Incoterms

Rules of the International Chamber of Commerce (ICC) for the use of national and international commercial terms.

The published text is a summary and for more information should consult the official edition Incoterms 2010.

incoterms

EXW: ExWorks

“EX Works” means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises, not cleared for export and not loaded onto a collecting vehicle.
The buyer has to bear the risks and costs involved in collecting the goods from the seller’s premises.

FCA: Free Carrier

“Free Carrier” means that the seller delivers the goods to the carrier appointed by the buyer at the agreed place. The seller also has to clear the goods through customs for export.
This term can be used with any mode of transport, including multimodal transport.

FAS: Free Alongside Ship

“Free Alongside Ship” means that the seller delivers the goods when he places them alongside the vessel at the agreed port of shipment.
The buyer has to bear all costs and risks of loss of or damage to the goods from that moment. However, this term means that the seller has to clear the goods through customs for export.
This term can be used only for sea or inland waterway transport.

FOB: Free on Board

“Free on Board” means that the seller delivers when the goods pass the ship’s rail at the agreed port of shipment. The seller also has to clear the goods through customs for export.
The buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
This term can be used only for sea or inland waterway transport.

CPT: Carriage Paid To

“Carriage Paid To” means that the seller delivers the goods when he places them at the disposal of the carrier nominated by him. The seller must also pay the costs of the carriage necessary to bring the goods to the agreed destination.
However, once the goods have been so delivered, the risk of damage or loss passes to the buyer.
According to this term, the seller is responsible for clearing the goods for export.
This term may be used with any mode of transport, including multimodal transport.

CIP: Carriage & Insurance Paid To

“Carriage & Insurance Paid To” means that the seller delivers the goods when he places them at the disposal of the carrier nominated by him. The seller must also pay the costs of the carriage necessary to bring the goods to the agreed destination.
The seller also has to procure a minimum marine insurance to cover the buyer’s risks of loss of or damage to the goods during carriage.
According to this term, the seller is responsible for clearing the goods for export.
This term may be used with any mode of transport, including multimodal transport.

CFR: Cost & Freight

“Cost & Freight” means that the seller delivers when the goods pass the ship’s rail in the agreed port of shipment.
Once the goods have been delivered, the seller must pay the costs and freight necessary to bring the goods to the agreed port of destination. However, the risk of damage to or loss of the goods is transferred to the buyer.
According to this term, the seller is responsible for clearing the goods for export.
This term can be used only for sea or inland waterway transport.

CIF: Cost Insurance & Freight

“Cost Insurance & Freight” means that the seller delivers when the goods pass the ship’s rail in the agreed port of shipment.
Once the goods have been delivered, the seller must pay the costs and freight necessary to bring the goods to the agreed port of destination. The seller also has to procure a minimum marine insurance to cover the buyer’s risks of loss of or damage to the goods during carriage.
According to this term, the seller is responsible for clearing the goods for export.
This term can be used only for sea or inland waterway transport.

DAT: Delivered at Terminal

“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.

The seller bears all risks involved in bringing the goods to the named place.

DAP: Delivered at Place

“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.

The seller bears all risks involved in bringing the goods to the named place.

DDP. Delivered Duty Paid

“Delivered Duty Paid” means that the seller delivers the goods when he places them at the disposal of the buyer, on their arrival at the agreed place of destination in the country of the buyer.
The seller also has to bear all costs and risks of bringing the goods to the agreed point, including any customs duties, taxes and other charges necessary for importing the goods into the country of destination. In this way, this term should not be used by the seller if he is unable to obtain the import licence.

This term may be used with any mode of transport.

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