INCOTERMS 2020 used in Eurotools ltd

Frequently Used Delivery Terms at Eurotools ltd are:

CPT (Carriage paid to)

Seller (for example Eurotools) is responsible for delivering the goods to a named place of destination and pays for the carriage to that point. However, the risk transfers to the buyer once the goods are handed over to the first carrier. This offers customers predictability, and peace of mind during international shipments.

CIF (Cost, Insurance, and Freight) and CFR (Cost and Freight)

For exports to Asian and African countries, Eurotools often utilizes CIF and CFR terms. Under these terms, the seller is responsible for the costs of transporting goods to the destination port. Specifically, CIF includes insurance coverage for the goods during transit, while CFR does not.​

FOB (Free On Board)

When importing goods from Asian countries, Eurotools prefers the FOB term. This means the seller is responsible for the goods until they are loaded onto the shipping vessel at the port of departure. After this point, the buyer assumes responsibility for transportation and associated risks.​

DDP (Delivered Duty Paid)

For domestic transportation within Slovakia using the company's own vehicles, Eurotools applies the DDP term. Under DDP, the seller bears all costs and risks associated with delivering the goods to the agreed-upon location, including customs duties and taxes.​

DAP (Delivered At Place)

In cases of exporting to African countries and the United Kingdom, Eurotools uses the DAP term. This term indicates that the seller is responsible for delivering the goods to a specified location in the buyer's country, excluding the costs and responsibilities of import clearance and payment of customs duties and taxes.​

EXW (Ex Works) Martin

The most frequently used term by Eurotools is EXW Martin. Under EXW, the buyer takes responsibility for all transportation costs and risks from the seller's premises in Martin.

Differences Between Incoterms® 2010 and Incoterms® 2020

The International Chamber of Commerce (ICC) introduced several key changes in the Incoterms® 2020 update: 

DAT Replaced by DPU: The term "Delivered at Terminal" (DAT) was replaced with "Delivered at Place Unloaded" (DPU) to clarify that delivery can occur at any location, not just a terminal.

Insurance Coverage Adjustments: While CIF maintains the same insurance requirements as in Incoterms® 2010, the CIP term now requires a higher level of insurance coverage, reflecting the need for greater protection in certain transactions. 

Allowance for Own Transportation: Incoterms® 2020 recognizes that sellers or buyers may use their own transportation methods, such as trucks or planes, for delivering goods, which was not explicitly addressed in the 2010 version. 

Enhanced Security Requirements: The updated terms place a greater emphasis on security, outlining specific responsibilities for both parties to ensure compliance with safety regulations during transportation.

Clarified Cost Allocation: Incoterms® 2020 provides a more detailed breakdown of cost responsibilities between buyers and sellers, aiming to reduce misunderstandings and disputes over expenses.

By implementing various delivery terms under Incoterms® 2020, the Eurotools company ensures efficient and transparent operations in the global market.