INCOTERMS

INCOTERMS 2000 - The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade 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.

GROUP E - Departure
Under EXW, the seller minimizes his risk by making the goods available at his own premises.

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.

GROUP F - Main Carriage not paid by seller
Under F Terms, and under FCA unless otherwise agreed, the seller arranges and pays for the pre-carriage in the country of export.

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 recieve 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.

GROUP C - Main Carriage paid by seller
Under C Terms the seller arranges and pays for the main carriage but without assuming the risk of the main carriage.

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.

GROUP D - Arrival
Under D Terms the seller's cost/risk is maximized because he must make the goods available upon arrival at the agreed destination.

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 teh 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.

Transport Obligations, costs and risks

INCOTERMS Carriage of Goods Risks Costs
EXW Carriage to be arranged by the buyer Risk transfer from the seller to the buyer when the goods are at the disposal of the buyer Cost transfer from the seller to the buyer when the goods are at the disposal of the buyer
FCA Carriage to be arranged by the buyer or the seller on the buyer's behalf Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place Cost transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place
FAS Carriage to be arranged by the buyer Risk transfer from the seller to the buyer when the goods have been placed alongside the ship Cost transfer from the seller to the buyer when the goods have been placed alongside the ship
FOB Carriage to be arranged by the buyer Risk transfer from the seller to the buyer when the goods pass the ship's rail Cost transfer from the seller to the buyer when the goods pass the ship's rail
CFR Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods pass the ship's rail Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
CIF Carriage and insurance to be arranged by the seller Risk transfer from the seller to the buyer when the goods pass the ship's rail Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
CPT Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods have been delivered to the carrier Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
CIP arriage and insurance to be arranged by the seller Risk transfer from the seller to the buyer when the goods have been delivered to the carrier Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
DAF Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods have been delivered at the frontier Cost transfer from the seller to the buyer when the goods have been delivered at the frontier
DES Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship
DEQ Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the quay Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the quay
DDU Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer
DDP Carriage to be arranged by the seller Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer