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read more→What are Incoterms?
The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce relating to international commercial law.
EXW (EX Works)
EX Works EXW named place Incoterms® 2010 —
The seller makes the goods available at their premises, or at another named place. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used while making an initial quotation for the sale of goods without any costs included.
This term may be used for either domestic or international trade.
FCA (Free Carrier)
Free Carrier FCA named place Incoterms® 2010 —
The seller delivers the goods, cleared for export, at a named place (possibly including the seller’s own premises). The goods can be delivered to a carrier nominated by the buyer, or to another party nominated by the buyer.
This term may be used whatever mode or modes of transport will be used.
CPT (Carriage Paid To)
Carriage Paid To CPT named place Incoterms® 2010 —
The seller pays for the carriage of the goods up to the named place of destination. However, the goods are considered to be delivered when the goods have been handed over to the first or main carrier, so that the risk transfers to buyer upon handing goods over to that carrier at the place of shipment in the country of Export.
This term may be used whatever mode or modes of transport will be used.
CIP (Carriage & Insurance Paid)
Carriage and Insurance Paid CIP to named place Incoterms® 2010 —
This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters…
This term may be used whatever mode or modes of transport will be used.
DAP (Delivered at Place)
Delivered at Place DAP named place Incoterms® 2010 —
Once goods are ready for shipment, the necessary packing is carried out by the seller at their own cost, so that the goods reach their final destination safely. All necessary legal formalities in the exporting country are completed by the seller at their own cost and risk to clear the goods for export.
This term may be used whatever mode or modes of transport will be used.
DAT (Delivered at Terminal)
Delivered at Terminal DAT named place Incoterms® 2010 —
This term means that the seller delivers the goods to the buyer to the named terminal in the contract of sale, unloaded from the main carriage vehicle. The seller is responsible for making a safe delivery of goods to the named terminal, paying all transportation and export and transit customs clearance expenses.
This term may be used regardless of the mode or modes of carriage to be used.
DDP (Delivered Duty Paid)
Delivered Duty Paid DDP named place of destination Incoterms® 2010 —
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm “Free In Store (FIS)”.
This term may be used whatever mode or modes of transport may be used.
FAS (Free Alongside Ship)
Free Alongside Ship FAS named port of shipment Incoterms® 2010 —
The seller delivers when the goods are placed alongside the buyer’s vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export…
The seller delivers the goods when they are placed alongside the vessel nominated
FOB (Free on Board)
Free On Board FOB named port of shipment Incoterms® 2010 —
Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel. The seller’s responsibility does not end at that point unless the goods are “appropriated to the contract” that is, they are “clearly set aside or otherwise identified as the contract goods”.
There is a significant change from the meaning of this term in former revisions of
CFR (Cost & Freight)
Cost and Freight CFR named port of destination Incoterms® 2010 —
The seller pays for the carriage of the goods up to the named port of destination. Risk transfers to buyer when the goods have been loaded on board the ship in the country of Export. The shipper is responsible for origin costs including export clearance and freight costs for carriage to the named port.
This rule is intended for use only when carriage is by sea or inland waterway.
CIF (Cost Insurance & Freight)
Cost Insurance and Freight CIF named port of destination Incoterms® 2010 —
This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIF requires the seller to insure the goods for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters…
This term is to be used only when carriage is by sea or inland waterway.