INCOTERMS (in Spanish and English) and what they mean

International Commercial Terms (“Incoterms”) are eleven internationally-acknowledged standard trade terms created by the International Chamber of Commerce (ICC)* to be used in sales contracts. They specify:

1) who (whether the seller or buyer) will be responsible for transportation costs, including insurance, taxes and duties

2) where the goods are to be picked up and delivered, and

3) who is responsible for the goods at each step of the transportation process and, particularly, when risk of damage to or loss of the goods pass from seller to buyer.

Below are the standard Incoterms in English and Spanish with a brief schematic explanation of each:

A) Incoterms for any mode of transportation:

EXW Ex Works (named place)–EXW En fábrica (lugar convenido)

Seller places the goods at the disposal of the buyer at the seller’s premises or at another named place (factory, warehouse, etc.). The seller does not need to load the goods on any vehicle, nor clear the goods for export, if applicable. Buyer is responsible for all subsequent risks, transportation costs, taxes and duties from that point forward.

FCA Free Carrier (named place)–FCA Libre transportista (lugar convenido)

Seller delivers the goods to the buyer’s carrier at a designated place. At this point risk passes to buyer, who is then responsible for transportation to the final destination of delivery.

CPT Carriage paid to (named place of destination)–CPT Transporte pagado hasta (lugar de destino convenido)

Seller delivers the goods to a carrier designated by the seller at an agreed place. Seller contracts for and bears the cost of delivering the goods to the named place of destination.

CIP Carriage and Insurance Paid to (named place of destination)–CIP Transporte y seguros pagados hasta (lugar de destino convenido)

Seller delivers the goods to a carrier designated by the seller at an agreed place. Seller not only contracts for and bears the cost of delivering the goods to the named place of destination, but must likewise take out minimum insurance coverage against the buyer’s risk of loss or damage to the goods during transportation. Buyer may choose to contract additional insurance coverage.

DAT Delivered at Terminal (named terminal at port or place of destination)–DAT Entregado en terminal (puerto de destino convenido)

Seller is deemed to have delivered the goods when, once unloaded from the arriving means of transport, they are placed at the disposal of the buyer at a named terminal at the designated port or place of destination. Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the port or place of destination.

DAP Delivered at Place (named place of destination)–DAP Entregado en un punto (lugar de destino convenido)

Seller is deemed to have delivered the goods when the goods are placed at the disposal of the buyer on the arriving carrier ready for unloading at the named place of destination. Seller bears all risks involved in bringing the goods to the designated place.

DDP Delivered Duty Paid (named place of destination)–DDP Entregado, derechos pagados (lugar de destino convenido)

Seller is deemed to have delivered the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport and ready for unloading at the named place of destination. Seller bears all costs and risks involved in bringing the goods to the place of destination, including clearing the goods for export and import, paying the corresponding duties and carrying out all customs formalities.

B) Incoterms specifically for sea and inland waterway transportation

FAS Free Alongside Ship (named loading port)–FAS Franco/Libre al costado del buque (puerto de carga convenido)

Seller is deemed to have delivered the goods when they are placed alongside the vessel (e.g., on a quay or a barge) designated by the buyer at the named port of shipment. Risk of loss of or damage to the goods passes to buyer when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

FOB Free on Board (named loading port)–FOB Franco/Libre a bordo (puerto de carga convenido)

Seller delivers the goods on board the vessel designated by the buyer at the named port of shipment. Risk of loss of or damage to the goods passes to buyer when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

CFR Cost and Freight (named port of destination)–CFR Coste y flete (puerto de destino convenido)

Seller delivers the goods on board the vessel and risk of loss of or damage to the goods passes to buyer once the goods are on board. Seller bears responsibility for contracting for and paying the costs and freight necessary to bring the goods to the named port of destination.

CIF Cost, Insurance and Freight (named port of destination)–CIF Coste, seguro y flete (puerto de destino convenido)

Seller delivers the goods on board the vessel and risk of loss of or damage to the goods passes to buyer once the goods are on board. Seller not only bears responsibility for contracting for and paying the costs and freight necessary to bring the goods to the named port of destination, but must likewise take out minimum insurance coverage against the buyer’s risk of loss of or damage to the goods during carriage. Buyer may choose to contract additional insurance coverage.

This ICC chart gives an informative Incoterms overview:

Incoterms 2010 (chart)

For a more detailed explanation of each Incoterm, see the ICC’s website: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/

What is usufructo ?

Usufructo, the right to use and enjoy the proceeds of another’s property for a given term, is one of the most common rights in property (derechos reales) present in civil code systems. The beneficiary (usufructuario) of a “usufruct” (as usufructo is known in Louisiana and in other English-speaking civil law jurisdictions) may use and enjoy the “fruits” (proceeds, profit, etc.) from the property, but without damaging or diminishing it. Article 467 of the Spanish Civil Code defines usufructo as the “right to use and reap the proceeds from another’s property with the obligation to preserve its form and substance, unless the instrument granting that right or the law provides otherwise” (derecho a disfrutar los bienes ajenos con la obligación de conservar su forma y sustancia, a no ser que el título de su constitución o la ley autoricen otra cosa). The property owner granting a usufruct is known as a nudo propietario (“naked owner,” similar to the common law “remainderman”). Here are a few of the basic terms and concepts concerning usufructo with their possible English translations:*

  • usufructo—usufruct; beneficial interest; beneficial ownership
  • usufructuario—usufructuary; beneficiary of a usufruct; beneficial owner
  • nudo propietario—naked owner; remainderman
  • usufructo sobre cosas inmuebles o muebles—usufruct of real or personal property
  • usufructo de derechos—usufruct of rights
  • usufructo simple—usufruct granted to a single person
  • usufructo múltiple—usufruct granted to two or more persons
  • usufructo simultáneo—simultaneous usufruct (usufruct enjoyed simultaneously by multiple beneficiaries)
  • usufructo sucesivo—successive usufruct (usufruct enjoyed by each beneficiary in succession)
  • usufructo propio; usufructo normal; usufructo de cosa no consumible—usufruct of non-consumable property (with the obligation to preserve its form and substance)
  • usufructo impropio; usufructo anormal; cuasiusufructo—usufruct of consumable property
  • usufructo voluntario—usufruct created voluntarily
  • usufructo legal—usufruct imposed by operation of law
  • usufructo puro—unconditional usufruct
  • usufructo condicional—conditional usufruct
  • usufructo a plazo—usufruct for a term
  • usufructo vitalicio—lifetime usufruct; usufruct for the life of the beneficiary; life estate; lifetime interest
  • usufructo viudal; usufructo del cónyuge viudo—surviving spouse’s usufruct; usufruct of a surviving spouse
  • usufructo testamentario—usufruct created by will
  • usufructo por prescripción—usufruct created by adverse possession

Source: Rebecca Jowers. Léxico temático de terminología jurídica español-inglés. Madrid: Tirant lo Blanch, 2015, pp. 767-769.

What’s the right preposition to use with “right” and “rights”?

Learners of Legal English are often stumped when it comes to deciding which preposition to use in a given expression. Indeed, prepositions pose a stumbling block in many languages, and English is no exception, whether used with nouns, in prepositional phrases or appended to phrasal verbs. This week one of the students in my Legal English course asked me which preposition is used with the noun “right” (or “rights).” Most expressions require “of,” “to” or sometimes “in.” Here are some of the most common (some have two possible options):

Expressions with “OF”:

  • right of assembly (also: freedom of assembly) (derecho de reunion; libertad de reunión)
  • right of asylum (derecho de asilo)
  • right of association (also: freedom of assembly) (derecho de asociación; libertad de asociación)
  • right of establishment (derecho de establecimiento)
  • right of first refusal (derecho de tanteo)
  • right of good reputation (derecho al honor)
  • right of privacy (derecho a la intimidad)
  • right of publicity (also: publicity rights) (derecho a la propia imagen)
  • right of sufferage (derecho de sufragio)
  • right of way (derecho de paso; servidumbre de paso)

Expressions with “TO”:

  • right to counsel (derecho a la asistencia letrada)
  • right to demonstrate (libertad de manifestación)
  • right to due process (derecho a la tutela judicial efectiva)
  • right to hold public office (derecho de acceso a los cargos públicos)
  • right to life (derecho a la vida)
  • right to own property (derecho de propiedad)
  • right to privacy (derecho a la intimidad)
  • right to stand for election (derecho de sufragio pasivo)
  • right to unionize (libertad sindical)
  • right to strike (derecho a la huelga)
  • right to vote (derecho de sufragio activo)
  • right to vote and stand for election (derecho de sufragio)
  • right to work (derecho al trabajo)

Expressions with “IN”:

  • rights in property (derechos reales)
  • rights in patents (derechos sobre patentes)
  • rights in trademarks (derechos sobre marcas), etc.

(One holds rights IN property, a use most often found in the context of intellectual property, and which may actually sound unnatural to nonlawyer native speakers of English).