5Dec05/12/2025

4 important Incoterms groups in international transactions

1. Group E – Delivery at seller's location (Ex works – EXW)
Incoterms group E are the simplest terms for the seller. Accordingly, the seller only needs to deliver the goods to the buyer at his location (usually a warehouse or factory). The buyer is fully responsible for transporting the goods from the point of delivery to the final destination. This means that the seller will not bear any shipping or insurance costs. 
Suitable for: Buyers with experience in shipping and handling import and export procedures.
Benefits: Seller bears less risk and cost.
Disadvantages: The buyer must manage all costs and risks from the point of delivery.

2. Group F – Delivery to first carrier

Group F includes terms such as Free Carrier (FCA), Free Alongside Ship (FAS), and Free On Board (FOB). With terms in this group, the seller is responsible for delivering the goods to the first carrier, but is not responsible for subsequent shipping costs.
Suitable for: Businesses that want the seller to take responsibility for delivering to a specific delivery point but don't want to take on long-term shipping risks.
Benefits: Reduces costs for sellers while still ensuring clear delivery responsibilities.
Disadvantage: The buyer still has to take care of shipping and related costs.

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3. Group C – Seller bears shipping costs, no risk

Group C terms, such as Cost and Freight (CFR), Cost, Insurance and Freight (CIF), Carriage Paid To (CPT), and Carriage and Insurance Paid To (CIP), require the seller to be responsible for the costs of transporting the goods to a specified delivery point. However, the seller is not responsible for the risks involved in the transport.
Suitable for: Buyers who want the seller to be responsible for shipping costs but do not want to take on the risk during shipping.
Benefits: Sellers control the shipping process, simplifying the transaction.
Disadvantage: Seller has to bear the shipping costs without absolute control.

4. Group D – Seller is responsible for delivering the goods to the final destination

Group D (which includes terms such as Delivered Duty Paid (DDP), Delivered at Place (DAP), Delivered at Terminal (DAT)) requires the seller to bear all responsibilities and costs associated with delivering the goods to the final destination, including shipping costs and import duties.
Suitable for: Buyers who want to minimize any responsibilities related to shipping and customs clearance.
Benefits: Buyers do not have to worry about any aspect of shipping and importing.
Disadvantages: The seller will bear a lot of costs and risks, as they have to ensure the goods arrive safely and on time.
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📧 Email: admin@vietsunlogistic.com
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by adminin TECHNICAL TERMINOLOGY

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