Incoterms 2010
RULES FOR ANY MODE OF TRANSPORT:
ExWorks (EXW): the seller fulfills his obligations by having the goods available for the
buyer to pick up at his premises or another named place (i.e. factory, warehouse, etc.). Buyer
bears all risk and costs starting when he picks up the products at the sellers location until the
products are delivered to his location. Seller has no obligation to load the goods or clear them
for export.
Free Carrier (FCA): the seller delivers the goods export cleared to the carrier stipulated by
the buyer or another party authorized to pick up goods at the sellers premises or another
named place. Buyer assumes all risks and costs associated with delivery of goods to final
destination including transportation after delivery to carrier and any customs fees to import
the product into a foreign country.
Carriage Paid To (CPT): seller clears the goods for export and delivers them to the carrier
or another person stipulated by the seller at a named place of shipment. Seller is responsible
for the transportation costs associated with delivering goods to the named place of destination
but is not responsible for procuring insurance.
Carriage and Insurance Paid To (CIP): seller clears the goods for export and delivers them
to the carrier or another person stipulated by the seller at a named place of shipment. Seller is
responsible for the transportation costs associated with delivering goods and procuring
minimum insurance coverage to the named place of destination.
Delivered at Terminal (DAT): seller clears the goods for export and bears all risks and costs
associated with delivering the goods and unloading them at the terminal at the named port or
place of destination. Buyer is responsible for all costs and risks from this point forward
including clearing the goods for import at the named country of destination.
Delivered at Place (DAP): seller clears the goods for export and bears all risks and costs
associated with delivering the goods to the named place of destination not unloaded. Buyer is
responsible for all costs and risks associated with unloading the goods and clearing customs
to import the goods into the named country of destination.
Delivered Duty Paid (DDP): seller bears all risks and costs associated with delivering the
goods to the named place of destination ready for unloading and cleared for import.
RULES FOR SEA AND I NLAND WATERWAY TRANSPORT:
Free Alongside Ship (FAS): seller clears the goods for export and delivers them when they
are placed alongside the vessel at the named port of shipment. Buyer assumes all risks/costs
for goods from this point forward.
Free on Board (FOB): seller clears the goods for export and delivers them when they are
onboard the vessel at the named port of shipment. Buyer assumes all risks/cost for goods
from this moment forward.
Cost and Freight (CFR): seller clears the goods for export and delivers them when they are
onboard the vessel at the port of shipment. Seller bears the cost of freight to the named port
of destination. Buyer assumes all risks for goods from the time goods have been delivered on
board the vessel at the port of shipment.
Cost, Insurance, and Freight (CIF): seller clears the goods for export and delivers them
when they are onboard the vessel at the port of shipment. Seller bears the cost of freight and
insurance to the named port of destination. Sellers insurance requirement is only for
minimum cover. Buyer is responsible for all costs associated with unloading the goods at the
named port of destination and clearing goods for import. Risk passes from seller to buyer
once the goods are onboard the vessel at the port of shipment.
