Using Incoterms for Domestic Sales

While Incoterms are primarily designed for international trade transactions, they can also be used for domestic sales, where it is necessary to define the responsibilities of buyers and sellers.

Benefits of Using Incoterms Domestically

The use of Incoterms for domestic sales can provide greater clarity and transparency in the transaction and can help to reduce the risk of disputes between parties.

Common Domestic Incoterms

DAP (Delivered at Place)

If a seller agrees to deliver goods to a buyer's warehouse using the Incoterm DAP (Delivered at Place), it is clear that:

• The seller is responsible for delivering the goods to the specified location
• The buyer is responsible for unloading them
• The buyer assumes any further costs or risks associated with transportation

FCA (Free Carrier)

If the seller agrees to deliver goods to the buyer's factory using the Incoterm FCA (Free Carrier), it is clear that:

• The seller is responsible for loading the goods onto the carrier
• The buyer is responsible for any further costs or risks associated with transporting the goods to the final destination

Advantages in Domestic Trade

• Clear definition of responsibilities
• Standardized terms and conditions
• Reduced risk of misunderstandings
• Easier dispute resolution
• Consistent with international trade practices