance, which place the transport runs from and to, whether loading and unloading are included, and when responsibility and risk pass between seller and buyer.

PlastShop mainly uses EXW as its term and can help with freight arrangements.

The terms in detail

EXW, Ex Works

The product is available at the seller's premises. The buyer carries the costs and the risks during transport, while the seller is responsible for giving the buyer access to the goods.

  • Ownership: Passes to the buyer at the seller's premises or collection point.
  • Insurance: The buyer needs insurance for the whole transport from the point of delivery.

FCA, Free Carrier

It is up to the seller to deliver the goods to the carrier contracted by the buyer at the agreed time and place.

  • Ownership: Passes when the buyer's first carrier takes over the goods.
  • Insurance: The buyer insures the transport; the seller up to the point of handover.

CPT, Carriage Paid To

The seller arranges export and carriage to the named place of destination, but the buyer carries the risk from the moment the goods are delivered to the first carrier.

  • Ownership: Passes when the first carrier takes over the goods.
  • Insurance: The buyer insures the transport; the seller up to the point of handover.

CIP, Carriage and Insurance Paid to

The seller carries all costs, insurance and carriage included, up to the named place of destination.

  • Ownership: The buyer gets full ownership once the goods have been delivered to the first carrier.
  • Insurance: The seller arranges insurance according to Institute Cargo Clauses (A).

DAP, Delivered At Place

The seller pays the costs and takes the risk of transporting the goods to an agreed address.

  • Ownership: Passes when the goods are ready to be unloaded at the agreed address.
  • Insurance: The seller takes out insurance to the destination.

DPU, Delivered at Place Unloaded

The seller carries the costs and the risk of transporting the goods to the agreed place of unloading. The seller arranges customs clearance and unloading; the buyer handles import clearance.

  • Ownership: Passes when the goods have been unloaded at the agreed place.
  • Insurance: The seller takes out insurance up to unloading.

DDP, Delivered Duty Paid

An extended version of DAP that includes customs clearance. The seller carries all costs and the risk of transporting the goods to the agreed address.

  • Ownership: Passes when the goods are ready to be unloaded.
  • Insurance: The seller takes out insurance to the destination.
Questions about delivery terms? We help you find the right term and can help with freight arrangements.