Incoterms

The series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law.

What are they?

'Incoterms' is the short and easy way of saying International Commercial Terms. They are a set of rules defining who's responsible for what during international transactions.

'Incoterms' sets clearly all the tasks, risks and cost that occurring during any transportation and they are the unique way between the seller and the buyer to avoid a potential costly misunderstanding.

Incoterms

Incoterms

EXW - Ex-works

Buyer takes almost all the cost throughout the shipping process and the seller is only responsible to give free access to the goods. Risk transfers from seller to buyer at the place the goods are being collected

CIF - Cost, Insurance and Freight


Seller assumes all costs, risks, export clearance and insurance. Risk transfers from seller to buyer when goods are on the ship

FOB - Free On Board

Seller has the same obligations as CIF without the insurance cost. Risk transfers when goods have been delivered onto the ship.

DAP - Delivered At Place

Seller assumes all costs and risks of transporting goods to an agreed address but the buyer sorts import clearance and any related duties. Risk transfers when goods are ready for unloading.

DDP - Delivered Duty Paid

Seller has the same obligations as DAP but the seller sorts import clearance and pays all the duties. Risk transfers when goods are ready for unloading.

CIP - Carriage and Insurance Paid

Seller must deliver the goods to the buyer's carrier at an agreed location and pay for the carriage and insurance to the named destination. Risk transfers when the buyer's carrier receives the goods.

DPU - Delivered at Place Unloaded

Seller has the same obligations as DAP but the place of unloading could be any place, whether covered or not. Risk transfers at the place of unloading

FCA - Free Carrier

Seller must deliver the goods to the buyer's carrier at an agreed location and clear them for export. Risk transfers when the buyer's carrier receives the goods.

CPT - Carriage Paid To

Seller has the same obligations as FCA but covers also the delivery costs. Risk transfers when the buyer's carrier receives the goods.

FAS - Free Alongside Ship

Seller assumes all costs and risks until the goods have been delivered next to the ship. Buyer must arrange all the export and import clearance. Risk transfers when goods have been delivered next to the ship.

CFR - Cost and Freight

Seller has the same obligations as FOB but pays also the cost of bringing the goods to the port. Risk transfers when goods are on the ship.