IFB Guide to Incoterms 2010
Incoterms® or International Commercial terms are a series of international sales with terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. These are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade.
As of January 1, 2011 the eighth edition, Incoterms® 2010, and we have summaries them below for your information.
EXW Ex Works
Sellers responsibility to make goods available at sellers premises,buyer bears full risk from premises to destination.
FCA Free Carrier
Sellers responsibility is to deliver to buyers nominated carrier, risk transfers upon completion of loading.
CPT Carriage Paid to
Seller delivers goods to Port or carrier at agreed place of delivery, and additionally pays through to named destination Risk is transferred at place of delivery, not at final destination.
CIP Carriage and Insurance Paid to
Seller delivers goods to Port or carrier as agreed place of delivery and additionally pays transport and insurance to named destination, Risk is transferred at place of delivery.
DAT Delivered at Terminal
Seller deliveres goods to be unloaded at specified terminal point, Risk is transferred post offloading.
DAP Delivered at Place
Seller delivers good to agreed place making goods available to buyer, goods are at sellers risk until goods are made ready to unload from arriving transport.
DDP Delivery Duty Paid
Sellers responsibility is to deliver goods to destination, duty paid, making goods available to the buyer risk is transferred to the buyer once the goods have been made available for unloading at the agreed destination.
FAS Free Alongside Ship
Sellers responsibility is to deliver goods alongside ship, risk then from this point onwards lies with buyer
FOB Free on Board
Sellers responsibility it to deliver goods on board ship, risk is transferred after goods are loaded into the vessel.
CFR Cost and Freight
Seller covers freight but not responsibility of duty to named port of destination, Risk is transferred after goods are loaded into the vessel.
CIF Cost Insurance and Freight
Seller covers freight and insurance,but not responsibility of duties to named port of destination, risk is transferred after goods have been loaded inside vessel.