Incoterms 2010

Compiled by :
J.Radhakrishnan
July 2015

International Commercial
Term
Who defines INCOTERMS ?
The Incoterms rules are created and published
by the International Chamber of Commerce (ICC)
and are revised from time to time. The most recent
revision is Incoterms 2010 which came into force
on 1st January
2011
What are INCOTERMS ?
Incoterms are standard sets of trading terms and
conditions designed to assist traders when goods
are sold and transported.

Common terms in Transport

Seller
Buyer
Risk
Obligation
Responsibility
Insurance
Port
Consignor

Main Carriage
Pre Carriage
Forwarder
Customs
Export / Import
Duties
Taxes
Consignee

Questions that decide the

Incoterm
1) Who is responsible for the main
carriage the buyer or the seller?

2) If the seller is responsible for the main

carriage, where does the risk pass from
the seller to the buyer before the
main carriage, or after it?

What is Risk ?
Why is insurance required ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Risk ?

Elements of Cost in
transportation
Packaging
Loading charges
Delivery to the port / place
Export duty and taxes
Origin Terminal charges
Loading on Carriage
Carriage charges
Insurance
Destination terminal charges
Delivery to destination
Import duty & taxes

Classification of Incoterms
Group E : Departure term
EXW

Group F : Shipment term- Main carriage

unpaid
FCA, FAS, FOB

Group C: Shipment term Main carriage

paid
CFR, CIF, CPT, CIP

Group D: Arrival term

DDP, DAP, DAT

Incoterm Four Groups

Buyer responsible for all carriage EXW
Buyer arranges main carriage FAS; FOB; FCA
Seller arranges main carriage, but risk passes
before main carriage CFR; CIF; CPT; CIP
Seller arranges main carriage, risk passes after
main carriage DAT; DAP; DDP

Group E - Departure:
EXW. Ex Works (named
place)

BUYER
SELLER

EX
W

South
Carolina

------ = Buyers COST &

CONTROL

Group F - Main Carriage Unpaid:

FCA Free Carrier (named place) previously FRC
FAS Free Alongside Ship (named loading port)
FOB Free On Board (named loading port)

BUYER
SELLER
FCA
FCA

South
Carolina

FCA
FAS
FOB

=Sellers COST &

CONTROL
------ = Buyers COST &
CONTROL

Group C - Main Carriage Paid: (by the seller)

CFR Cost and Freight (named destination port)
CIF Cost, Insurance and Freight (named
destination port)
CPT Carriage Paid To (named destination)
CIP Carriage and Insurance Paid to (named
destination
CPT
CIP
BUYER
SELLER

CFR
CIF
CPT
CIP

South
Carolina

=Sellers COST &

CONTROL
------ = Buyers COST &
CONTROL

Group D - Arrival:
DAF Delivered At Frontier (named place)
DES Delivered Ex Ship (named port)
DEQ Delivered Ex Quay (named port)
DDU Delivered Duty Unpaid (named destination
place)
DDP Delivered Duty Paid (named destination
place)

DD
U
DD
P
BUYER

SELLER

DES
DEQ

DAF

South
Carolina

=Sellers COST &

CONTROL
------ = Buyers COST &
CONTROL

DD
U
DD
P