Incoterms 2010

 

WHAT ARE INCOTERMS?

The International Chamber of Commerce established Incoterms to create a set of internationally accepted commercial terms. These terms define the roles of buyers and sellers in the arrangement of transportation and other responsibilities in their international transactions. They are written into the Contract of Sale. Incoterms 2010 is the latest version, in effect since January 1, 2011.  
Below is a listing of Incoterms 2010, classified by category. Incoterms are updated every decade. Always indicate the version of Incoterms you are using.

The "E" terms (Departure)

 

EXW (Ex Works) - EXW Ex Works (…named place)
Carriage arranged by Buyer.
Risk transfers from seller to buyer when goods are at buyer's disposal.
Cost transfers from seller to buyer when goods at buyer's disposal.

 

The "F" terms (Main Carriage Not Paid by Seller)

 

FCA Free Carrier (…named place) -
Carriage arranged by buyer or seller on buyer's behalf.
Risk transfers from seller to buyer when goods have been delivered to the carrier at a named place.
Cost transfers from seller to buyer when goods have been delivered to carrier at a named place.

 

FAS Free Alongside Ship (… named port of shipment)
OCEAN OR WATERWAY TRANSPORT ONLY
Carriage arranged by buyer.
Risk transfers from seller to buyer when goods have been placed alongside the ship.
Cost transfers from seller to buyer when goods have been placed alongside the ship.

 

FOB Free On Board (…named port of shipment) -
OCEAN OR WATERWAY TRANSPORT ONLY
Carriage arranged by buyer.
Risk transfers from seller to buyer when goods are loaded on board the vessel (loading must be clearly defined).
Cost transfers from seller to buyer when goods are loaded on board the vessel (loading must be clearly defined).

The "C" terms (Main Carriage Paid by Seller)

 

CFR Cost and Freight (…named port of destination)
OCEAN OR WATERWAY TRANSPORT ONLY
Carriage arranged by seller.
Risk transfers from seller to buyer when goods are loaded on board the vessel (loading must be clearly defined).
Cost transfers from seller to buyer at the port of destination.

 

CIF Cost, Insurance and Freight (…named port of destination)
OCEAN OR WATERWAY TRANSPORT ONLY
Carriage and Insurance arranged by seller.
Risk transfers from seller to buyer when goods are loaded on board the vessel (loading must be clearly defined).
Cost transfers at port of destination.

 

CPT Carriage Paid To (…named place of destination)
Carriage arranged by seller.
Risk transfers from seller to buyer when goods have been delivered to the first carrier.
Cost transfers at place of destination, buyer paying such costs as are not for the seller's account under the contract of carriage

 

CIP Carriage and Insurance Paid To (…named place of destination)
Carriage and Insurance arranged by seller.
Risk transfers from seller to buyer when goods have been delivered to the first carrier.
Cost transfers at place of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

 

The "D" terms (Arrival)

 

DAT Delivered At Terminal (…named terminal at port or place of destination)
Carriage arranged by seller.
Risk transfers from seller to buyer when goods have been delivered to the named terminal at destination.
Cost transfers from seller to buyer when goods have been delivered to the named terminal at destination.

 

DAP Delivered At Place (…named place of destination)
Carriage arranged by seller.
Risk transfers from seller to buyer when goods are available, ready for unloading, at the named place of destination.
Cost transfers from seller to buyer when goods are available, ready for unloading, at the named place of destination.

DDP delivered Duty Paid (…named place of destination)
Carriage arranged by seller.
Risk transfers from seller to buyer when goods are available, ready for unloading, at the named place of destination.
Cost transfers from seller to buyer when goods are available, ready for unloading, at the named place of destination.