Incoterms 2020: cost sharing between Supplier (P) and Customer (C)
INCOTERM Modality Transport
Packaging and Verification
Loading at supplier's warehouse
Inland transportation at origin
Export customs formalities
Origin terminal costs
Main transportation
Transportation Insurance
Destination terminal costs
Import customs formalities
Inland transportation at destination
Unloading at customer's warehouse
EXW Multimodal
P
C
C
C
C
C
C
C
C
C
C
FCA Multimodal
P
P
P
P
C
C
C
C
C
C
C
FAS Sea
P
P
P
P
C
C
C
C
C
C
C
FOB Sea
P
P
P
P
P
P
C
C
C
C
C
CPT Multimodal
P
P
P
P
P
P
C
C
C
C
C
CFR Sea
P
P
P
P
P
P
C
C
C
C
C
CIP Multimodal
P
P
P
P
P
P
P
C
C
C
C
CIF Sea
P
P
P
P
P
P
P
C
C
C
C
DAP Multimodal
P
P
P
P
P
P
P
P
C
P
C
DPU Multimodal
P
P
P
P
P
P
P
P
C
P
P
DDP Multimodal
P
P
P
P
P
P
P
P
P
P
C
Incoterms Conditions
Given their importance, we proceed to treat them prior to the preparation of the offer, as a primary factor for said calculation.
conditions INCOTERMS (International Commerce Terms) are standards used in international trade to define the point of delivery and the responsibilities assumed by the buyer and seller. The functions of these terms are basically to determine:
Sharing of costs
The seller knows exactly until what moment and place he must assume the expenses caused by his sales contract and include them in the price.
The transfer of risk
The seller knows exactly until what moment and place he must assume the expenses caused by his sales contract and include them in the price.
Place where the goods will be delivered
The Incoterms indicate the specific place where the seller must deposit the merchandise and, consequently, the point at which the buyer must pick it up.
TheINCOTERMS, therefore, define up to which intermediate point the responsibilities of cost and risk in the physical delivery of the product reach:
