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EXW, FOB, CIF, DDP Incoterms: Seller and Buyer Obligations

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Incoterms: EXW, FOB, CIF, DDP Responsibilities

EXW (Ex-Works) — Ex Works (named place)

Obligations of the Seller.

  • Delivery of the merchandise and necessary documents
  • Packing and packaging

Obligations of the Buyer.

  • Payment of goods
  • Internal freight (from factory to the place of export)
  • Customs (documents, permits, requirements, taxes)
  • Top costs coming export (maneuvers, storage, agents)
  • International freight (from the export place to the place of import)
  • Insurance
  • Top costs coming import (maneuvers, storage, agents)
  • Shipping and insurance (instead of importing place)

FOB (Free On Board) — Free On Board (named port of shipment)

Obligations of the Seller.

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Freight (factory to the place of export)
  • Customs (documents, permits, requirements, taxes)
  • Export formalities and costs (maneuvers, storage, agents)

Obligations of the Buyer.

  • Payment of goods
  • Freight and insurance (from the export place to the place of import)
  • Top costs coming import (maneuvers, storage, agents)
  • Customs (documents, permits, requirements, taxes)
  • Freight (instead of importing place)
  • Delays

CIF (Cost, Insurance and Freight) — Cost, Insurance and Freight

Obligations of the Seller.

  • Deliver merchandise and necessary documents
  • Packing and crating
  • Freight (factory to the place of export)
  • Customs (documents, permits, requirements, taxes)
  • Top costs coming export (maneuvers, storage, agents)
  • Freight and insurance (from the export place to the place of import)

Obligations of the Buyer.

  • Payment of goods
  • Top costs coming import (maneuvers, storage, agents)
  • Customs (documents, permits, requirements, taxes)
  • Freight and insurance (instead of importing place)
  • Delays

DDP (Delivered Duty Paid) — Delivered Duty Paid (named place)

Note: Your land is equivalent to DDU, but the buyer must perform the customs clearance of import.

Obligations of the Seller.

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Transport (factory to the place of export)
  • Customs (documents, permits, requirements, taxes)
  • Top costs coming export (maneuvers, storage, agents)
  • Freight (from the export place to the place of import)
  • Insurance
  • Top costs coming import (maneuvers, warehousing, agents)
  • Customs (documents, permits, requirements, taxes)
  • Carriage and insurance (instead of importing place)
  • Delays

Buyer Obligation

  • Paying for goods

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