INTERNATIONAL TERMS OF SALE

INCOTERMS 2010

In 1936 the first version Incoterm born, Incoterms 2010 is the latest version of Incoterms, International

Chamber of Commerce (ICC) in Paris, France and in effect since January 1, 2011.

International Chamber of Commerce Incoterms created as a worldwide standard will be used in the purchase

contract to the rights and obligations of buyers and sellers – in particular, related to the delivery of the goods.

Conditions of Incoterms 2010 delivery included 11 conditions:

1. EXW – Ex Works

2. FCA – Free Carrier

3. CPT – Carriage Paid To

4. CIP – Carriage and Insurance Paid To

5. DAT – Delivered at Terminal

6. DAP – Delivered at Place

7. DDP – Delivered Duty Paid

8. FAS – Free Alongside Ship

9. FOB – Free on Board

10. CFR – Cost and Freight

11. CIF – Cost, Insurance and Freight

We have provided definitions for the two classes of Incoterms, any transport mode and maritime only,

along with a chart below.

A. TERMS FOR ANY TRANSPORT MODE

 EXW – EX WORKS (… named place of delivery)

 The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears

full costs and risks of moving the goods from there to destination.

 FCA – FREE CARRIER (… named place of delivery)

 The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads

the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs

and risks of moving the goods to destination.

 CPT – CARRIAGE PAID TO (… named place of destination)

 The Seller pays for moving the goods to destination. From the time the goods are transferred to the

first carrier, the Buyer bears the risks of loss or damage.

 CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)

 The Seller pays for moving the goods to destination. From the time the goods are transferred to the

first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo

insurance.

 DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination)

 The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at

the Buyer’s disposal at a named terminal at the named port or place of destination. “Terminal”

includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or

air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at

the terminal at the named port or place of destination.

 DAP – DELIVERED AT PLACE (… named place of destination)

 The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of

transport ready for unloading at the names place of destination. The Seller bears all risks involved in

bringing the goods to the named place.

 DDP – DELIVERED DUTY PAID (… named place)

 The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all

costs and risks of moving the goods to destination, including the payment of Customs duties and

taxes.

B. MARITIME-ONLY TERMS

 FAS – FREE ALONGSIDE SHIP (… named port of shipment)

 The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of

loss or damage.

 FOB – FREE ON BOARD (… named port of shipment)

 The Seller delivers the goods on board the ship and clears the goods for export. From that point, the

Buyer bears all costs and risks of loss or damage.

 CFR – COST AND FREIGHT (… named port of destination)

 The Seller clears the goods for export and pays the costs of moving the goods to destination. The

Buyer bears all risks of loss or damage.

 CIF – COST INSURANCE AND FREIGHT (… named port of destination)

 The Seller clears the goods for export and pays the costs of moving the goods to the port of

destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo

insurance.

* Under the conditions of international trade Incoterms 2010, the division of responsibility for transport is

divided as follows:

+ Group 1: The right of the sellers shipping: CFR, CIF, CPT, CIP, DAT, DAP, DDP.

+ Group 2: The right of buyers shipping: EXW, FCA, FAS, FOB.

INCOTERMS CHART

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