What are Incoterms?

“Incoterms” is shorthand for “International Commercial Terms” as defined by the International Chamber of Commerce (ICC) in 1936.

Incoterms are used universally to define the key parts of freight forwarding. Incoterms are terms of sale that define who arranges for the payment and handling of the goods during shipping, from the moment the goods leave the seller’s (the manufacturer’s) door up until their arrival at the buyer’s (your) final destination.

EXW (EX Works)

EX Works EXW named place Incoterms® 2010 — This term may be used for either domestic or international trade.

FCA (Free Carrier)

Free Carrier FCA named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

CPT (Carriage Paid To)

Carriage Paid To CPT named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

CIP (Carriage & Insurance Paid)

Carriage and Insurance Paid CIP to named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

DAT (Delivered at Terminal)

Delivered at Terminal DAT named place Incoterms® 2010 — This term may be used regardless of the mode or modes of carriage to be used.

DAP (Delivered at Place)

Delivered at Place DAP named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

DDP (Delivered Duty Paid)

Delivered Duty Paid DDP named place of destination Incoterms® 2010 — This term may be used whatever mode or modes of transport may be used.

FAS (Free Alongside Ship)

Free Alongside Ship FAS named port of shipment Incoterms® 2010 — The seller delivers the goods when they are placed alongside the vessel nominated

FOB (Free on Board)

Free On Board FOB named port of shipment Incoterms® 2010 — There is a significant change from the meaning of this term in former revisions of

CFR (Cost & Freight)

Cost and Freight CFR named port of destination Incoterms® 2010 — This rule is intended for use only when carriage is by sea or inland waterway.

CIF (Cost Insurance & Freight)

Cost Insurance and Freight CIF named port of destination Incoterms® 2010 — This term is to be used only when carriage is by sea or inland waterway.