Appendix 3, IPP20

Primary Shipping
Terms
Code

UW-Madison FOB Terms

Files Claims for
Processes
Ownership Transfer
loss or damage Freight invoices

Who pays the

Freight Carrier

Document date: 05/02/03

Responsible for
freight costs

FOB Destination,
Freight Prepaid &
allowed (vendor
responsible for
freight costs)

UW takes title upon

delivery.

FOB Destination,
Freight Prepaid and
Added

UW takes title upon

delivery.

Vendor

FOB Destination,
Freight Collect

UW takes title upon

delivery.

FOB Installed

UW takes title upon

completion of installation.

FOB Installed,
Freight Paid by
Purchaser (UW)

UW takes title upon

completion of installation.

See order text for

FOB terms

UW must specify in order UW must specify in UW must specify UW must specify UW must specify
text
order text
in order text
in order text
in order text

Training/Consultant
Services

N/A

N/A

Service/Maintenance

UW must specify

UW must specify

FOB Shipping Point,

Freight Prepaid &
UW takes title at shipping
allowed (vendor
point.
responsible for
freight costs)

UW (Purchaser)

Vendor

Vendor

Vendor

FOB Shipping Point,

UW takes title at pick-up
Pick-up by UW
point.
Dept.

UW (Purchaser)

UW (Purchaser)

UW (Purchaser)

UW (Purchaser)

FOB Shipping Point,

UW takes title at shipping
Freight Prepaid and
point.
Added

UW (Purchaser)

Vendor

Vendor

UW (Purchaser).
Vender invoices
UW for freight

FOB Shipping Point, UW takes title at shipping

Freight Collect
point.

UW (Purchaser)

UW (Purchaser)

UW (Purchaser)

UW (Purchaser)

Vendor

Vendor

Vendor

Vendor

Vendor

UW (Purchaser).
Vendor invoices
UW for freight
cost

Vendor

UW (Purchaser)

UW (Purchaser)

UW (Purchaser)

Vendor

Vendor

Vendor

Vendor, in absence
of any other
arrangement

UW (Purchaser)

Either, must be
specified by UW.

UW (Purchaser)
pays vendor or
carrier. UW must
specify.

Vendor

Vendor

N/A

N/A

UW must specify UW must specify

N/A

UW must specify

Appendix 3, IPP20

UW-Madison FOB Terms

Notes

Ins. Cert. Required see

IPP 12
Ins. Cert. Required see
IPP 12
Alert Risk Mgmnt on ALL
imports or high $ domestic
orders
See PPP 30

See PPP 7
Alert Risk Mgmnt on ALL
imports or high $ domestic
orders
Alert Risk Mgmnt on ALL
imports or high $ domestic
orders
Alert Risk Mgmnt on ALL
imports or high $ domestic
orders
Alert Risk Mgmnt on ALL
imports or high $ domestic
orders

Document date: 05/02/03

Ocean Freight Incoterms

299105751.xls Ocean Incoterms

Incoterms or terms of international commerce are used in "contracts of sale" to provide a set of rules governing the delivery responsibilities of a seller and a buyer engaged in international
trade. They define when the seller has completed his obligation to deliver the goods and the risk for loss of or damage to the goods, as well as the costs relating to the goods, passes from
the seller to the buyer. The simplified chart below shows generally how the responsibilities related to arranging and paying for the phases of an international shipment are divided between
the seller/exporter and the buyer/importer.
Phases
(Ocean Freight)

Incoterm
A.

EXW*
Ex Works...
(named place of origin)

B.

FCA*
Free Carrier...
(named place of origin)

C.

3
ORIGIN

7
8
9
10
11
12
MAIN
DESTINATION
Pick-up
Export
Delivery
Loading FREIGHT Discharge
Customs
Door
Documents Handling &
to
Vessel/ OCEAN Port of Import In Bond Transportation
Clearance
Seller/
Licenses Container Port of
Export
Port
Country of
Transit
to Port of
Container
Agency
Exporter
Etc.
Stuffing
Export Customs Charges
Destination Documents
Entry
Stripping Releases

13

14

15

Duty
and/or
Taxes

Handling
and
Transfer

Delivery
Door
Buyer/
Importer

Buyer/
Buyer/
Buyer/
Buyer/ Buyer/ Buyer/ Buyer/
Importer Importer Importer ImporterImporterImporterImporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Buyer/
Buyer/
Buyer/
Buyer/
Importer Importer Importer Importer Importer

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Buyer/ Buyer/
Exporter Exporter ExporterImporterImporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Buyer/
Buyer/
Buyer/
Buyer/
Importer Importer Importer Importer Importer

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Seller/ Buyer/
Exporter Exporter ExporterExporterImporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Buyer/
Buyer/
Buyer/
Buyer/
Importer Importer Importer Importer Importer

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Seller/ Seller/
Exporter Exporter ExporterExporterExporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Buyer/
Buyer/
Buyer/
Buyer/
Importer Importer Importer Importer Importer

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Seller/ Seller/
Exporter Exporter ExporterExporterExporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Buyer/
Buyer/
Buyer/
Buyer/
Buyer/
Importer Importer Importer Importer Importer

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Seller/ Seller/
Exporter Exporter ExporterExporterExporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Buyer/
Buyer/
Seller/
Seller/
Exporter Importer Importer Exporter Exporter

Seller/
Seller/
Exporter Exporter

Seller/
Seller/ Seller/ Seller/ Seller/
Exporter Exporter ExporterExporterExporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Seller/
Seller/
Seller/
Seller/
Exporter Exporter Exporter Exporter Exporter

FAS
Free Alongside Ship...
(named port of shipment)

FOB
Free On Board...
(named port of shipment)
D. CFR
Cost and Freight...
(named port of destination)

CIF
Cost, Insurance and Freight...
(named port of destination)
E.

CPT*
Carriage Paid To...
(named place of destination)

CIP*
Carriage and Insurance Paid To..
(named place of destination)
F.

DDU* (1)
Delivered Duty Unpaid...
(named place of destination)

G. DDP*
Delivered Duty Paid...
(named place of destination)

* This term can be used for all modes of transportation.

(1) To avoid misunderstandings, the Seller/Exporter and the Buyer/Importer should clarify in writing if the destination charges include the Customs clearance related fees
For more detailed and accurate information see "Incoterms 2000" or "Guide to Incoterms" or contact the International Chamber of Commerce @ 212-206-1150.)

Ocean Freight Incoterms

299105751.xls Ocean Incoterms

299105751.xls Air Incoterms

Air Freight Incterms

Incoterms or terms of international commerce are used in "contracts of sale" to provide a set of rules governing the delivery responsibilities of a seller
and a buyer engaged in international trade. They define when the seller has completed his obligation to deliver the goods and the risk for loss of or
damage to the goods, as well as the costs relating to the goods, passes from the seller to the buyer. The simplified chart below shows generally how the
responsibilities related to arranging and paying for the phases of an international shipment are divided between the seller/exporter and the
buyer/importer.
Phases
1
2
3
4
5
6
7
8
9
(Air Freight)
ORIGIN
MAIN
DESTINATION
Pick-up
Export
Export
FREIGHT
Handling/
Customs
Delivery
Door
Documentation Terminal
Customs
AIR
Transfer
Clearance
Duty
Door
Seller/
Licenses
Handling
Port of
Port of
Agency
and/or
Buyer/
Incoterm
Exporter
Etc.
Etc.
Export
Entry
Releases
Taxes
Importer
A. EXW*
Ex Works...
(named place of origin)

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

B. FCA*
Free Carrier...
(named place of origin)

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

Buyer/
Importer

C. CPT*
Carriage Paid To...
Seller/
(named place of destination)
Exporter
CIP*
Carriage and insurance paid to..
(named place of destination)

D. DDU* (1)
Delivered Duty Unpaid...
(named place of destination)

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Buyer/
Importer

Buyer/
Importer

Seller/
Exporter

E. DDP*
Delivered Duty Paid...
(named place of destination)

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

Seller/
Exporter

* This term can be used for all modes of transportation.

(1) To avoid misunderstandings, the Seller/Exporter and the Buyer/Importer should clarify in writing if the destination charges including the Customs clearance,
terminal/handling fees and delivery are included in the DDU price
For more detailed and accurate information see "Incoterms 2000" or "Guide to Incoterms" or contact the Int'l Chamber of Commerce @ 212-206-1150

Air Freight Incterms

orter should clarify in writing if the destination charges including the Customs clearance,

299105751.xls Air Incoterms