International shipments

To avoid misunderstandings due to different regulations, customs, and languages ​​in different countries, we refer to the Incoterms ("INternational COmmercial TERMS"), developed by the International Chamber of Commerce in Paris. These are universally recognized rules that clearly define obligations, responsibilities, and the distribution of risks between seller and buyer in international sales.

Incoterms provide uniform standards for the delivery of goods through eleven commercial terms, which are included in sales and shipping contracts.

First published in 1936, they have been updated several times (1953, 1967, 1976, 1980, 1990, 2000, 2010). The current version is the 2020 version, officially adopted by the ICC.

Depending on the obligations and risks between seller and buyer, Incoterms 2010 are divided into 4 groups:

• Group E (from “Ex”, departure)

It includes 1 acronym “Incoterms ExWorks / Ex Works”, in which the main responsibilities are borne by the buyer.

• Group F (from “Free”, frank)

It includes 3 acronyms, “Free Carrier”, “Free Alongside Ship”, “Free On Board”, in which the seller assumes the costs and risks of transport until the goods are delivered to the carrier, and from that moment the obligation passes to the buyer.

• group C (from “Cost” or “Carriage”)

It includes 4 acronyms, “Cost and Freight”, “Cost, Insurance and Freight”, “Carriage paid to…”, “Carriage and Insurance paid to…”, which assign the seller the costs of transportation to the established location, but not the related risks.

• Group D (from “Delivered”)

It includes 3 acronyms, “Delivered at Place / Reso Terminal”, “Delivered at Place / Reso non paduato”, “Delivered Duty Paid / Reso paduato” in which the highest responsibilities are assigned to the seller, which include transport costs and risks, up to delivery.

Meaning of individual terms depending on the jurisdiction of the different Incoterms clauses:

• Incoterms ExW (Ex Works / Ex Factory)

With the ExW Incoterms clause, the buyer assumes responsibility and costs for the entire transport, starting from the place where the goods are collected. However, it also includes various risks for the seller. This clause is currently under review.

• Incoterms FCA (Free Carrier / Franco Vettore)

With the FCA Incoterms clause, the seller delivers the goods to the point agreed with the buyer (e.g., terminal, warehouse, etc.) for delivery to the carrier. The seller is responsible for export customs clearance, but from then on, all responsibilities and costs are borne by the buyer.

• Incoterms FAS (Free Alongside Ship / Franco sotto bordo)

With the FAS Incoterms clause – a clause reserved for maritime transport – the seller assumes responsibility and costs of transport until the goods are delivered to the quay at the port of shipment.

• Incoterms FOB (Free On Board / Free on Board)

With the FOB Incoterms clause – a clause reserved for maritime transport – the seller assumes responsibility and costs until the goods are delivered on board the vessel, in addition to the customs clearance for export.

• Incoterms CFR (Cost and freight)

With the CFR Incoterms clause, the seller assumes the costs of transportation to the port of destination, while the responsibilities are borne by the buyer from the moment the goods are on board the vessel.

• Incoterms CIF (Cost Insurance and Freight)

With the CIF Incoterms clause, the seller assumes the responsibilities and costs of transportation to the port of destination.

• Incoterms CPT (Carriage paid to / Carriage paid to…)

With the CPT Incoterms clause—often used for air freight—the seller delivers the goods to the point agreed upon with the buyer (e.g., terminal, warehouse, etc.) for delivery to the carrier. The seller retains responsibility and costs for shipping to the place agreed upon with the buyer, as well as for export customs clearance.

• Incoterms CIP (Carriage and Insurance paid to / Carriage and Insurance paid to…)

With the CIP Incoterms clause—often used for air freight—the seller delivers the goods to the point agreed upon with the buyer (e.g., terminal, warehouse, etc.) for delivery to the carrier. The seller is responsible for and pays for shipping to the agreed upon location, as well as export customs clearance. The seller is also obligated to insure the goods.

• Incoterms DAT (Delivered at terminal / Returned to terminal)

With the DAT Incoterms clause, the seller assumes responsibility and costs for transporting the goods to the agreed-upon terminal (terminal, warehouse, dock, airport, etc.), which must be explicitly indicated, including any unloading or unloading costs. The buyer is responsible for import customs operations and related costs.

• Incoterms DAP (Delivered at Place / Returned to the destination location)

With the DAP Incoterms clause, the seller takes care of covering the responsibilities and costs of shipping to the agreed place, until the goods are ready for unloading, but not customs clearance, as this is the buyer's responsibility.

• Incoterms DDP (Delivered Duty Paid / Delivered Duty Paid)

With the DDP Incoterms clause – which is the opposite of the Ex Works Incoterms clause – the seller assumes responsibility and costs for all transportation to the place of destination, where the goods must be unloaded, including customs clearance.