Incoterms 2010

INCOTERMS 2010 are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. They are used in conjunction with a sales agreement or other method of transacting the sale.

 

EXW Ex Works
(... named place)
Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.
FCA Free Carrier
(...named place)
Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to recieve the Seller's arriving vehicle unloaded.
FAS Free Alongside Ship
(...named port of shipment)
Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.
FOB Free On Board
(...named port of shipment)
Title and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.
CFR Cost and Freight
(...named port of destination)
Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.
CIF Cost, Insurance and Freight
(...named port of destination)
Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.
CPT Carriage Paid To
(...named place of destination)
Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.
CIP Carriage and Insurance Paid To
(...named place of destination)
Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.
DAT Delivered at Terminal (... named terminal of destination) Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. "Terminal" includes quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point, DAP or DDP may apply.
Responsibilities: Seller is responsible for the costs and risks to bring the goods to the point specified in the contract
Seller should ensure that their forwarding contract mirrors the contract of sale
Seller is responsible for the export clearance procedures
Importer is responsible to clear the goods for import, arrange import customs formalities, and pay import duty
If the parties intend the seller to bear the risks and costs of taking the goods from the terminal to another place then the DAP term may apply
DAP Delivered at Point... (named point of destination) Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties etc., consideration should be given to using the DDP term.
Responsibilities: Seller bears the responsibility and risks to deliver the goods to the named place
Seller is advised to obtain contracts of carriage that match the contract of sale
Seller is required to clear the goods for export
If the seller incurs unloading costs at place of destination, unless previously agreed they are not entitled to recover any such costs
Importer is responsible for effecting customs clearance, and paying any customs duties
DAF Delivered at Frontier
(...named place)
Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.
DES Delivered Ex Ship
(...named port of destination)
Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
DEQ Delivered Ex Quay (Duty Paid)
(...named port of destination)
Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation. DDU – Delivered Duty Unpaid – Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point. Used for any mode of transportation. Buyer is obligated for import clearance.
DDU Delivered Duty Unpaid
(...named place of destination)
Seller fulfills his obligation when goods have been made available at teh named place in the country of importation.
DDP Delivered Duty Paid
(...named place of destination)
Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.