Incoterms are international transport rights and duties of the buyer and seller. Incoterms are agreements on who arranges the transport (including costs and risks). The incoterms that are used the most are described below:
– Ex works (EXW)
The seller produces the goods and arranges the packaging. The buyer is responsible for the entire logistical process.
– Free on board (FOB)
The seller is responsible for the packaging, export license, warehouse costs and transport up to the aircraft. The buyer is responsible for the airfreight costs, import duties, warehouse costs of the receiving port and delivery costs.
– Deliverd at place (DAP)
The seller is responsible for the transport route to the destination. The buyer is responsible for the payment of import duties.
– Deliverd duty paid (DDP)
This is the counterpart of EXW. The seller is responsible for the entire process. In contradiction to DAP the import duties are also paid.
For further information see: http://www.icc.nl/english