Incoterms 2010
These Regulations come into force on January 1, 2011
Incoterms 2010 (Incoterms 2010) - it is international law recognized by government agencies, law firms and traders all over the world as the best interpretation of the applicable terms of international trade.
The scope of Incoterms 2010 (Incoterms 2010) apply to the rights and obligations of the parties under the contract of sale of the goods delivery (terms of delivery).
Each term Incoterms 2010 (Incoterms 2010) is an abbreviation of three letters.
Here is the full list of terms Incoterms 2010 (Incoterms 2010) and the necessary comments. Rules for Sea and Inland Waterway Transport:
| Group E Departure | |
| EXW | EX Works ( ... named place) |
| Group F Main Carriage Unpaid | |
| FCA | Free Carrier (...named place) |
| FAS | Free Alongside Ship (... named port of shipment) |
| FOB | Free On Board (... named port of shipment) |
| Group C Main Carriage Paid | |
| CFR | Cost and Freight (... named port of destination) |
| CIF | Cost, Insurance and Freight (... named port of destination) |
| CIP | Carriage and Insurance Paid Тo (... named place of destination) |
| CPT | Carriage Paid To (... named place of destination) |
| Group D Arrival | |
| DAP | Delivered At Place (... named place of destination) |
| DAT | Delivered At Terminal (... named place of destination) |
| DDP | Delivered Duty Paid (... named place of destination) |
Rules for Any Mode or Modes of Transportation:
EXW - Ex Works: Seller delivers (without loading) the goods at disposal of buyer at seller's premises.
Long held as the most preferable term for those new-to-export because it represents the minimum
liability to the seller. On these routed transactions, the buyer has limited obligation to provide export
information to the seller.
FCA - Free Carrier: Seller delivers the goods to the carrier and may be responsible for clearing the goods
for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is
commonly expected, and sellers are more concerned about export violations.
CPT - Carriage Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer,
but seller must pay cost of carriage to the named place of destination.
CIP - Carriage and Insurance Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk
to the buyer, but seller pays carriage and insurance to the named place of destination.
DAT - Delivered at Terminal: Seller bears cost, risk and responsibility until goods are unloaded
(delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention
charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.
DAP - Delivered at Place: Seller bears cost, risk and responsibility for goods until made available to buyer
at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.
DDP - Delivered Duty Paid: Seller bears cost, risk and responsibility for cleared goods at named place of
destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible for import
clearance, duties and taxes so buyer is not “importer of record”.
INCOTERMS DO NOT...
Determine ownership or transfer title to the goods, nor evoke payment terms.
Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies.
Protect parties from their own risk or loss, nor cover the goods before or after delivery.
Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract.
Remember, Incoterms are not law and there is NO default Incoterm!