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Incoterms

incoterms-infographics Each term is a three letter acronym, first letter points on the transition of risks from the seller to the buyer:
  • E — at the place of shipment (dispatch).
  • F — for the terms where the basic transportation doesn’t paid.
  • C — for the terms of arrival, basic transportation fully paid.
  • D — door to door delivery, fully paid by the seller.

Incoterms 2010

Any Mode of Transport

  1. EXW — Ex Works (named place). The seller makes the goods available at his premises. The buyer is responsible for all charges. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included.
  2. FCA — Free Carrier (named place). The seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerized/multi-modal sea transport.
  3. CPT — Carriage paid to (named place of destination). The general/containerized/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
  4. CIP — Carriage and Insurance paid to (named place of destination). The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
  5. DAT — Delivered at Terminal (named place). Delivery under DAT takes place when the seller puts the goods at the disposal of the buyer unloaded at the named terminal.
  6. DAP — Delivered at Place (named place). Under DAP, delivery is when the seller puts the goods at the disposal of the buyer at a named place, on a vehicle ready for unloading (that is, not unloaded).
  7. DDP — Delivered, Duty paid (named destination place). This term means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty.

Special terms for Sea and Inland Waterway Transport only

  1. FOB — Free on board (named loading port). The seller must themselves load the goods on board the ship nominated by the buyer, cost and risk being divided at ship’s rail. The seller must clear the goods for export. Maritime transport only.
  2. FAS — Free alongside ship (named loading port). The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export.
  3. CFR — Cost & Freight (named destination port). Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship’s rail. Maritime transport only and Insurance for the goods is NOT included. Insurance is at the Cost of the Buyer.
  4. CIF — Cost, Insurance and Freight (named destination port). Exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.