Incoterms

Incoterms are commercial clauses in contracts of carriage that determine between the sender and consignee who is responsible for the transport charges. The Incoterms is part of the contract of carriage, which is concluded between the shipper and the consignee before the goods are dispatched.
There are e.g. two types of franking:

1. If a shipment is “ex works”, the consignee must bear the transport costs. In the original sense, postage paid means that the recipient of the goods has to take care of the transport. This Incoterm is nothing more than a pickup clause.

2. If a shipment is marked as “carriage paid” or “carriage paid”, this means that the sender bears the freight costs.

In practice, there are often other costs to be settled. For example, the assumption of insurance, costs for any documents and certificates that may be required and the transfer of risk for the goods. (more on this under Incoterms )