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Freight Directory > Trade Glossary > INCOTERMS 2010

INCOTERMS 2010 - 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.

TERMS FOR ALL TRANSPORT MODE

EXW - Ex Works -- 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 -- 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.

CPT - Carriage Paid To -- 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 -- Risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.

DAT - Delivered At Terminal -- Risk pass to buyer when seller delivers and unloads goods at named terminal. Used for any mode of transportation.

DAP - Delivered At Place -- Risk pass to buyer when seller delivers goods to named place ready for unloading. Used for any mode of transportation.

DDP - Delivered Duty Paid -- Risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

TERMS FOR SEA/INLAND WATERWAY TRANSPORT ONLY

FAS - Free Alongside Ship -- 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 -- 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 -- 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 -- 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.

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
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
DAT	Carriage to be arranged by the seller	Risk transfer from the seller to the buyer when the goods are delivered and unloaded at terminal	Cost transfer from the seller to the buyer when the goods are delivered and unloaded at terminal
DAP	Carriage to be arranged by the seller	Risk transfer from the seller to the buyer when the goods are delivered to named place ready for unloading	Cost transfer from the seller to the buyer when the goods are delivered at named place ready for unloading
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
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

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