IncoTerms
Incoterms 2000 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. 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 and Freight -- Title, risk and insurance cost pass to
buyer when delivered on board the ship by seller who pays the
transportation cost to the destination port. Used for sea or
inland waterway transportation.
• CIF - Cost, Insurance and 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 to carrier by seller who pays transportation
cost to destination. Used for any mode of transportation.
• CIP - Carriage and Insurance Paid To --Title and risk pass to
buyer when delivered to carrier by seller who pays transportation
and insurance cost to destination. Used for any mode of
transportation.
• DAF - Delivered at Frontier -- Title, risk and responsibility
for import clearance pass to buyer when delivered to named border
point by seller. Used for any mode of transportation.
• DES - Delivered Ex Ship -- Title, risk, responsibility for
vessel discharge and import clearance pass to buyer when seller
delivers goods on board the ship to destination port. Used for sea
or inland waterway transportation.
• DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to
buyer when delivered on board the ship at the destination point by
the seller who delivers goods on dock at destination point cleared
for import. Used for sea or inland waterway transportation. DDU -
Delivered Duty Unpaid -- Title, risk and responsibility of import
clearance pass to buyer when seller delivers goods to named
destination point. Used for any mode of transportation. Buyer is
obligated for import clearance.
• DDU - Delivered Duty Unpaid -- Seller fulfills his obligation
when goods have been made available at the named place in the
country of importation
• DDP - Delivered Duty Paid -- Title and risk pass to buyer when
seller delivers goods to named destination point cleared for
import. Used for any mode of transportation.
• Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any
mode of transportation. FAS, FOB, CFR, CIF, DES, and DEQ are used
for sea and inland waterway.
