Incoterms


"Incoterms" are the official International Chamber of Commerce (ICC) rules for the interpretation of
international trade terms that defines the respective roles of the buyer and seller in the arrangement of
transportation and other responsibilities and clarify when the ownership of the goods takes place.

Following is an overview that briefly describes each of the 13 terms contained in Incoterms 2000. The descriptions, however, provide only a basic summary of the terms and they should not be used for
business decision-making purposes.

Revised Incoterms 2011
Group E- Departure
EXW Ex Works
FCA Free Carrier
Group F- Main carriage Unpaid
FAS Free Alongside Ship
FOB Free On Board
CFR Cost and Freight
CIF Cost, Insurance & Freight
CPT Carriage Paid To
Group C - Main Carriage Paid
CIP Carriage & Insurance Paid To
DAT Delivered At Terminal
DAP Delivered At Place
Group D - Arrival
DDP Delivered Duty Paid

EXW: Ex Works (named place)
"Ex works" means that the seller delivers when he places the goods at the disposal of the buyer at the
seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export  and not loaded on any collecting vehicle. This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller's premises.

FCA: Free Carrier
"Free Carrier" means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at the place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading

FAS: Free Alongside Ship
"Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel at
the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or
damage to the goods from that moment. The FAS term requires the seller to clear the goods for export.
This is the reversal from previous Incoterms versions, which required the buyer to arrange for export clearance.

FOB: Free on Board
"Free on Board" means that the seller delivers when the goods pass the ship's rail at the named port of
shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods
from that point. The FOB terms requires the seller to clear the goods for export.

CFR: Cost and Freight
"Cost and Freight" means that the seller delivers when the goods pass the ship's rail in the port of
shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of
destination. But the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.

CIF: Cost Insurance and Freight
"Cost, Insurance and Freight" means that the seller delivers when the goods pass the ship's rail in the
port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named
port of destination. But the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to obtain marine insurance against the buyer's risk of loss of or damage to the goods during the carriage.

CPT: Carriage paid to
"Carriage paid to" means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and the buyer bears all risks and any other costs occurring after the goods have been delivered.

CIP: Carriage and Insurance paid to
"Carriage and Insurance Paid to" means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named
destination. This means that the buyer bears all risks and any additional costs occurring after the goods
have been delivered. However, in CIP the seller also has to obtain insurance against the buyer's risk of
loss of or damage to the goods during the carriage. The seller contacts for insurance and pays the
insurance premium.

DAP: Delivered At Place
means that the Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

DAT: Delivered At Terminal
means that Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DDP: Delivered Duty Paid
"Delivered Duty Paid" means that the seller delivers the goods to the buyer, cleared for import, and not
unloaded from any arriving means of transport at the named place of destination. The seller has to bear all cost and risks involved in bringing the goods thereto including, where applicable, any "duty" (which term includes the responsibility for and the risk of the carrying out of customs formalities, customs, duties, taxes and other charges) for import in the country of destination.