2. Incoterms â International Commercial Terms
ď§ Incoterms are shipping and trade terms used to define responsibility
between the importer and exporter for freight, insurance and other
costs e.g. loading, unloading expenses etc.
ď§ The terms are published in the Guide to Incoterms 2000 published by
the International Chamber of Commerce, Paris, France, and are used
worldwide.
3. Always 3-letter code plus named placeAlways 3-letter code plus named place
(port, place of receipt, âŚ)(port, place of receipt, âŚ)
e.g.:e.g.: FOB Plymouth orFOB Plymouth or FAS Victoria QuayFAS Victoria Quay
13 Terms 4 categories
E (exit) EXW
F (free)FCA, FAS, FOB
C(cost) CFR, CIF, CPT, CIP
D(delivery) DAF, DES, DEQ, DDU,
DDP
4. Group E departure
EXW Ex Works (⌠named place)
Group F Main carriage unpaid
FCA Free Carrier (âŚnamed place)
FAS Free Alongside Ship (âŚnamed place)
FOB Free On Board (âŚnamed port of shipment)
Group C Main Carriage Paid
CFR Cost and Freight (âŚnamed port of destination)
CIF Cost Insurance and Freight (âŚnamed port of destination)
CPT Carriage Paid To (âŚnamed place of destination)
CIP Carriage Insurance Paid To (âŚnamed place of destination)
Group D Arrival
DAF Delivered at Frontier (âŚnamed place)
DES Delivered Ex Ship (âŚnamed port of destination)
DEQ Delivered Ex Quay (âŚnamed port of destination)
DDU Delivered Duty Unpaid (âŚnamed place of destination)
DDP Delivered Duty Paid (âŚnamed place of destination)
5. Incoterms â The Abbreviations: E, F, C and D Terms
âEXWâ - Represents the sellerâs minimum obligation.
âFâ - Terms signifies that the Seller must hand over the goods to a
nominated carrier FREE of risk and expenses to the buyer.
âCâ - Terms signifies that the Seller must bear certain COSTS even after
the title has passed.
âDâ - Terms signifies that the goods must arrive at a stated DESTINATION
and the Seller undertakes to arrange and pay for the contract of
carriage and insurance.
6. Diagram of the Incoterms
EXW
FCA
FAS FOB
DEQ
DES
CPT
CIP
DDU
DDP
(DAF)
DAF
CFR
CIF
(DAF)
7. Incoterms â Concept
EXW
Ex Works
FOB
Free On Board
CFR
Cost & Freight
Exporter Importer
Cargo Insurance
DDP
Delivered Duty
Paid
Title to Cargo & Responsibility for freight cost and/or insurance
8. The seller fulfills his obligation to deliver when he has made the goods
available at his premises or another named place, such as the factory or
warehouse, to the buyer.
ď§ Carriage - To be arranged by the Buyer
ď§ Cost transfer - From the seller to the buyer when the goods are at the
disposal of the buyer.
ď§ Not cleared for export
ď§ No loading expenses on seller of collecting vehicle
OK OK
e EXW - Ex Works ⌠named place
9. EXW
Ex Works âŚ(named place)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs
Risks
Buyerâs Risks
Sellerâs
Cost
Buyerâs Cost
9
10. F-Term
⢠The âFâ âterms require the seller to deliver
goods for carriage as instructed by the buyer.
⢠FCA
⢠FAS
⢠FOB
11. ď§The seller fulfills his obligation when he delivers the goods into the custody of the
carrier at the named point.
ď§ Carriage - To be arranged by the buyer or by the seller on the buyerâs
behalf.
ď§ Cost transfer - From the seller to the Buyer when the goods have been
Delivered to the carrier at the named place..
ď§ Seller obligated to load goods on arriving vehicle if it arrives at the sellerâs
premises
OK
e FCA - Free Carrier ⌠named place
12. FCA
Free CarrierâŚ(named place)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
12
13. The seller fulfills his obligation to deliver when the goods have been placed
alongside the vessel at the named port of shipment. The buyer has to bear
all costs and risks of loss or damage to the goods. The FAS term requires
the seller to clear the goods for receipt.
ď§ Carriage - To be arranged by the buyer.
ď§ Cost transfer - From the seller to the buyer when the goods have been
placed alongside the ship.
ď§ Seller obliged to clear goods for export.
e FAS â Free Alongside Ship ⌠named port of shipment (Ship only).
14. FAS
Free AlongsideâŚ(named place)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
14
15. The seller fulfills his obligation to deliver when the goods are placed on board a ship
at the named port of shipment. All costs from that point forward, including freight
and insurance, are for the buyerâs account.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods pass the
ship rail.
ď§ The buyer bears all costs and risks of loss or damage to the goods from that point
ď§ Seller delivers when goods, cleared for export, pass the shipâs rail at the named
port of shipment.
e FOB â Free On Board ⌠named port of shipment (Ship only).
16. FOB
Free On BoardâŚ(named port of shipment)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
16
17. C-Terms
⢠The âCâ âterms require the seller to
contract for carriage at his expense â to a
specified point.
⢠CFR
⢠CIF
⢠CPT
⢠CIP
18. The seller must pay the costs and freight to bring the goods to the named
destination, but the risk of loss or damage are transferred from the seller to
the buyer when the goods pass the shipâs rail in the port of shipment.
ď§ The seller pays the costs and freight necessary to bring goods to port of
destination, but the buyer bears the risk of loss and additional costs
occurring after delivery.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer â At port of destination, buyer paying such costs as are
not for the sellerâs account under the contract of carriage.
ď§ Example â CFR SINGAPORE
e CFR â Cost & Freight ⌠named point of destination (Ship only).
19. CFR
Cost and Freight âŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs Risks
Sellerâs Cost Buyerâs Cost
19
20. The seller delivers when the goods pass the shipâs rail in the port of
shipment. The seller must pay the costs and freight necessary to bring the
goods to the named port of destination, but the risk of loss or damage are
transferred to the buyer.
ď§ Carriage - Carriage and insurance to be arranged by the seller.
ď§ Cost transfer â At port of destination, buyer paying such cost as are not
for the sellerâs account under the contract of carriage.
e CIF â Cost, Insurance & Freight ⌠named port of destination (Ship only).
21. CIF
Cost, Insurance and Freight âŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs
Risks
Buyerâs Risks
Sellerâs
Costs
Buyerâs Cost
21
22. The seller delivers the goods to the carrier nominated by him, but the seller
must also pay the cost of carriage to bring the goods to the named
destination. The buyer bears all risks and any other costs occurring after
the goods have been so delivered.
ď§ CPT â Carriage Paid To ⌠named place of destination.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer â At the port of destination, buyer paying such costs as
are not for the sellerâs account under the contract of carriage.
e CPT â Carriage Paid To ⌠named place of destination.
23. CPT
Carriage Paid To âŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs
Costs
23
24. The seller delivers the goods to the carrier and also procures insurance
against the risk of loss or damage during carriage. This term allows the
exporter the greatest control over all aspects of shipment.
ď§ CIP- Carriage and Insurance Paid To ⌠named place of destination.
ď§ Carriage - And insurance arranged by the seller.
ď§ Cost transfer â At place of destination, the Buyer paying such costs as
are not for the sellerâs account under the contract of
carriage..
e CIP- Carriage and Insurance Paid To ⌠named place of destination.
25. CIP
Carriage and Insurance Paid To âŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs Risks
Sellerâs Cost Buyerâs Cost
25
26. D-Terms
⢠The âDâ âterms require the seller to take the
goods all the way to destination at the border or
within the country of import.
⢠DAF
⢠DES
⢠DEQ
⢠DDU
⢠DDP
27. The seller delivers when the goods are placed at the disposal of the buyer on the
arriving means of transport not unloaded, cleared for export, but not cleared for
import at the named place at the frontier, but before the customs border of the
adjoining country. This term is used typically when goods are being moved
overland and delivery will take place at the frontier.
ď§ DAF â Delivered At Frontier ⌠named place.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods have been
delivered at the frontier
e DAF â Delivered At Frontier ⌠named place.
28. DAF
Delivered At FrontierâŚ(named place)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
28
29. The seller delivers when the goods are placed at the disposal of the buyer on
board the ship, not cleared for import at the named port of destination. The
seller must bear all the costs and risks involved in bringing the goods to the
named port of destination before discharging.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods are placed at
the disposal of the buyer on board the ship.
e DES â Delivered Ex-Ship ⌠named port of destination (Ship only).
30. DES
Delivered exShipâŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
30
31. The seller delivers when the goods are placed at the disposal of the buyer
not cleared for import on the quay at the named port of destination. The
seller bears costs and risks involved in bringing the goods to the named
port of destination and discharging the goods on the quay.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods are placed
at
the disposal of the buyer on the quay.
e DEQ â Delivered Ex Quay ⌠named port of destination (Ship only).
32. DEQ
Delivered Ex QuayâŚ(named port of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
32
33. The seller delivers the goods to the buyer, not cleared for import, and not
unloaded from any arriving means of transport at the named place of
destination. The seller has to bear the full cost and risk involved in
bringing the goods thereto other than any duties. Duty is borne by the
buyer.
ď§ DDU â Delivered Duty Unpaid ⌠named place of destination.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods are
placed at the disposal of the buyer.
e DDU â Delivered Duty Unpaid ⌠named place of destination.
34. DDU
Delivered Duty UnpaidâŚ(named place of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
34
35. The seller delivers the goods when cleared for import, and not unloaded
from any arriving means of transport at the named place of destination.
The seller must bear all costs and risks involved in bringing the goods
thereto including any duties.
ď§.
ď§ Carriage - To be arranged by the seller.
ď§ Cost transfer - From the seller to the buyer when the goods are placed
at the disposal of the buyer.
e DDP â Delivered Duty Paid âŚnamed place of destination
36. DDP
Delivered Duty PaidâŚ(named place of destination)
SELLER BUYER
Seller/
Exporter
Premises
Export
Documents
Formalities
Delivered
at named
place of:
Frontier/
Terminal/
Quay
Loading
Port of
Shipment
Onboard
Ship
Rail
Plane
Shipâs Shipâs
Rail Rail
Discharging
Port of
Arrival
Delivery at
named place of
destination:
Frontier/
Terminal/Quay
Import
Documents
Formalities
Buyer/
Importer
Premises
Sellerâs Risks Buyerâs
Risks
Sellerâs Cost Buyerâs Cost
36
37. Mode of Transport and Appropriate
Incoterm - Any Mode of Transport
⢠EXW
⢠FCA
⢠CPT
⢠CIP
⢠DAF
⢠DDU
⢠DDP
38. Mode of Transport and Appropriate
Incoterm â Maritime.
⢠FAS
⢠FOB
⢠CFR
⢠CIF
⢠DES
⢠DEQ
39. OK OK OK OK
e Incoterms - Summary
The International Commercial Terms, or Incoterms, is the accepted
standard for buyers and sellers worldwide to precisely determine who
pays for freight, insurance and customs duties. They also determine at
which point in the logistics movement of goods title transfer takes
place during transit.
40. Â EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP
SERVICE
S
ExÂ
Works
FreeÂ
Carrier
FreeÂ
Alongsi
de Ship
FreeÂ
OnboardÂ
Vessel
Cost &Â
Freight
CostÂ
Insurance &Â
Freight
Carria
geÂ
PaidÂ
To
CarriageÂ
InsuranceÂ
Paid To
Delive
red AtÂ
Fronti
er
Delivere
d ExÂ
Ship
Delivered ExÂ
Quay DutyÂ
Unpaid
Delivere
d DutyÂ
Unpaid
DeliveredÂ
Duty Paid
Warehou
seÂ
Storage
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Warehou
se Labor
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
ExportÂ
Packing
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
LoadingÂ
Charges
Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
InlandÂ
Freight
Buyer
Buyer/
Seller*
Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
TerminalÂ
Charges
Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forward
er's Fees
Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
LoadingÂ
OnÂ
Vessel
Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/A
irÂ
Freight
Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
ChargesÂ
On Â
ArrivalÂ
AtÂ
Destinati
on
Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Buyer Buyer Seller Seller Seller
Duty,Â
Taxes &Â
CustomsÂ
Clearanc
e
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
DeliveryÂ
ToÂ
Destinati
on
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller
â˘There are actually two FCA terms: FCA Seller's Premises where the seller is responsible only for loading the goods and
not responsible for inland freight; and FCA Named Place (International Carrier) where the seller is responsible for inland freight.
Editor's Notes
This section of the eUCP Internet Letter of Credit Workshop is on the International Commercial Terms, or INCOTERMS, used to denote title transfer and logistics cost responsibility between the importer and exporter during the transportation of goods and services.
Incoterms are shipping and trade terms used to define responsibility between the importer and exporter for freight, insurance and title transfer of goods and services.
The terms are published in the Guide to Incoterms 2000, published by the International Chamber of Commerce, Paris, France, and are used worldwide.
Incoterm abbreviations start with E, F, C and D.
âEXWâ - Represents the sellerâs minimum obligation.
âFâ - Terms signifies that the Seller must hand over the goods to a nominated carrier FREE of risk and expenses to the buyer.
âCâ - Terms signifies that the Seller must bear certain COSTS even after the title has passed.
âDâ - Terms signifies that the goods must arrive at a stated DESTINATION and the Seller undertakes to arrange and pay for the contract of carriage and insurance.
Incoterms are used in international trade with all payment methods, to include Documentary and Standby Letters of Credit, Trade Credits, International and Direct Collections, and Open Account transactions.
Their purpose is to specify to all the parties involved in the transaction whether the importer or exporter is responsible for paying for the cost of freight, cargo insurance and customs fees.
Incoterms also denote where during the movement of cargo title passes from the importer to the exporter.
EXW means Ex Works; and can be used with any mode of transportation.
The seller fulfills his obligation to deliver when he has made the goods available at his premises or another named place, such as the factory or warehouse, to the buyer.
EXW - Ex Works ⌠named place
Carriage - To be arranged by the Buyer
Cost transfer - From the seller to the buyer when the goods are at the disposal of the buyer.
Example - EXW CARLSBAD
FCA means Free Carrier; and can be used with any mode of transportation.
The seller fulfills his obligation when he delivers the goods into the custody of the carrier at the named point. Used for multimodal transport such as container or roll on â roll off.
FCA â Free Carrier ⌠named place
Carriage - To be arranged by the buyer or by the seller on the buyerâs behalf.
Cost transfer - From the seller to the Buyer when the goods have been Delivered to the carrier at the named place..
Example - FCA CARLSBAD
FAS means Free Alongside Ship; and can only be used with a ship mode of transportation.
The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods. The FAS term requires the seller to clear the goods for receipt.
FAS â Free Alongside Ship ⌠named port of shipment (Ship only).
Carriage - is To be arranged by the buyer.
Cost transfer â is From the seller to the buyer when the goods have been placed alongside the ship.
Example â FAS LONG BEACH.
FOB means Free on Board; and can only be used with a ship mode of transportation.
The seller fulfills his obligation to deliver when the goods are placed on board a ship at the named port of shipment. All costs from that point forward, including freight and insurance, are for the buyerâs account.
FOB â Free On Board ⌠named port of shipment (Ship only).
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods pass the shipâs rail.
Example â FOB LONG BEACH
CFR means Cost and Freight, and can only be used with a ship mode of transportation.
The seller must pay the costs and freight to bring the goods to the named destination, but the risk of loss or damage are transferred from the seller to the buyer when the goods pass the shipâs rail in the port of shipment.
CFR â Cost & Freight ⌠named point of destination (Ship only).
Carriage - To be arranged by the seller.
Cost transfer â At port of destination, buyer paying such costs as are not for the sellerâs account under the contract of carriage.
Example â CFR SINGAPORE
CIF means Cost, Insurance and Freight; and can only be used with ship mode of transportation.
The seller delivers when the goods pass the shipâs rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk of loss or damage are transferred to the buyer.
CIF â Cost, Insurance & Freight ⌠named port of destination (Ship only).
Carriage - Carriage and insurance to be arranged by the seller.
Cost transfer â At port of destination, buyer paying such cost as are not for the sellerâs account under the contract of carriage.
Example â CIF SINGAPORE.
CPT means Carriage Paid To; and can be used with any mode of transportation.
The seller delivers the goods to the carrier nominated by him, but the seller must also pay the cost of carriage to bring the goods to the named destination. The buyer bears all risks and any other costs occurring after the goods have been so delivered.
CPT â Carriage Paid To ⌠named place of destination.
Carriage - To be arranged by the seller.
Cost transfer â At the port of destination, buyer paying such costs as are not for the sellerâs account under the contract of carriage.
Example â CPT SINGAPORE.
CIP means Carriage and Insurance Paid To; and can be used with any mode of transportation.
The seller delivers the goods to the carrier and also procures insurance against the risk of loss or damage during carriage. This term allows the exporter the greatest control over all aspects of shipment.
CIP- Carriage and Insurance Paid To ⌠named place of destination.
Carriage - And insurance arranged by the seller.
Cost transfer â At place of destination, the Buyer paying such costs as are not for the sellerâs account under the contract of carriage.
Example â CIP SINGAPORE.
DAF means Delivered At Frontier; and cannot be used with ship or air mode of transportation.
The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named place at the frontier, but before the customs border of the adjoining country. This term is used typically when goods are being moved overland and delivery will take place at the frontier.
DAF â Delivered At Frontier ⌠named place.
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods have been delivered at the frontier.
Example â DAF LAREDO
DES means Delivered Ex-Ship; and can only be used with ship mode of transportation.
The seller delivers when the goods are placed at the disposal of the buyer on board the ship, not cleared for import at the named port of destination. The seller must bear all the costs ad risks involved in bringing the goods to the named port of destination before discharging.
DES â Delivered Ex-Ship ⌠named port of destination (Ship only).
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on board the ship.
Example â DES SINGAPORE
DEQ means Delivered Ex Quay; and can only be used with ship mode of transportation.
The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay at the named port of destination. The seller bears costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay.
DEQ â Delivered Ex Quay ⌠named port of destination (Ship only).
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer on the quay.
Example â DEQ SINGAPORE
DDU means Delivered Duty Unpaid; and can be used with any mode of transportation.
The seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the full cost and risk involved in bringing the goods thereto other than any duties. Duty is borne by the buyer.
DDU â Delivered Duty Unpaid ⌠named place of destination.
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer..
Example â DDU ROTTERDAM.
DDP means Delivered Duty Paid; and can be used with any mode of transportation.
The seller delivers the goods when cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller must bear all costs and risks involved in bringing the goods thereto including any duties.
DDP â Delivered Duty Paid âŚnamed place of destination.
Carriage - To be arranged by the seller.
Cost transfer - From the seller to the buyer when the goods are placed at the disposal of the buyer.
Example â DDP ROTTERDAM.
Incoterms in Summary:
The International Commercial Terms, or Incoterms, is the accepted standard for buyers and sellers worldwide to precisely determine who pays for freight, insurance and customs duties. They also determine at which point in the logistics movement of goods title transfer takes place during transit.