What are Incoterms?
International commercial terms and the rules of Incoterms, published by the International Chamber of Commerce (ICC) is widely used in international commercial operations. Incoterms rules provided for in the terms of trade, which provides safe transportation of cargo. Incoterms rules are marked by a series of three letters, which are precisely defined tasks, costs and risks associated with the transportation and delivery of goods.
Incoterms rules are accepted and recognized by many governments to explain the terms of international trade. Incoterms rules were first published in 1936 and then periodically improved.
The eighth version of the “Incoterms – 2010” published on January 1, 2011
EXW (EX Works)
EX Works EXW named place Incoterms® 2010 — This term may be used for either domestic or international trade.
FCA (Free Carrier)
Free Carrier FCA named place Incoterms® 2010 — 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 — 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 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 may be used regardless of the mode or modes of carriage to be used.
DAP (Delivered at Place)
Delivered at Place DAP named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.
DDP (Delivered Duty Paid)
Delivered Duty Paid DDP named place of destination Incoterms® 2010 — 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 the goods when they are placed alongside the vessel nominated
FOB (Free on Board)
Free On Board FOB named port of shipment Incoterms® 2010 — 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 — 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 to be used only when carriage is by sea or inland waterway.