Incoterms 2000

INCOTERMS INFORMATION:

Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade.

Among the best known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To)

The internationally accepted terms of trade - Delivery Terms

INCOTERMS

INCOTERMS - information:

Place Where the seller delivers the goods to the buyer 

Costs What the seller pays up to that point of delivery, unless otherwise agreed with the buyer

Risk When the seller passes the transit risks to the buyer

(free means free from additional expense to the buyer up to the point of delivery)

EXW EX Works (named place)

Place At the works or warehouse

Costs The seller packs for export and prepares for despatch

Risk Passes when the goods are available for the buyer

FCA FREE CARRIER (named place)

Place At the place, and to the carrier, named by the buyer

Costs The seller pays up to the point of delivery of the goods and for export facilities

Risk Passes when the seller delivers the goods at the named place

FAS FREE ALONGSIDE SHIP (named shipment port)

Place Along side the ship, and at the shipment port, named by the buyer, or in lighters

Costs The seller pays for delivery of the goods alongside the ship, or in lighters

Risk Passes when the seller delivers the goods alongside the ship

(FAS can only be used for sea or inland waterway transport)

FOB FREE ON BOARD (named shipment port)

Place On board the ship at the named port

Costs The Seller pays for delivery, export formalities and loading, of goods over the ship's rail

Risk Passes when the goods have passed the ship rail at the shipment port

(FOB can only be used for sea or inland waterway transport)

CFR COST AND FREIGHT (named destination port)

Place On board the ship at the port of shipment

Costs The Seller pays for all costs and freight to named destination port

Risk Passes when the goods have passed the ship's rail at the port of shipment

(CFR can only be used for sea or inland waterway transport)

CIF COST, INSURANCE AND FREIGHT (named destination port)

Place On board the ship at the port of shipment

Costs The Seller pays for all costs and freight, and marine insurance, to the named destination port

Risk Passes when the goods have passes the ship's rail at the port of shipment

(CIF can only be used for sea or inland waterway transport)

CPT CARRIAGE PAYED TO (named destination place)

Place Where the goods are handed over to the first Carrier or Forwarder

Costs The Seller pays for all costs and freight to the named destination place

Risk Passes when the goods have been handed over to the first Carrier or Forwarder

CIP CARRIAGE AND INSURANCE PAID (named destination place)

Place Where the goods are handed over to the Carrier or Forwarder

Costs The seller pays for all costs and freight, and marine insurance, to the named destination place

Risk Passes when the goods have been over to the first Carrier or Forwarder

DAF DELIVERED AT FRONTIER (named place)

Place At the named frontier place, cleared for export but not for import

Costs The seller pays for all costs and freight to the named Frontier place

Risk Passes when the goods are available for the buyer

DES DELIVERED EX SHIP (named destination port)

Place On board ship at the named destination port

Costs The seller pays all costs and freight to the named destination port, but not unloading

Risk Passes when the goods are delivered to the named destination port, but still on board ship

(DES can only be used for sea or inland waterway transport)

DEQ DELIVERED EX QUAY (duty paid at named destination port)

Place On the quay at the named destination port

Costs The seller pays all costs and freight to named destination port, and unloading and import clearance and states whether duty is paid or unpaid

Risk Passes when the goods are unloaded and cleared for import at the destination port

DDU DELIVERED DUTY UNPAID (named destination port)

Place At the named destination place (in the country of import)

Costs The seller pays all costs to the named destination place, but not duties, taxes or import charges

Risk Passes when the goods are delivered to the named destination place

DDP DELIVERED DUTY PAID (named destination place)

Place At the named destination place (in the country of import)

Costs The seller pays all costs to the named destination place, including duties, taxes and import charges

Risk Passes when the goods are delivered to the named destination place

(if the Buyer is going to pay the local VAT, the TERM is "DDP, VAT unpaid")

ICC - More information about INCOTERMS 2000.

CFR - COST AND FREIGHT

CIF - COST INSURANCE AND FREIGHT

CIP - CARRIAGE AND INSURANCE PAID

CPT - CARRIAGE PAID

DAF - DELIVERED AT FRONTIER

DDP - DELIVERED DUTY PAID

DDU - DELIVERED DUTY UNPAID

DEQ - DELIVERED EX QUAY

DES - DELIVERED EX SHIP

EXW - EX WORKS

FAS - FREE ALONGSIDE SHIP

FCA - FREE CARRIER

FOB - FREE ON BOARD

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Subjects keywords: Incoterms