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Florida International University FCA, CPT and DAP Incoterms Discussion

I’m studying for my Marketing class and don’t understand how to answer this. Can you help me study?

Compare and contrast three incoterms. Explain why your choices are superior to your teammates when writing your comments.. PLEASE PROVIDE COMMENTS TO AT LEAST TWO OTHER CLASSMATES CONTRIBUTION AND SHOW LINKS WHERE THEY CAN GO TO GET MORE INFO.

reply 1

by Alannis Pacheco

The first incoterm is EXW, which stands for Ex Works. The term EXW means the buyer is responsible for all risks and costs, starting when the product is picked up from the seller until the products are delivered to their location. The seller is not responsible for loading the goods or clearing them for export.

Next is CIP, which stands for Carriage and Insurance Paid To. This is when the seller clears the goods for exporting and delivers them to the place of shipment. At this point, the risk is transferred to the buyer. The seller is also responsible for transportation costs and any insurance until the goods reach their destination.

Lastly is DPU, or Delivered at Place Unloaded. This is the only term where the seller has the task of unloading the goods. The seller is also expected to clear the goods for exporting and is responsible for any risks and costs associated with delivering and unloading.

Reply 2

by Alexia Cohen

The primary purpose of Incoterms is to define the responsibilities and costs between two parties correctly.

CFR: Cost and freight is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier.

DDP: Delivered duty paid is a delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.

DDU: Delivered Duty Unpaid is an old international trade term indicating that the seller is responsible for the safe delivery of goods to a named destination, paying all transportation expenses and assuming all risks during transport.

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