Incoterms 2010

Incoterms are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. They are used in conjunction with a sales agreement or other method of transacting the sale.

· EXW - Ex Works -- Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.

· FCA - Free Carrier -- Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to receive the Seller's arriving vehicle unloaded.

· FAS - Free Alongside Ship --Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller at named port terminal by seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.

· FOB - Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.

· CFR - Cost & Freight -- Title, risk and insurance cost pass to buyer when delivered on board the main carrier(vessel) by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.

· CIF - Cost, Insurance & Freight -- Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

· CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered by seller who pays transportation cost to a named place. Used for any mode of transportation.

· CIP - Carriage & Insurance Paid To --Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller who pays transportation and insurance cost to a named place of destination. Used for any mode of transportation.

· DAT - Delivered at Terminal -- Title, risk and responsibility pass to buyer when delivered to named quay, warehouse, yard or terminal at destination. Used for any mode of transportation (replaces DEQ & DES).

· DAP - Delivered At Place -- Seller bears cost, risk, responsibility for goods until made available to buyer at named place of destination. Buyer is responsible for import brokerage, duties, and taxes. (replaces DAF & DDU)

· DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods to named destination point cleared for import including duties & taxes. Buyer is responsible for unloading, Used for any mode of transportation.

Party Responsible to Pay for Service

Any Mode of Transport

Sea / Inland Waterway

Service/Event

EXW

FCA

CPT

CIP

DAT

DAP

DDP

FAS

FOB

CFR

CIF

Export Packing

Marking and Labeling

Block & Brace Container

S/C

Export Clearance -License/AES

Arrange Insurance

S/C

Export Forwarder Fees

Inland Freight to Main Carrier

S/C

Origin Terminal Charges

Loading Main Carrier

Ocean Freight / Air Freight

Unload Main Carrier

S/C

Destination Terminal Charges

S/C

Import Broker Fees

Import Security Information Requirements

Pay Dest. Duty, Taxes, Fees

Nominate/Arrange On-Carrier

Delivery to Buyer Destination

S/C

Unload From On-Carrier

S = Shipper/Seller | C = Consignee/Buyer | S/C = Determined by Sales Contract or if Door to Door

Incoterms 2010 is copyrighted by the International Chamber of Commerce, Paris, France.
It is available in the United States from ICC Publishing, Inc., 156 Fifth Avenue, New York, NY 10010.