Incoterms 2010
Rules for Sea and Inland Waterway Transport:
FAS -
Free Alongside Ship: Risk passes to buyer, including payment of all
transportation and insurance costs, once delivered alongside the ship
(realistically at named port terminal) by the seller. The export
clearance obligation rests with the seller.
FOB -
Free On Board: Risk passes to buyer, including payment of all
transportation and insurance costs, once delivered on board the ship by
the seller. A step further than FAS.
CFR -
Cost and Freight: Seller delivers goods and risk passes to buyer when
on board the vessel. Seller arranges and pays cost and freight to the
named destination port. A step further than FOB.
CIF -
Cost, Insurance and Freight: Risk passes to buyer when delivered on
board the ship. Seller arranges and pays cost, freight and insurance to
destination port. Adds insurance costs to CFR.
Rules for Any Mode or Modes of Transportation:
EXW -
Ex Works: Seller delivers (without loading) the goods at disposal of
buyer at seller’s premises. Long held as the most preferable term for
those new-to-export because it represents the minimum liability to the
seller. On these routed transactions, the buyer has limited obligation
to provide export information to the seller.
FCA -
Free Carrier: Seller delivers the goods to the carrier and may be
responsible for clearing the goods for export (filing the EEI). More
realistic than EXW because it includes loading at pick-up, which is
commonly expected, and sellers are more concerned about export
violations.
CPT -
Carriage Paid To: Seller delivers goods to the carrier at an agreed
place, shifting risk to the buyer, but seller must pay cost of carriage
to the named place of destination.
CIP -
Carriage and Insurance Paid To: Seller delivers goods to the carrier at
an agreed place, shifting risk to the buyer, but seller pays carriage
and insurance to the named place of destination.
DAT -
Delivered at Terminal: Seller bears cost, risk and responsibility until
goods are unloaded (delivered) at named quay, warehouse, yard, or
terminal at destination. Demurrage or detention charges may apply to
seller. Seller clears goods for export, not import. DAT replaces DEQ,
DES.
DAP -
Delivered at Place: Seller bears cost, risk and responsibility for
goods until made available to buyer at named place of destination.
Seller clears goods for export, not import. DAP replaces DAF, DDU.
DDP -
Delivered Duty Paid: Seller bears cost, risk and responsibility for
cleared goods at named place of destination at buyers disposal. Buyer is
responsible for unloading. Seller is responsible for import clearance,
duties and taxes so buyer is not “importer of record”.
Explanations
