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Incoterms

EXW - Ex Works

 

FCA - Free Carrier

 

CPT- Carriage Paid To

 

CIP - Carriage and Insurance Paid To

 

DAT - Delivered at Terminal

 

DAPDelivered at Place

 

DDPDelivered Duty Paid

 

FASFree Alongside Ship

 

FOB - Free On Board

 

CFR - Carriage and Freight

 

CIFCarriage, Insurance, and Freight

 

For more information on Incoterms 2010, click HERE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The first Incoterms rules were released in 1936 by the International Chamber of Commerce.  They caused a sensation in the business world given that they represented a radically new concept in an industry regulated by local rules of law.  ICC’s Incoterms help traders avoid misunderstandings by clarifying the costs, risks, and the allocation of certain responsibilities of buyers and sellers in contracts for the sale of goods.

 

International trade becomes more and more complex.  Therefore, universally used rules are essential to avoid misunderstandings and costly disputes.  Regularly incorporated into sales contracts worldwide, Incoterms® rules define the responsibilities of sellers and buyers for the delivery of goods.  Incoterms® 2010 continues a 70-year ICC tradition and reflects the latest developments in commercial practice and updates, and consolidates some of the former rules.  A new classification system divides the 11 Incoterms® rules into two distinct groups:

 

Rules for any mode of transport: EXW  FCA  CPT  CIP  DAT  DAP  DDP

Rules for waterway transport: FAS  FOB  CFR  CIF

 

In addition to the 11 rules, Incoterms® 2010 includes:

  • Extensive guidance notes and illustrative graphics to help users efficiently choose the right rule for each transaction;

  • New classification to help choosing the most suitable rule in relation to the mode of transport;

  • Advice for the use of electronic procedures;

  • Information on security-related clearances for shipments;

  • Advice for the use of Incoterms® 2010 in domestic trade.

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