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INCOTERM-2010
INTERNATIONAL TERMS OF SALE

The International Chamber of Commerce created Incoterms as a worldwide standard to be used in contracts of sale for expressing the rights and obligations of buyers and sellers – specifically, regarding the delivery of the goods. We have provided definitions for the two classes of Incoterms, any transport mode and maritime only, along with a chart below.

1. TERMS FOR ANY TRANSPORT MODE
EXW – EX WORKS (Place of Delivery)

The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination.

FCA – FREE CARRIER (Place of Delivery)

The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination.

CPT – CARRIAGE PAID TO (Place of Destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage.

CIP – CARRIAGE AND INSURANCE PAID TO (Place of Destination)

The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance.

DAT – DELIVERED AT TERMINAL (Terminal at Port or Place of Destination)

The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer’s disposal at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

DAP – DELIVERED AT PLACE (Place of Destination)

The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place.

DDP – DELIVERED DUTY PAID (Place of Destination)

The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.

2. MARITIME-ONLY TERMS
FAS – FREE ALONGSIDE SHIP (Port of Shipment)

The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage.

FOB – FREE ON BOARD (Port of Shipment)

The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.

CFR – COST AND FREIGHT (Port of Destination)

The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage.

CIF – COST INSURANCE AND FREIGHT (Port of Destination)

The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.

Incoterm Chart