Introduction

The Incoterms Trade terms, published by the International Chamber of Commerce (ICC), that are commonly used in international contracts. Incoterms are used to make international trade easier by helping traders in different countries understand one another by standardizing terms and conditions across the countries. Importance :Intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. Accepted by governments, legal authorities and practitioners worldwide.

Ex Works (EXW)
The Sellers only responsibility is to make the goods available at the Sellers premises. The Buyer bears full costs and risks of moving the goods from there to destination.

Free Carrier (FCA)

The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Sellers premises From that point, the Buyer bears the costs and risks of moving the goods to destination.

Carriage Paid To (CPT)

Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage.

Carriage & Insurance Paid to (CIP) pays for moving the goods to destination. The Seller
From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance.

Delivered At Terminal (DAT)

The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination except for costs related to import clearance.
Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.

Delivered At Place (DAP)

The Seller bears all risks involved in bringing the goods to the named place. Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

Delivered Duty Paid (DDP)

The Seller delivers the goods -cleared for import to the Buyer at destination The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.

Free Alongside Ship (FAS)

The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage.

Free On Board (FOB)

The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.

Cost and Freight (CFR)

The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage.

Cost Insurance & Freight (CIF)

The Seller clears the goods for export and pays the costs of moving the goods to the port of destination.

The Buyer bears all risks of loss or damage.

The Seller, however, purchases the cargo insurance.

Eliminated terms
DAF Delivered At Frontier The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier. DES Delivered Ex Ship Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer.

 Contd.
DEQ Delivered Ex Quay
The passing of risk does not occur until the goods have been unloaded at the port of destination. DDU Delivered Duty Unpaid All the expenses are borne by the seller except for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination borne by the buyer.

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EXW FCA FAS FOB CFR CIF DAT

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Thank You