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Inland Freight
Terms filed under Inland Freight.
Inland Freight
EXW, FCA, and the Handover Problem at the Seller's Dock
TermEXW (Ex Works) and FCA (Free Carrier)
RiskEXW: risk passes when goods are made available at the seller's premises, not loaded. FCA: risk passes when goods are delivered to the carrier nominated by the buyer at a named place.
CostEXW: buyer bears all costs from seller's premises, including loading and main carriage. FCA: seller bears costs up to delivery to carrier; buyer bears main carriage, insurance, and duty.
ModeAny mode (road, rail, air, sea, multimodal).
In international trade, the moment goods leave the seller's control is a critical point where risk and responsibility shift.
Inland Freight
DAP and DPU: The One Letter That Changes Who Unloads
TermDAP (Delivered at Place) and DPU (Delivered at Place Unloaded)
RiskUnder DAP, risk passes when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading at the named place. Under DPU, risk passes after the goods are unloaded from the arriving means of transport at the named place.
CostThe seller bears all costs to the named place, including main carriage and, under DPU, unloading. The buyer bears import duty, taxes, and customs clearance, unless otherwise agreed.
ModeAny mode of transport, including sea, air, road, rail, and multimodal.
DAP and DPU are two Incoterms rules that differ by a single letter but allocate a critical task: unloading.
Inland Freight
The Named Place Is the Whole Point of Every Incoterm
TermIncoterms 2020 rules, with emphasis on the named place in each rule
RiskDepends on the specific Incoterm; risk passes at the named place or when goods are delivered to the first carrier, loaded on board, or made available at destination
CostVaries by rule: seller pays costs up to the named place or port; buyer pays thereafter, except DDP where seller pays duty
ModeAny mode for EXW, FCA, CPT, CIP, DAP, DPU, DDP; sea and inland waterway only for FAS, FOB, CFR, CIF
Incoterms are a set of internationally recognized rules published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in the delivery of goods.
Inland Freight
Inland Carriage and Where It Fits in an Incoterm Choice
TermInland carriage as a component of Incoterms rules (e.g., FCA, CPT, CIP, DAP, DPU, DDP)
RiskDepends on the chosen Incoterm: for FCA, risk passes when goods are delivered to the carrier at the named place; for CPT/CIP, risk passes when goods are handed to the first carrier; for DAP/DPU, risk passes at the named destination; for DDP, risk passes at the named destination but seller bears all costs including duty.
CostVaries by rule: under FCA, buyer pays main carriage and insurance; under CPT/CIP, seller pays main carriage and insurance; under DAP/DPU, seller pays main carriage and insurance but not duty; under DDP, seller pays all costs including duty.
ModeAny mode, including inland (road, rail, barge) and sea/air where applicable.
Inland carriage is the movement of goods by road, rail, or barge between a seaport or airport and an inland point, or entirely within a country or customs territory.
Inland Freight
Commercial Invoice, Packing List, and the Paperwork Triangle
TermCommercial Invoice, Packing List, and Customs Documentation (the Paperwork Triangle)
RiskRisk transfer is not determined by the commercial invoice or packing list; it is set by the Incoterms rule in the sales contract. For example, under FOB risk passes when goods are on board the vessel at the port of shipment; under CIF risk also passes at shipment, but the seller must arrange and pay for carriage and insurance to the named destination; under DAP risk passes at the named place of destination ready for unloading; under DDP risk passes at the named place of destination after import clearance. The paperwork triangle documents the transaction but does not itself move risk.
CostThe Incoterms rule allocates freight, insurance, and duty costs. Under EXW the buyer bears all costs from the seller's premises; under FCA, FOB, and FAS the buyer pays main carriage and insurance; under CFR and CIF the seller pays main carriage and, under CIF, insurance, while the buyer pays import duty and destination charges unless otherwise agreed; under DAP the seller pays carriage to the named destination but the buyer pays import duty and clearance; under DDP the seller pays carriage, import duty, and clearance. The commercial invoice and packing list must be consistent with the chosen rule.
ModeAny mode. The paperwork triangle applies to sea, inland waterway, road, rail, air, and multimodal shipments. Incoterms 2020 rules are grouped for any mode or modes (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and for sea and inland waterway (FAS, FOB, CFR, CIF). The commercial invoice and packing list are mode-neutral, but the transport document and insurance certificate vary by mode and by the Incoterms rule.
Every international shipment moves on a triangle of paperwork: the commercial invoice, the packing list, and the transport document.
Inland Freight
Export Packing and Why the Carrier Cares About It
TermExport packing and its relationship to carrier liability and Incoterms
RiskRisk of loss or damage to goods passes from seller to buyer at the point specified by the chosen Incoterm (e.g., on delivery to the first carrier, on loading, or on arrival). Packing adequacy is the seller’s responsibility until that point; thereafter, the buyer bears risk, but carrier liability may be limited by the contract of carriage and international conventions.
CostThe seller pays for packing as part of its obligation to deliver goods in a condition fit for carriage, unless the Incoterm shifts specific loading or stowage costs to the buyer. Main freight, insurance, and duty costs are allocated according to the Incoterm and the contract of sale.
ModeAny mode (sea, inland, air, rail, road, multimodal), though packing requirements vary by mode and handling environment.
Export packing is the set of physical measures a seller takes to prepare goods for international transport.
Inland Freight
Customs Valuation: What Counts Toward the Declared Value
TermCustoms valuation (transaction value method)
RiskRisk transfer is separate from customs valuation; it is determined by the sales contract and Incoterms, not by customs value.
CostThe importer bears duty and taxes; the seller bears costs up to the agreed Incoterm delivery point; freight and insurance costs may be included in the customs value depending on the Incoterm.
ModeAny (sea, air, inland, rail, multimodal)
Customs valuation is the process of determining the monetary worth of imported goods for the purpose of calculating customs duties and taxes.
Inland Freight
Duty Drawback and Getting Money Back on Re-Exports
TermDuty drawback
RiskNot applicable; drawback is a customs refund mechanism, not a sales term, so risk transfer is governed by the underlying sale contract and its Incoterm.
CostThe importer or exporter who paid the import duty and later re-exports, destroys, or substitutes the goods; refund is claimed by the party named on the import entry or its authorized agent.
ModeAny mode (sea, air, rail, road, or multimodal) because drawback follows the imported goods, not the transport mode.
Duty drawback is a customs procedure that refunds import duties, taxes, and fees when imported goods are later re-exported, destroyed, or used in a way that qualifies under the rules.