INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment.
EXW – EX WORKS (… named place of delivery)
The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination.
FCA – FREE CARRIER (… named place of delivery)
The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination.
CPT – CARRIAGE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage.
CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance.
DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination)
The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer’s disposal at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
DAP – DELIVERED AT PLACE (… named place of destination)
The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place.
DDP – DELIVERED DUTY PAID (… named place)
The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.
FAS – FREE ALONGSIDE SHIP (… named port of shipment)
The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage.
FOB – FREE ON BOARD (… named port of shipment)
The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.
CFR – COST AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage.
CIF – COST INSURANCE AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.
Packing Quick Tips (Packing QT)Details
- Gather packing supplies before you start. There’s nothing more frustrating, then having to stop half-way through a packing session in order to get more supplies.
- Packed boxes should weigh less than 50 pounds.
- Pack heavier items on the bottom.
- Stuff socks, scarves, pillow cases and other small fabric items in holes and crevices in boxes – just make sure you keep pairs of socks together!
- Make sure all boxes can close properly and be sealed so the tops are flat. If you over-pack a box, you risk damage to the contents.
- Pack small items in small boxes and place them into a large box. Label all boxes, large or small. For more information on boxes.
- Small, loose items should be boxed or bagged and sealed securely before placing into a larger box.
- If moving liquids, either transfer them into a sealable container or make sure the lid is secured by taping it down, then put it into a waterproof bag, seal the bag then place it upright into a box. Clearly mark the box with arrows and "This End Up". Also, check which items should not be packed – items that your mover will not move.
- Keep an inventory list of each box and its contents. This will be necessary if a box goes missing and you need to make a claim.
- Keep clothing in dresser drawers.
- Keep a box labeled "Load last, unload first" for the essentials you’ll need when you arrive.
- Keep important records with you – Do not move them with the rest of your household goods. If you cannot take them with you in the car, then send them on ahead with a secure courier company.
- Tape down anything that moves (except for the cat)!
- Fill free spots with lighter linens. This can be done with your washer and dryer, and the vegetable crisper in the refrigerator.
- As much as possible, keep items in their proper places. For example, when packing the silverware/flatware, keep it in its’ tray then tape bubble wrap around it to secure the contents. This is easier than sorting out all those pieces after your move.
- Tape screws, bolts and other loose items to underside of furniture. Make sure you bag them first.
- Keep tools you’ll need to reassemble furniture in a separate box that is clearly marked. I usually keep an all-purpose screwdriver in the glove compartment of our car for just such purposes. There’s nothing worse than arriving at your new home late at night, wanting to put the bed together and not knowing where the screwdriver is.
- Do not use standard garbage bags! They rip and tear too easily. If you’re going to pack linens and clothing in garbage bags, purchase the thicker, heavy ones to ensure they don’t burst during the move. Or double up. Some moving companies don’t like you using garbage bags, so do so minimally. The great thing about garbage bags full of clothing is that they can be squished into nooks and holes that exist on the truck, thereby protecting furniture and using less space. Just limit how many you use.
- Keep items from the same room together as much as possible. This will make it easier to sort the contents after you move.
- Get everyone involved by making a task list, then dividing out the jobs that each person can do. Organizing your household will not only save you time and energy, but will make your whole family feel like part of this adventure.
- Get started now! It’s never too late to plan, sort and start packing.