INCOTerms® & Responsibilities

The purpose of Incoterms® is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods. Incoterms deal with a number of identified obligations imposed on the parties and the distribution of risk between the parties.

Click here for INCO Terms Definitions

In total 11 Incoterms have been defined which are grouped into four basically different categories, applicable for sea and inland waterway transport or for all modes of transport:

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11 INCOTerms 2010
EXW - Ex Works (named place)
FCA – Free Carrier (named place)
FAS – Free Alongside Ship (named place)
FOB – Free On Board (named port of shipment)
CFR – Cost and Freight (named port of destination)
CIF – Cost, Insurance and Freight (named port of destination)
CPT – Carriage Paid To (named place of destination)
CIP – Carriage and Insurance Paid To (named place of destination)
DAT – Delivered at Terminal (named terminal at port or place of destination)
DAP – Delivered at Place (named place of destination)
DDP – Delivered Duty Paid (named place of destination)

4 General Groups of Terms
“E” term: seller’s obligation (& control of shipment) is at its minimum
“F” terms: require the seller to deliver the goods for carriage as instructed by the buyer
“C” terms: require the seller to contract carriage on usual terms at his own expense
“D” terms: seller’s obligation & control at its maximum

Incoterms® is a Registered Trademark of the International Chamber of Commerce.
Complete information on Incoterms® 2010 is available at the ICC website, www.iccwbo.org/incoterms.