Incoterms 2010

Transport obligations, costs and risks

Delivery point signifies transfer of risk and cost

Legend

Seller Seller – blue – left Buyer Buyer – red – right


1. Rules for any mode or modes of transport

1.1. Departure

1.1.1. Main carriage not paid by seller

Under EXW, the seller minimizes its risk by only making the golds available at its own premises

EXW EX Works
(… named place of delivery)
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EXW info graphics

Under FCA, unless otherwise agreed, the seller arranges and pays for the pre-carriage in the country of export

FCA Free Carrier
(… named place of delivery)
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FCA info graphics


1.1.2. Main carriage paid by seller

Under CPT, CIP, CFR and CIF rules, the seller arranges and pays for the main carriage but without assuming the risk of the main carriage. The seller also has to pay costs for carriage an, under CIP and CIF, for insurance.

CPT Carriage Paid To
(… named place of destination)
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CPT info graphics

Seller contracts for main carriage up to named place/point in country of destination

CIP Carriage and Insurance Paid to
(… named place of destination)
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CIP info graphics

In addition to the obligations under CPT, the seller also contracts for insurance up to the named place/point in the country of destination


1.2. Arrival

DAT Delivered at Terminal
(… named terminal at port or place of destination)
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DAT info graphics

Seller undertakes to place the goods at the disposal of the buyer unloaded from the arriving mean of transport at the agreed place/point of destination.

DAP Dilivered at Place
(… named place of destination)
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DAP info graphics

Seller undertakes to place the goods at the disposal of the buyer ready for unloading by the buyer at the agreed place/point of destination.

DDP Delivered Duty Paid
(… named place of destination)
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DDP info graphics

Seller undertakes to place the goods at the disposal of the buyer at the agreed place/point of destination and to clear the goods for import and pay duty and other official charges (unless otherwise agreed)


2. Rules for sea and inland waterway transport

2.1. Main carriage not paid by seller

FAS Free Alongside Ship
(… named port of shipment)
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FAS info graphics

Seller undertakes to place the goods alongside the ship nominated by the buyer.

FOB Free On Board
(… named port of shipment)
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FOB info graphics

Seller undertakes to place the goods on board the ship nominated by the buyer.


2.2. Main carriage paid by seller

CFR Cost and Freight
(… named port of destination)
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CFR info graphics

Seller pays to contract of carriage to the named port of destination.

CIF Cost, Insurance and Freight
(… named port of destination)
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CIF info graphics

In addition to obligations under CFR, the seller also contracts for insurance up to the named port in the country of destination.


Warning

Warning: This chart is not intended to be used alone, and should always be used in conjunction with the INCOTERMS® 2010

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