Official Rules of the Chamber of Commerce (ICC) for the interpretation of trade terms commonly used in the purchase and sale of goods.
| | incoterms | transportation | ||
| E | output | Ex Works In Factory (... named place) | Any means of transportation | |
| | Main carriage unpaid | Free Carrier Free Carrier (... named place) | Any means of transportation | |
| | | Free Alongside Ship Free Alongside Ship (... named port of shipment) | Shipping and inland waterway only | |
| | | Free on Board Free On Board (... named port of shipment) | Sea and inland waterway only | |
| | Transportation | principal paid Cost and Freight Cost and Freight (... named port of destination) | Sea and inland waterway only | |
| | | Cost, Insurance and Freight Cost Insurance and Freight (... named port of destination) | Sea and inland waterway only | |
| | | Carriage Paid To Carriage Paid To (... named place of destination) | Any means of transportation | |
| | | Carriage and Insurance Paid To Carriage and Insurance Paid To (... named place of destination) | Any means of transport
| |
| | Arrival | Frontier (... named place) | Any means of transportation | |
| | | on Ship (... named port of destination) | Maritime and inland waterways exclusively internal | |
| | | Quay (... named port of destination) | Sea and inland waterway only | |
| | | Delivered Duty Unpaid Delivered Duty Unpaid (... named place of destination) | Any means of transportation | |
| | | Delivered Duty Paid Delivered Duty Paid (... Named place of destination) | Any means of transportation | |
| incoterms | MEANING (Text of the ICC) |
| EXW (Ex Works) -Works (... named place) | "In Plant" means the seller delivers the goods when available to the buyer at the seller's premises or another named place (ie works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle. This term thus represents the minimum obligation the seller and the buyer has to bear all costs and risks inherent in the receipt of the goods at the premises of the seller. However, if the parties wish the seller is responsible for the loading of the goods on departure and to bear the risks and all costs of such an operation should be made clear by adding expressions explicit in this regard in the contract of sale. This term should not be used when the buyer can not carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees to load at his cost and risk. |
| FCA (Free Carrier) Free Carrier (... named place) | "Free Carrier" means that the seller delivers the goods, cleared for export to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery affect the obligations of loading and unloading the goods at that place. If delivery takes place at the premises of the seller, it is responsible for loading. If delivery occurs elsewhere, the seller is not responsible for unloading. This term may be used for any mode of transport including multimodal transport. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to make a rail, road, air, sea, inland waterway or by a combination of these modes. If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled its obligation to deliver the goods when delivered to that person. |
| CPT (Carriage Paid To) Carriage Paid To (... named place of destination) | "Carriage Paid To" means that the seller delivers when the goods available to the carrier nominated by him but must in addition pay the cost of carriage necessary to bring the goods to destination. This means that the buyer bears all risks and any other costs incurred after the goods have been so delivered. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to make a rail, road, air, sea, inland waterway or by a combination of these modes. If subsequent carriers are used for transport to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport |
| (Carriage and Insurance Paid To) Carriage and Insurance Paid To (... named place of destination) | "Carriage and Insurance Paid up" means that the seller delivers when the goods available to the carrier nominated by itself but must in addition pay the cost of carriage necessary to bring the goods to destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the risk borne by the buyer for loss or damage of goods during transport. Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that, as that term CIP, it requires the seller to obtain insurance only on minimum cover. If the buyer wishes to have the protection of greater cover, need to agree as much expressly with the seller or to make additional insurance. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to make a rail, road, air, sea, inland waterway or by a combination of these modes of transport . If subsequent carriers are used for transportation to the place of destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport |
| DAF (Delivered at Frontier) Delivered at Frontier (... named place ) | "Delivered at Frontier" means that the seller delivers when the goods are made available to the buyer on the arriving means of transport not unloaded at the point and place of the frontier, but before the customs border of the adjoining country to be the goods cleared for export but not import . The term "frontier" may be used for any frontier including that of the exporting country. Therefore, it is vitally important to define the boundary in question precisely by always naming the point and place in the term agreed DAF. However, if the parties wish the seller is responsible for the unloading Merchandise transport and to bear the risks and costs of unloading, this should be clear by adding explicit wording to this effect in the contract of sale. This term may be used irrespective of the mode of transport when goods are to be delivered at a land border. When delivery is to take place in the port of destination, on board a ship or on the quay (wharf), should be used DES or DEQ terms |
| DDU (Delivered Duty Unpaid) Delivered Duty Unpaid (... named place of destination) | "Delivered duty paid" means that the seller delivers the goods to the buyer, not cleared for import and not unloaded from the media transport at arrival at the destination. The seller must bear all costs and risks involved in bringing the goods thereto, other than, where applicable, any "right" (which term includes the responsibility and risks of carrying out customs formalities and payment of formalities, duties customs, taxes and other charges) for import in the country of destination. This "right" borne by the buyer as well as any costs and risks caused by failure to clear the goods for import. However, if the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom as well as some of the costs payable upon import of the goods, should be made clear by adding expressions explicit in this regard in the contract of sale. This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the ship or on the quay (wharf), should then be used DES or DEQ terms |
| DDP (Delivered Duty Paid) Delivered Duty Paid (... named place of destination) | "Delivered Duty Paid" means that the seller delivers the goods to the buyer, cleared for import and not unloaded from any means of transport at arrival at the destination. The seller must bear all costs and risks involved in bringing the goods thereto including, where appropriate, any "right" (which term includes the responsibility and risk for customs formalities and payment procedures , customs duties, taxes and other charges) for import in the country. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation. This term should not be used if the seller is unable directly or indirectly import licensing. However, if the parties wish to exclude from the seller's obligations some of the costs payable upon import of the goods (such as value added tax: VAT) should be made clear by adding explicit wording to this effect in the contract of sale. If the parties wish the buyer assumes all risks and costs of import, the DDU term should be used. This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the ship or on the quay (wharf) should be used DES or DEQ terms |
shipping and inland waterway only
| incoterms | MEANING (Text of the ICC) |
| FAS (Free Alongside Ship) Free Alongside Ship (... named port of shipment) | "Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel at the port of shipment. This means that the buyer has to bear all costs and risks of loss or damage of goods from that moment. The FAS term requires the seller to clear the goods for export. IS A REVERSAL FROM PREVIOUS INCOTERMS VERSIONS WHICH REQUIRED THE BUYER TO ARRANGE FOR EXPORT CLEARANCE. However, if the parties wish the buyer to clear the goods for export should be made clear by adding explicit wording to this effect in the contract of sale. This term can only be used for transport by sea or by inland waterways |
| FOB (Free on Board) Free On Board (... named port of shipment) | "Free on Board" means the seller delivers when the goods pass the ship's rail at the port of shipment. This means that the buyer must bear all costs and risks of loss or damage to goods from that point. The FOB term requires the seller to clear the goods for export. This term may be used only for transport by sea or inland waterways. If the parties do not intend to deliver the goods across the time that passes the ship's rail, the FCA term should be used |
| CFR (Cost and Freight) Cost and Freight (... named port of destination) | "Cost and Freight" means that the seller delivers when the goods pass the ship's rail at the port of embarkation. The seller must pay the costs and freight necessary to bring the goods to the port of destination BUT the risk of loss or damage of goods, as well as any additional costs due to events occurring after the time delivery, are transferred from seller to buyer. The CFR term requires the seller to the customs clearance of goods for export. This term may be used only for transport by sea or inland waterways. If the parties do not intend to deliver the goods across the time exceeds the ship's rail, the CPT term should be used |
| ( Cost, Insurance and Freight) Cost Insurance and Freight (... named port of destination) | "Cost, Insurance and Freight" means that the seller delivers when the goods pass the ship's rail at the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the port of destination BUT the risk of loss or damage of goods, as well as any additional costs due to events occurring after the time delivery, are transferred from seller to buyer. However, in CIF the seller also has to procure marine insurance against buyer's risk for loss or damage of goods during transport. Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is obliged to obtain insurance only on minimum cover. If the buyer wants more coverage, you will need to agree as much expressly with the seller or to make his own extra insurance. The CIF term requires the seller to clear the goods for export. This term may be used only for transport by sea or inland waterways. If the parties do not intend to deliver the goods across the time that passes the ship's rail, the CIP term should be used |
| DES (Delivered Ex Ship) delivery ex ship (... named port of destination) | "Delivered Ex Ship" means that the seller delivers when the goods are made available to the buyer on board the ship not cleared for the import at the destination port agreed. The seller must bear all costs and risks involved in bringing the goods to the port of destination before discharging. If the parties wish the seller to bear the costs and risks of discharging the goods, DEQ term should be used. The term can be used only when the goods be delivered on board a vessel at the port of destination, after transport by sea, inland waterway or multimodal transport |
| DEQ (Delivered Ex Quay) Delivered Ex Quay (... named port of destination) | "Delivered Ex Quay" means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the port of destination. The seller has to bear costs and risks involved in bringing the goods to the port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer of the goods customs clearance for imports and payment of all formalities, duties, taxes and other charges upon import. IS A REVERSAL FROM PREVIOUS VERSIONS OF INCOTERMS it charged to SELLER'S CLEARANCE FOR IMPORT. If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods should be made clear by adding explicit wording to this effect in the contract of sale. This term may be used only when the goods are delivered, after being transported by sea routes inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) at the port of destination. However, if the parties wish to include in the seller's obligations the risks and costs of handling the goods from the quay to another place (warehouse, terminal, transport station, etc..) Inside or outside the port, should use DDU or DDP terms |
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