Incoterms
- 2010
Incoterms for Multi-Modal Use:
- EXW Ex Works
- DAT Delivered at Terminal
- FCA Free Carrier
- DAP Delivered at Place
- CPT Carriage Paid To
- DDP Delivered Duty Paid
- CIP Carriage and Insurance Paid To
Incoterms for Non-Containerized Ocean Freight:
- FAS Free Alongside Ship
- CFR Cost and Freight Ocean
- FOB Free On Board
- CIF Cost, Insurance, Freight
| Cost Headings | EXW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAT | DAP | DDP |
| Loading at seller’s premises | B(1) | S | S | S | S | S | S | S | S | S | S |
| Domestic pre-carriage/Local cartage | B | (2) | S | S | S | S | S | S | S | S | S |
| Trade documentation in country of export | B | S | S | S | S | S | S | S | S | S | S |
| Export Customs clearance and any duty or taxes payable upon export | B | S | S | S | S | S | S | S | S | S | S |
| Loading at carrier’s terminal at origin | B | B | B | S | S | S | S | S | S | S | S |
| Loading of vessel at port of origin | B | B | B | S | S | S | S | S | S | S | S |
| International freight (main carriage) | B | B | B | B | S | S | S | S | S | S | S |
| Transport cargo insurance | B | B | B | B | B | S | B | S | S | S | S |
| Unloading of vessel at port of destination | B | B | B | B | B(3) | B(3) | S | S | S | S | S |
| Unloading at destination terminal | B | B | B | B | N/A | N/A | B(3) | B(3) | S | S | S |
| Trade documentation in country of import | B | B | B | B | B | B | B | B | B | B | S |
| Import Customs clearance and any duty or taxes payable upon import | B | B | B | B | B | B | B | B | B | B | S |
| Domestic on-carriage/Local cartage | B | B | B | B | B | B | B | B | B | S (4) | S |
| Unloading at buyer’s premises | B | B | B | B | B | B | B | B | B | B | B |
| Other costs: Cost distribution according to party agreement not regulated in Incoterms | |||||||||||
Buyer = B Seller = S
(1) It can be stipulated with a specific instruction that the seller, at his own expense, is to be responsible for certain loading requirements. This must be written into the contract in order for it to be effective.
(2) The named place following the INCOTERM “FCA” determines the point of transfer. If the named place is the seller’s premise, the seller must LOAD the goods on the carrier’s vehicle supplied by the buyer. If the named place is the carrier’s terminal, the seller must DELIVER the goods to the named terminal and the buyer is responsible for payment to UNLOAD the vehicle at the carrier’s terminal.
(3) Buyer pays unloading costs unless such costs were for the seller’s account under the contract of carriage.
(4) The point stated after “Delivered At Place” determines who is to pay the cost. If the point is indicated as DAP (buyer’s premises), the cost is to be paid by the seller. If the trade term reads DAP (terminal) the seller has to pay the cost to that terminal, and the buyer has to pay the cost to final destination.
Incoterms Glossary
EXW: EX WORKS
(… named place of delivery)
Seller delivers when they place the goods at the disposal of the buyer at the seller’s premises or another named place (i.e: ex works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
FCA: FREE CARRIER
(… named place of delivery)
Seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place.
If delivery takes place at the seller’s premises, the seller is responsible for loading. If delivery takes place at any other location, the seller must deliver the goods to the named place but is not responsible for unloading.
FAS: FREE ALONGSIDE SHIP
(…named port of shipment)
Seller delivers when goods are placed alongside the vessel at the named port of shipment, cleared for export.
FOB: FREE ON BOARD
(…named port of shipment)
Seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, cleared for export.
Note: FAS & FOB may not be appropriate where goods are handed over to the carrier before they are loaded on board the vessel (for example goods shipped in containers, which are typically delivered to a terminal). In such situations, the FCA term should be used.
CFR: COST AND FREIGHT
(… named port of destination)
Seller pays to bring the goods to the named port of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are on board the vessel.
CIF: COST, INSURANCE AND FREIGHT
(… named port of destination)
Seller pays to bring the goods to the named port of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are on board the vessel. Seller must also contract for insurance against the buyer’s risk of loss of or damage to the goods during carriage.
Note: CFR & CIF may not be appropriate where goods are handed over to the carrier before they are loaded on board the vessel (for example goods shipped in containers, which are typically delivered to a terminal). In such situations, CPT or CIP terms should be used.
CPT: CARRIAGE PAID TO
(… named place of destination)
Seller pays to bring the goods to the named place of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are handed over to the carrier.
CIP: CARRIAGE AND INSURANCE PAID TO
(… named place of destination)
Seller pays to bring the goods to the named place of destination, but the risk of loss or damage and any costs relating to the goods while in transit pass to the buyer once the goods are handed over to the carrier. Seller must also contract for insurance against the buyer’s risk of loss of or damage to the goods during carriage.
DAT: DELIVERED AT TERMINAL
(… named port or place of destination)
Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. The seller bears all risks and costs involved in bringing the goods to and unloading them at the terminal at the named place of destination.
DAP: DELIVERED AT PLACE
(… named place of destination)
Seller delivers the goods to the buyer at the named place of destination, not cleared for import and not unloaded from any delivering means of transport.
DDP: DELIVERED DUTY PAID
(… named place of destination)
Seller delivers the goods to the buyer, cleared for import, and not unloaded from the arriving means of transport at the named place of destination. Seller bears all risks and costs including any duty or customs formalities at destination.
