Incoterms 2010 Chart

INCOTERMS® 2010

Incoterms 2010 Chart is prepared by Import-Export Services Pty Ltd
For illustrative purposes only. The full text of the rules are contained in International Chamber of Commerce publication 715
The word “Incoterms” is a registered trademark of the International Chamber of Commerce

 

RULES FOR ANY MODE OR MODES OF TRANSPORT

Suitable for transport by land, air, sea or any combination of them
These are the correct rules to use for shipment by sea in containers (LCL & FCL)
In each of these rules, risk passes from seller to buyer at the point of delivery
These rules are suitable for both domestic and international trade, references to export and import clearances are if applicable

EXW – EX WORKS (named place of delivery)

DELIVERY & RISK **
COST **

Seller makes goods available at his premises, not loaded on collecting vehicle, not cleared for export
This term should not be used when the buyer cannot itself directly or indirectly carry out export formalities
Suitable for domestic trade while FCA is usually more appropriate for international trade
This term represents the minimum obligations for the seller, maximum obligations for the buyer

FCA – FREE CARRIER (named place of delivery)

DELIVERY & RISK ************
COST ************

Seller delivers goods to the buyer’s carrier, cleared for export
If delivered at seller’s premises then seller must load collecting vehicle
If delivered by seller to carrier’s premises or elsewhere, seller does not unload the vehicle

CPT – CARRIAGE PAID TO (named place of destination)

DELIVERY & RISK ************
COST ************************************

Seller delivers goods to the first carrier, cleared for export
Seller contracts and pays for carriage to destination place
This term is effectively “FCA plus freight prepaid”

CIP – CARRIAGE AND INSURANCE PAID TO (named place of destination)

DELIVERY & RISK ************
COST ************************************

Seller delivers goods to the first carrier, cleared for export
Seller contracts and pays for carriage to destination place
Seller contracts and pays for insurance cover against the buyer’s risk during transit
This term is effectively “FCA plus freight and insurance prepaid”

DAT – DELIVERED AT TERMINAL (named terminal at port or place of destination)

DELIVERY & RISK ************************************
COST ************************************

Seller delivers goods to a named terminal at port or place of destination, unloaded from arriving means of transport
Seller is not responsible for import customs formalities

DAP – DELIVERED AT PLACE (named place of destination)

DELIVERY & RISK ************************************
COST ************************************

Seller delivers when goods are placed at the disposal of the buyer at a named place of destination, not unloaded from arriving means of transport
Seller is not responsible for import customs formalities
If the delivery place is beyond the terminal, such as to buyer’s premises, then seller’s risk and cost resume once the buyer completes import customs formalities

DDP – DELIVERED DUTY PAID (named place of destination)

DELIVERY & RISK **********************************************************
COST **********************************************************

Seller delivers when goods are placed at the disposal of the buyer at a named place of destination, often at buyer’s premises, not unloaded from arriving means of transport
Seller is responsible for import customs formalities, including payment of duties and taxes
This term should not be used when the seller cannot itself directly or indirectly carry out import formalities
This term represents the maximum obligations for the seller, minimum obligations for the buyer

FAS – FREE ALONGSIDE SHIP (named port of shipment)

DELIVERY & RISK ********************
COST ********************

Seller delivers when goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment, cleared for export
Where the goods are in containers, it is typical for the seller to hand the goods over to the carrier at a terminal, not alongside the ship, so the FCA rule should be used

FOB – FREE ON BOARD (named port of shipment)

DELIVERY & RISK ************************
COST ************************

Seller delivers when goods are placed on board the vessel nominated by the buyer at the named port of shipment, cleared for export
Where the goods are in containers, it is typical for the seller to hand the goods over to the carrier at a terminal, not on board the ship, so the FCA rule should be used

CFR – COST AND FREIGHT (named port of destination)

DELIVERY & RISK ************************
COST ************************************************

Seller delivers when goods are placed on board the vessel at the named port of shipment, cleared for export
Seller contracts and pays for carriage to the destination port
Where the goods are in containers, it is typical for the seller to hand the goods over to the carrier at a terminal, not on board the ship, so the CPT rule should be used
This term is effectively “FOB plus freight prepaid”

CIF – COST INSURANCE AND FREIGHT (named port of destination)

DELIVERY & RISK ************************
COST ************************************************

Seller delivers when goods are placed on board the vessel at the named port of shipment, cleared for export
Seller contracts and pays for carriage to the destination port
Seller contracts and pays for insurance cover against the buyer’s risk during transit
Where the goods are in containers, it is typical for the seller to hand the goods over to the carrier at a terminal, not on board the ship, so the CIP rule should be used
This term is effectively “FOB plus freight and insurance prepaid”

 

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