What Are Incoterms?
Cataloguing a total of 11 internationally recognised terms of trade defined by the International Chamber of Commerce (ICC), download
and print the Incoterms quick reference chart and glossary.
What Are Incoterms?
Please see Incoterms Explained for an introductory overview of Incoterms and why they're critical to commercial
Published by the International Chamber of Commerce (ICC), Incoterms 2010 is the latest series of predefined trading
rules used in the domestic and international sale of goods. The following chart illustrates these terms and associated tasks, costs
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EXW - Ex Works
Places greater obligation on the buyer who is responsible for the delivery
of goods from door to door. While the seller needs to ensure freight is available for shipping, beyond collection they have no legal
liability for anything that occurs to the goods while in transit.
FCA - Free Carrier
Requires the seller to transport goods from origin
to a nominated carrier of the buyer's choice. At such time, costs and associated risks are transferred from the seller to the buyer
who is then responsible for onward shipping to destination.
FAS - Free Alongside Ship
Used exclusively for sea freight transport, responsibility
is passed to the buyer following delivery of goods alongside a ship.
FOB - Free On Board
The buyer takes over responsibility for the
delivery of goods to destination following transport of freight on board a vessel at the port of origin (sea freight only).
CFR - Cost
It is the seller's responsibility to nominate a freight forwarder and arrange for the transportation of cargo from origin
to destination port (sea freight only). Risks transfer to the buyer for insurance cover once the goods are delivered on board a vessel
at the port of origin. The buyer is additionally liable for all destination charges.
CIF - Cost Insurance and Freight
Similar to CFR,
but the seller is responsible for the insuring of goods during the maritime leg of the voyage. All risks and costs pass to the buyer
following delivery of goods at the port of destination.
CPT - Carriage Paid To
While the seller is responsible for freight and clearance
to destination, the buyer must cover any costs arising after the goods are delivered to the carrier including loss and damage.
- Carriage and Insurance Paid To
Similar to CPT, but risk of loss and damage to goods during carriage resides with the seller.
Delivered At Terminal
The seller assumes all risks and costs of transport to destination port or terminal. The buyer must pay all destination
charges including relevant duties and taxes, customs clearances and onward delivery.
DAP - Delivered At Place
The seller is responsible
for all risks and costs of delivery to the buyer's facility. Import duties and taxes must be paid by the buyer.
DDP - Delivered Duty
This term places minimal obligation on the buyer and greater responsibility on the seller who is liable for all risks and costs
up to the destination facility, including import duties and taxes.