Terms Incoterms 2010

Incoterms rules have become an important part of everyday trading language.

Terms are included in contracts for the sale of goods around the world, determine the rules and provide guidance for action for importers, exporters, lawyers, carriers, insurers and students studying international trade.

inkoterms

RULES FOR ANY TYPE OR TRANSPORT TYPES

  • EXW   Ex Works 

“Ex Works” means that the seller delivers when he places the goods at the buyer’s disposal at his premises or at another agreed location (i.e., in an enterprise, warehouse, etc.). The seller does not have to load the goods onto any vehicle; he is also not obliged to carry out the formalities necessary for export, if applicable.

  • FCA    Free Carrier 

“Free Carrier” means that the seller transfers the goods to a carrier or other person nominated by the buyer in their premises or in another stipulated place. It is strongly recommended that the parties identify the item at the named place of delivery most clearly, since the risk passes to the buyer at that point.

  • CPT    Carriage Paid to 

“Carriage Paid to” means that the seller delivers the goods to the carrier or other person nominated by the seller in the agreed place (if such a place is agreed by the parties) and that the seller is obliged to enter into a contract of carriage and bear the cost of transportation required to deliver the goods to the agreed destination.

  • CIP     Carriage and Insurance Paid to

“Carriage and Insurance Paid to” means that the seller transfers the goods to the carrier or other person nominated by the seller in the agreed place (if such a place is agreed by the parties) and that the seller is obliged to conclude a contract of carriage and bear the cost of transportation necessary to deliver the goods to the agreed destination. The seller also concludes an insurance contract covering the risk of loss or damage to the goods during carriage.

  • DAT    Delivered at Terminal 

“Delivered at Terminal” means that the seller delivers when the goods unloaded from the arriving means of transport are made available to the buyer at the agreed terminal at the named port or destination. “Terminal” includes any place, closed or not, such as a berth, warehouse, container yard or road, rail or air cargo terminal. The seller carries all risks associated with the delivery of the goods and their unloading at the terminal in the named port or at the destination.

  • DAP    Delivered at Place

“Delivered at Place” means that the seller delivers when the goods are made available to the buyer on the arriving vehicle ready for unloading at the agreed destination. The seller bears all risks associated with the delivery of the goods to the named place.

  • DDP    Delivered Duty Paid

“Delivered Duty Paid” means that the seller delivers when the goods are delivered to the buyer, cleared of the customs duties necessary for the importation, on the arrived vehicle ready for unloading at the named destination. The seller bears all the costs and risks associated with delivery of goods to the destination, and is obliged to perform customs formalities necessary not only for export but also for import, pay any fees charged for export and import, and complete all customs formalities.

 

RULES FOR SEA AND INLAND WATER TRANSPORT

  • FAS    Free Alongside Ship

“Free Alongside Ship” means that the seller is deemed to have fulfilled his obligation to deliver when the goods are placed along the side of the vessel nominated by the buyer (ie, on the quay or barge) at the agreed port of shipment. The risk of loss or damage to the goods passes when the goods are located along the ship’s side, and from that moment the buyer bears all costs.

  • FOB    Free on Board

“Free on Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, or ensures the provision of the goods so delivered. The risk of loss or damage to the goods passes when the goods are on board the vessel, and from that moment the buyer bears all costs.

  • CFR    Cost and Freight

“Cost and Freight” means that the seller delivers the goods on board the vessel or delivers the goods so delivered. The risk of loss or damage to the goods passes when the goods are on board. The seller is obliged to conclude a contract and pay all costs and freight necessary for the delivery of the goods to the named port of destination.

  • CIF     Cost Insurance and Freight

“Cost Insurance and Freight” means that the seller delivers the goods on board the vessel or provides the goods thus delivered. The risk of loss or damage to the goods passes when the goods are on board. The seller is obliged to conclude a contract and pay all costs and freight necessary for the delivery of the goods to the named port of destination. The seller also concludes an insurance contract covering the risk of loss or damage to the goods during carriage.