Incoterms (Official name “Incoterms 2010”) is the worldwide standard for international trade. These conditions concern the responsibility for the goods of both the buyer and the seller-in the different stages of the transportation process. Incoterms are worldwide accepted and used by governments, Legal authorities and traders in international commercial transactions. On the offer/order you will find which incoterm is applicable.
One of the simplest and most basic shipment arrangements places the minimum responsibility on the seller with greater responsibility on the buyer. In an EX-Works transaction, goods are basically made available for pickup at the shipper/seller’s factory or warehouse and “delivery” is accomplished when the merchandise is released to the consignee’s freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, export clearance and handling all other paperwork.
CIF (Cost, Insurance and Freight)
This arrangement similar to CFR, but instead of the buyer insuring the goods for the maritime phase of the voyage, the shipper/seller will insure the merchandise. In this arrangement, the seller usually chooses the forwarder. “Delivery” as above, is accomplished at the port of destination.