INCOTERMS 2010

According to Wikipedia, Incoterms may be defined as follows:

The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in International commercial transactions or procurement processes as the use in international sales is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms inform sales contract defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer. However, it does not constitute contract or govern law. Also it does not define where titles transfer and does not address the price payable, currency or credit items.

 

 

The table shows the sharing of responsibilities and costs between buyers and supplier according to the chosen incoterm (source: Incoterms 2010)

                    EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP
  Ex-Works Free Carrier Free Alongside Ship Free On-Board Vessel Cost & Freight Cost Insurance & Freight Carriage Paid to... Carriage & Insurance Paid To... Delivery At Frontier Delivered Ex-Ship Delivered Ex-Quay, Duty Unpaid Delivered Duty Unpaid Delivered Duty Paid
Warehouse storage at point of origin Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Warehouse labor at point of origin Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading at point of origin Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland freight Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Port receiving charges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarders fee Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading on ocean carrier Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/Air freight charges Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Charges at foreign Port/Airport Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Buyer Seller Seller Seller
Customs, Duties & Taxes abroad Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Delivery charges to final destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller

 

 

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