Import
To bring goods from overseas into one's country.

Incoterms 2000
A set of rules for the interpretation of the most commonly used trade terms in foreign trade, recognised throughout the world, issued by the International Chamber of Commerce, as their publication 560. It is most strongly recommended that every exporter and importer has a copy of "Incoterms 2000". These are available from us, see our Bookshop page. The 13 trade terms are summarised very briefly here.

         - EXW  Ex Works (named place)
           The seller's only responsibility is to make the goods available at his premises, (ie works or factory). The buyer
           bears the full cost and risk involved in bringing the goods from there to the desired destination and the buyer
           must be able to carry out any required export formalities.
           The term represents the minimum obligation for the seller.

         - FCA  Free Carrier (named place).
           The Seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the
           charge of a carrier, or another person, named by the buyer at the named place or point.
           This term may be used for any mode of transport, including multi-modal transport.

         - FAS  Free Alongside Ship (named port of shipment)
           The seller fulfils his obligation to deliver when the goods are placed alongside the vessel at the named port of
           shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from
           that point. The seller is responsible to clear the goods for export.
           This term can only be used for sea or inland waterway transport and its correct use is only when using a
           chartered ship, or when goods are not containerised.

         - FOB  Free On Board (named port of shipment)
           The seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of
           shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from
           that point. The seller is responsible to clear the goods for export.
           This term can only be used for sea or inland waterway transport. This is probably the most commonly misused
           term in international trade. Its correct use now is only where the ship's rail is relevant to the transaction, such
           as when using a chartered ship, or when goods are not containerised. Obviously it cannot apply to airfreight.

         - CFR  Cost and Freight (named port of destination)
           The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk
           of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's
           rail in the port of shipment. The seller is responsible to clear the goods for export.
           This term very specifically requires the carriage of the goods in a "seagoing vessel".

         - CIF  Cost, Insurance and Freight (named port of destination)
             This term is similar to CFR but with the addition that the seller has to procure marine insurance against the
             buyer's risk of loss of or damage to the goods.
             This term very specifically requires the carriage of the goods in a "seagoing vessel".

         - CPT  Carriage Paid To (named place of destination)
             The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk
             of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been
             delivered into the custody of the carrier. 
             Being based on FCA, this term may be used for any mode of transport.

         - CIP  Cost and Insurance Paid to (named place of destination)
             This term is similar to CPT but with the addition that the seller has to procure marine insurance against the
             buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from
             the carrier to the buyer.
             Being based on FCA, this term may be used for any mode of transport.

         - DAF  Delivered at Frontier (named place)
           The seller must pay the costs and freight to bring the goods to a land frontier, but before the customs border
           of the adjoining country.
           This term is for land transport only.

         - DES  Delivered ex Ship (named port of destination)
           The seller makes the goods available to the buyer on board the ship at the destination port, and is responsible
           for all costs and risks until that point, as well as arrival within the given period.
           Typically this term would be used for bulk cargo on a chartered ship.

         - DEQ  Delivered ex Quay (named port of destination)
           Similar to DES but the seller must also arrange discharge onto the quay or wharf.

         - DDU  Delivered Duty Unpaid (named place of destination)
           The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the
           named place in the country of importation. The seller has to bear the risks and all costs and other charges of
           delivering the goods thereto, but not including duties and taxes. The buyer is responsible for customs
           clearance, and if he fails to do this, he is responsible for the consequences.
           This term may be used for all modes of transport.

         - DDP  Delivered Duty Paid (named place of destination)
           The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the
           named place in the country of importation, often the buyer's premises. The seller has to bear the risks and all
           costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.
           This term should not be used if the seller is unable directly or indirectly to obtain any necessary import licence
           or approval.
           This term may be used for all modes of transport.

         - C&F  Cost and Freight (named port of shipment)
           this abbreviation was changed in 1990 to CFR, but is still commonly used.

         - FIS  Free into Store
           an unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. This is
           similar in effect to DDP.

Insurance
A process whereby someone with a risk of something happening to their financial detriment (the assured) pays someone else (an underwriter) a fee (premium) to bear that risk on their behalf.

         - Insurance Certificate
           A certificate issued by the insurance underwriter giving details of a particular transaction which is held insured
           under an insurance policy.

         - Insurance Policy
           Contract of insurance

         - Marine insurance
           Insurance covering the international, and often local, transport of goods. Generally covers "all risks" plus war
           and strikes risks, and is taken out for 110% of the CIF/CIP value of the goods.