Incoterms Swot Analysis

According to the International Chamber of Commerce (2010), Incoterms are grouped in four different categories which are explained thoroughly below:
Category E – Departure
The first category ‘’E’’ has only one trade term namely EXW (Ex Works). EXW represents the minimum obligation for the seller where he only makes the goods available to the buyer at the seller’s own premises. It is entirely up to buyer if he want to export the goods, but neither of the parties has any obligation in terms of export.
The contractual shipper on the waybill should be the buyer, bearing also the full risk from seller’s premises to the destination. EXW can be used for all types of transport.

Category F – Main Carriage Unpaid
The seller is required to deliver the

The buyer takes care for the costs from the point where the goods reach to the destination place. The transfer of the risk from the seller to the buyer occurs at the place of delivery once the goods are delivered from the seller to the freight forwarder. CPT can be used for all types of transport.
CIP – Carriage and Insurance Paid To
This term is quite close with the abovementioned (CPT) with its main difference being that the seller have to sign and pay an insurance for the goods that can be transferred to the buyer. Thus, the transfer of the risk from the seller to the buyer occurs at the place of delivery, while seller pays for transport and insurance to the destination. CIP can be used for all types of transport.
CFR – Cost and Freight
Seller is responsible to pay costs and freight to the named port of destination by providing the buyer with all the documents regarding customary transport, including clearing the goods for export. From the point the ship arrives to the port of destination the buyer takes care for all the costs. The transfer of the risk from the seller to the buyer occurs as soon as the goods have been disembark inside the ship. CFR can be used only for sea

The transfer of the risk from the seller to the buyer occurs once the goods have been unloaded. It is also buyer’s responsibility for clearing the goods for import. DAT can be used for all types of transport.
DAP – Delivered at Place
Seller is responsible to deliver the goods at the disposal of the buyer from any arriving means of transport, not unloaded, and at the named place of destination. The transfer of the risk from the seller to the buyer occurs once the goods are ready to unload at the agreed destination place. Import duties and formalities are under buyer’s responsibility. DAP can be used for all types of transport.
DDP – Delivered Duty Paid
This term denotes the maximum obligation for the seller, where being responsible to deliver the goods to the agreed destination and at the buyer's disposal. The seller also has to pay for all import duties and formalities. The transfer of the risk from the seller to the buyer occurs when the goods are available to the buyer, ready for unloading, at the agreed place of destination. DDP can be used for all types of