Incoterms, or International Commercial Terms, are rules that help clearly define who is responsible for the costs and risks involved in the transportation of goods in international transactions. They establish the responsibilities of both the seller and the buyer, from the departure of the goods until delivery at the destination.
Created by the International Chamber of Commerce, Incoterms are regularly updated to adapt to changes in global trade. They are widely used worldwide to ensure that commercial transactions occur fairly and efficiently.
The seller is only responsible for making the goods available to the buyer at the seller’s premises or another agreed-upon place, not responsible for export customs clearance or loading the goods onto any vehicle. Usable for any mode of transport.
Note: Since the foreign buyer may not have the legal capacity to handle export customs clearance in the country, it is implied that the seller will take care of this under their own expense and risk in the case of Brazilian exports.
The seller fulfills their obligations and their responsibility ends when the goods, cleared for export, are delivered to the carrier or another person designated by the buyer, at a named place in the country of origin. Usable for any mode of transport.
The buyer and seller may use their own transport for parts of the journey.
The seller fulfills their obligations when the goods are placed, cleared for export, alongside the ship designated by the buyer, at the named port of shipment.
Usable exclusively for sea transport (maritime or inland waterway).
The seller fulfills their obligations and their responsibility ends when the goods, cleared for export, are delivered on board the ship at the port of shipment named by the buyer.
Usable exclusively for sea transport (maritime or inland waterway).
In addition to bearing the obligations and risks of the FOB term, the seller contracts and pays for the freight and necessary costs to transport the goods to the agreed destination port.
Usable exclusively for sea transport (maritime or inland waterway).
In addition to bearing the obligations and risks of the FOB term, the seller contracts and pays for the freight, costs, and insurance related to transporting the goods to the agreed destination port.
Usable exclusively for sea transport (maritime or inland waterway).
In addition to bearing the obligations and risks of the FCA term, the seller contracts and pays for the freight and necessary costs to transport the goods to the agreed destination place.
Usable for any mode of transport.
In addition to bearing the obligations and risks of the FCA term, the seller contracts and pays for the freight, costs, and insurance related to transporting the goods to the agreed destination place.
Usable for any mode of transport.
The seller fulfills their obligations and their responsibility ends when the goods are placed at the disposal of the buyer, at the agreed time or within the agreed period, at a specific location in the destination country, unloaded from the transport vehicle but not cleared for import.
Usable for any mode of transport.
This term replaces DAT, with the difference that DAT specified delivery at cargo terminals, while DPU can be used at terminals or any other designated location (e.g., the buyer’s warehouse).
The seller fulfills their obligations and their responsibility ends when the goods are made available to the buyer, at the agreed time or within the agreed period, at a place in the destination country, ready to be unloaded from the transport vehicle and not cleared for import.
Usable for any mode of transport.
The seller fulfills their obligations and their responsibility ends when the goods are made available to the buyer, at the agreed time or within the agreed period, at the designated destination location in the importing country, not unloaded from the transport vehicle. The seller, in addition to customs clearance, assumes all risks and costs, including taxes, fees, and other charges related to the importation.
Usable for any mode of transport.
Note: Because the foreign seller does not have the legal capacity to handle customs clearance for the entry of goods into the country, this term cannot be used for Brazilian imports. Instead, DPU or DAP should be chosen if preferring a condition regulated by ICC.
Translated from Diário Oficial da União (DOU): Resolução nº 16, de 2 de Março de 2020
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