Incoterms® 2010 Simplified Incoterms® is a registered trademark of the International Chamber of Commerce (ICC), Paris, France. Incoterms or International Commercial terms are a series of international sales terms, published by the International Chamber of Commerce and widely used in international commercial transactions. The terms describe conditions of sale and are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. The use of Incoterms reduces or removes uncertainties arising from different interpretation by different countries. The scope of Incoterms is limited to matters relating to rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold and the terms are used to divide transaction costs and responsibilities between buyer and seller. The 11 new Incoterms® go into effect on January 01, 2011 RULES FOR ANY MODE OR MODES OF TRANSPORT EXW Ex Works (named place of delivery) FCA Free Carrier (named place of delivery) CPT Carriage Paid To (named place of destination) CIP Carriage And Insurance Paid To (named place of destination) DAT Delivered At Terminal (named terminal at port or place of destination) DAP Delivered At Place (named place of destination) DDP Delivered Duty Paid (named place of destination) RULES FOR SEA AND INLAND WATERWAY TRANSPORT FAS Free Alongside Ship (named port of shipment) FOB Free On Board (named port of shipment) CFR Cost And Freight (named port of destination) CIF Cost, Insurance and Freight (named port of destination) Incoterms® define the responsibilities of buyers and sellers for the domestic and international delivery of goods and determine how costs and risks are allocated. The words, “importer” and exporter” have been used instead of “buyer” and “seller” that relate more closely with international (cross-border) trade.
EXW Ex Works (named place of delivery) Exporter places goods at their premises at importer’s disposal, i.e. works, factory or warehouse. For example: EXW Street Address, City, Country or EXW City, Country if the named address has been specified in the contract of sale. Exporter has limited obligations to provide export information and is not obliged to load the goods on any conveyance. Moreover, importer has to organize export clearance from the country of shipment.
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- Fall '16
- Dr Ajape
- International Trade, Commercial item transport and distribution, CPT Destination City