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Incoterms Explained

What are Incoterms?

INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment.

EX Works EXW

EX Works EXW

EX Works EXW named place Incoterms® 2010 - This term may be used for either domestic or international trade.

Free Carrier FCA

Free Carrier FCA

Free Carrier FCA named place Incoterms® 2010 - This term may be used whatever mode or modes of transport will be used.

Carriage Paid To CPT

Carriage Paid To CPT

Carriage Paid To CPT named place Incoterms® 2010 - This term may be used whatever mode or modes of transport will be used.

Carriage and Insurance Paid CIP

Carriage and Insurance Paid CIP

Carriage and Insurance Paid CIP to named place Incoterms® 2010 - This term may be used whatever mode or modes of transport will be used.

Delivered at Terminal DAT

Delivered at Terminal DAT

Delivered at Terminal DAT named place Incoterms® 2010 - This term may be used regardless of the mode or modes of carriage to be used. 

Delivered at Place DAP

Delivered at Place DAP

Delivered at Place DAP named place Incoterms® 2010 - This term may be used whatever mode or modes of transport will be used.

Delivered Duty Paid DDP

Delivered Duty Paid DDP

Delivered Duty Paid DDP named place of destination Incoterms® 2010 - This term may be used whatever mode or modes of transport may be used.

Free Alongside Ship FAS

Free Alongside Ship FAS

Terms for sea and inland waterways
Free Alongside Ship FAS named port of shipment Incoterms® 2010 - The seller delivers the goods when they are placed (on a quay or a barge) alongside the vessel nominated by the buyer at the named port of shipment. 

Free on Board FOB

Free on Board FOB

Terms for sea and inland waterways
Free On Board FOB named port of shipment Incoterms® 2010 - There is a significant change from the meaning of this term in former revisions of Incoterms: transfer of risk does not happen at the moment when goods cross the ship's rail.

Cost and Freight CFR

Cost and Freight CFR

Terms for sea and inland waterways
Cost and Freight CFR named port of destination Incoterms® 2010 - This rule is intended for use only when carriage is by sea or inland waterway.

Cost Insurance and Freight CIF

Cost Insurance and Freight CIF

Terms for sea and inland waterways
Cost Insurance and Freight CIF named port of destination Incoterms® 2010 - This term is to be used only when carriage is by sea or inland waterway.