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Incoterms

The Incoterms (international commercial terms) regulate the transition of costs and risks for commercial trade contracts.  They were developed by the ICC (International Chamber of Commerce).

The incoterms are regularly updated and revised. However, trade contracts are still regularly  concluded based on older versions of the Incoterms, which is why we also list Incoterms that have been abolished. The latest revision was in 2010.

Incoterms

EXW = ex works (named place)

 

 

 

 


 

FCA = free carrier

 

 

 

 

  

FAS = free alongside ship

             (named port)

 

  

FOB = free on board

             (named port)

 

 

  

CFR = cost & freight

             (named place/port)

 

 

 

 

  

CPT= carriage paid to

             (named place)

CIF = cost, insurance, freight

             (named place/port)

 

 

 

 

 

  

CIP= carriage & insurance paid to

             (named place)

DAT = delivered at terminal

             (named port)

  

DAP = delivered at place

             (named place)

 

 

  

DDU = delivered duty unpaid

             (named place)

  

 

 

 

 

DDP = delivered duty paid

             (named place)

  

 

 

 

 

The transition of costs and risks takes place as soon as the seller makes the cargo available for collection at his premises/factory which has to be arranged by the buyer. The seller needs to issue all relevant export documents, however export procedures are the responsibility of the buyer.

Suitable for all transport modalities.

The seller has to deliver the cargo to the carrier named in the sales contract. The transition of costs and risks takes place once the cargo is loaded onto the means of transportation of the carrier. The seller is responsible for export customs clearance.

Suitable for all transport modalities.

The seller delivers export customs cleared up to the loading terminal. The transition of costs and risks takes place once cargo is located at the terminal.

Only applicable for sea freight.

The transition of costs and risks takes place once the seller has delivered the cargo export customs cleared onto the vessel, break over point is the vessel's rail. Booking with the shipping line may be effected through seller or buyer.

Only applicable for sea freight.

The seller arranges the entire transport up to the arrival at the port of discharge. Both unloading charges and import customs clearance are the responsibility of the buyer. The transition of risks is at the port of loading and no insurance mandatory.

Only recommended for sea freight by the ICC, but actually regularly used for all transport modalities.

Just like CFR, but drafted for all transport modalities.


The seller arranges the entire transport up to the arrival at the port of discharge. Both unloading charges and import customs clearance are the responsibility of the buyer. Insurance is mandatory and to be covered by the seller. However, transition of risks (other than those covered by the insurance) is still at port of loading.

Only recommended for sea freight by the ICC, but actually regularly used for all transport modalities.

Just like CFR, but drafted for all transport modalities.


The seller bears all costs and risks until the cargo is at the terminal in the port of discharge.

Only applicable for sea freight.

The seller bears all costs and risks until the cargo is at the place of destination, ready for unloading from the delivery vehicle. Import customs clearance is the buyer's responsibility.

Suitable for all transport modalities.

The seller bears all costs and risks until the cargo is at the place of destination, ready for unloading from the delivery vehicle. Import customs clearance to be arranged by the seller, but customs duties to be paid by the buyer.

Has been replaced by DAT & DAP in Incoterms 2010, but may still be used for contracts.

Suitable for all transport modalities.

The seller bears all costs and risks until the cargo is at the place of destination, ready for unloading from the delivery vehicle. Import customs clearance to be arranged by the seller and customs duties to be paid by the seller. However, buyer has to provide the necessary documents.

Suitable for all transport modalities.


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