INCOTERMS DEFINITION
This explanation of Incoterms™ has been summarized and should not be the sole source for determining contractual Incoterms™.
Additional information is available from the International Chamber of Commerce
Check also:
How costs are shared between buyer and seller according to the Incoterm chosen Click here| Incoterm | Definition |
|---|---|
| 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. The buyer has to bear all costs and risks involved in taking the goods from the seller's premises. USAGE: Any mode of transport, including multimodal transport |
| FCA | Free Carrier… named place “Free CArrier” means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The seller must bear all risks of loss of or damage to the goods until such time as they have been delivered. USAGE: Any mode of transport, including multimodal transport |
| FAS | Free Alongside Ship…named port of shipment “Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. 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. USAGE: Maritime and inland waterway transport only |
| FOB | Free On Board… named port of shipment “Free On Board” means that the seller delivers when the goods pass the ship's rail at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. USAGE: Maritime and inland waterway transport only |
| CFR | Cost, and Freight… named port of destination "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 and bear all risks of loss of or damage to the goods until they have passed the ship's rail at the port of shipment. The CFR term requires the seller to clear the goods for export. USAGE: Maritime and inland waterway transport only |
| CIF | Cost, Insurance, Freight… named port of destination “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 and bear all risks of loss of or damage to the goods until they have passed the ship's rail at the port of shipment. In CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. USAGE: Maritime and inland waterway transport only |
| CPT | Carriage Paid To… named place of destination “Carriage Paid To” means that the seller delivers the goods to the carrier nominated by him. The seller must pay the cost of carriage necessary to bring the goods to the named destination and bear all risks of loss of or damage to the goods until such time as they have been delivered. USAGE: Any mode of transport, including multimodal transport |
| CIP | Carriage and Insurance Paid To…named place of destination «Carriage and Insurance Paid to...» means that the seller delivers the goods to the carrier nominated by him. The seller must in addition pay the cost of carriage necessary to bring the goods to the named destination and bear all risks of loss of or damage to the goods until such time as they have been delivered. In CIP the seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. USAGE: Any mode of transport, including multimodal transport |
| DAF | Delivered At Frontier… named place “Delivered At Frontier” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The seller must contract at his own expense for the carriage of the goods to the named point, if any, at the place of delivery at the frontier. The seller must bear all risks of loss of or damage to the goods until such time as they have been delivered. USAGE: Any mode of transport when goods are to be delivered at the land frontier |
| DES | Delivered Ex Ship… named port of destination “Delivered Ex Ship” means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship, not cleared for import, at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. USAGE: Maritime and inland waterway transport only |
| DEQ | Delivered Ex Quay (Duty Paid)… named port fo destination “Delivered Ex Quay” means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import. USAGE: Maritime and inland waterway transport only |
| DDU | Delivered Duty Unpaid… named place of destination “Delivered Duty Unpaid” means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any «duty» (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. Such «duty» has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time. USAGE: Any mode of transport, including multimodal transport |
| DDP | Delivered Duty Paid… named place of destination “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 the costs 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 and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. USAGE: Any mode of transport, including multimodal transport |