1. The Incoterms
David Saatchyan
Kriheli Mihail
S

2. Plan of the presentation
1. Means of The Incoterms
2. History of The Incoterms
3. Main groups
4. Conclusion

3. Means of The Incoterms
S The Incoterms rules or International Commercial terms are
a series of pre-defined commercial terms published by the
International Chamber of Commerce (ICC) widely used in
international commercial transactions. A series of three-letter
trade terms related to common sales practices, the Incoterms
rules are intended primarily to clearly communicate the tasks,
costs and risks associated with the transportation and delivery
of goods.

5. History of The Incoterms
S The Incoterms rules began development in 1921
with the forming of the idea by the International
Chamber of Commerce. In 1936, the first set of the
Incoterms rules was published. The first set
remained in use for almost 20 years before the
second publication in 1953. Additional amendments
and expansions followed in 1967, 1976, 1980, 1990
and 2000. The eighth and current version of the
Incoterms rules—Incoterms 2010—was published
on January 1, 2011

6. Group 1. The E term
(Departure)
S EXW. Ex Works (named
place of delivery)
This price is the Ex – Works
cost of the goods. The
buyers arranges collection
from the supplier and pays for
freight

7. Group 2. The F term (
Free, main carriage not paid by
the seller)
S FCA – Free Carrier (named place of delivery)
The free Carrier price includes all costs to a named point of
loading onto a container. The buyer pays for onward shipment and
insurance
S FAS – Free Alongside Ship (named port of shipment)
This price includes all costs to a named port of shipment. The
buyer pays for loading, onward shipment and insurance.
S FOB – Free on Board (named port of shipment)
This price includes all costs of the goods Free On Board a ship
whose destination is stated in the contract. The buyer pays for
onward shipment and insurance

9. Group 3. The C terms (main
carriage paid by the seller)
S CPT - Carriage Paid To (named place of destination)
The cost and transportation of the goods, Carriage Paid to a named destination in the buyers
country.
S CIP – Carriage and Insurance Paid to (named place of destination)
The cost and transportation of the goods, Carriage and Insurance Paid, to a named
destination in the buyer’s country
S CFR – Cost and Freight (named port of destination)
This price includes Cost and Freight, but not insurance, to a named port of destination in the
buyer’s country.
S CIF – Cost, Insurance and Freight (named port of destination)
This price covers Cost, Insurance and Freight to a named port of destination in the buyer’s
country.

11. Group 4. The D terms
(Delivered/Arrival)
S DDP – Delivered Duty Paid (named place of destination)
The cost, insurance and transportation of the goods Delivered Duty Paid
to the named port of destination.
S DAF – Delivered At Frontier (named place of delivery)
This term can be used when the goods are transported by rail and road.
The seller pays for transportation to the named place of delivery at the
frontier.
S DES – Delivered Ex Ship (named port of delivery)
The cost, insurance and transportation of the goods Delivered Ex-ship to
the named port of destination

12. S DEQ – Delivered Ex Quay (named
port of delivery)
This is similar to DES, but the passing
of risk does not occur until the goods
have been unloaded at the port of
destination.
S DDU – Delivered Duty Unpaid
(named place of destination)
This term means that the seller delivers
the goods to the buyer to the named
place of destination in the contract of

13. Questions
1. What are the Incoterms?
2. When was published the first set of the
Incoterms rules?
3. What does FOB mean?
4. What does CIF mean?

14. True or Fouls
1. The Incoterms rules or International Commercial terms are a
series of pre-defined commercial terms published by the
International Chamber of Commerce (ICC) rarely used in
international commercial transactions.
2. The Incoterms rules began development in 1921 with the
forming of the idea by the International Chamber of
Commerce.
3. CIF means the price that covers Cost, Insurance and Freight
to a named port of destination in the buyer’s country.
4. EXW is the Ex – Works cost of the goods. The buyers
arranges collection from the supplier and does not pay for
freight

15. Thank you for attention!