Unit 5

The usage of 11 rules under

Incoterms 2010
SUMMARY OF CONTENT
1 EXW (named place of delivery)
2 FCA (named place of delivery)
3 FAS (named port of shipment)
4 FOB (named port of shipment)
5 CFR (named port of destination)
6 CIF (named port of destination)
SUMMARY OF CONTENT
7 CPT (named place of destination)
8 CIP (named place of destination)
9 DAT (named terminal
at port or place of destination)
10 DAP (named place of destination)
11 DDP (named place of destination)
1. EXW (named place of delivery)
e.g. EXW Shanghai Free Trade Zone, Sony Warehouse, China
 1. EXW (named place of delivery)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are at disposal of buyer at a
named placed (seller’s premises)

Buyer Buyer Buyer Buyer Buyer Buyer Buyer

 1. EXW (named place of delivery)
Other information:
Seller:
+ package & place the goods at Buyer‘s disposal at his premises
(factory, warehouse, place of sale) or other named place where
the goods are stored
+ notify the buyer when and where the goods shall be placed
at his disposal
Buyer:
+ loading the goods onto a vehicle
Recommended for:
+ seller who does not want to be responsible for movement of
goods to other warehouses or ports
2. FCA (named place of delivery)
e.g. FCA ABB – 1133 South Cavalier Drive, Alamo USA
 2. FCA (named place of delivery)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are delivered to first carrier

Seller Buyer Seller Buyer Buyer Buyer Buyer

 2. FCA (named place of delivery)
Other information:
Seller:
+ loading the goods onto the truck if the named place is the
seller’s premises
Buyer:
+ unloading the goods on the arriving vehicle and loading the
goods onto the truck if the named place is not the seller’s
premises
Recommended for:
+ containerized goods
3. FAS (named port of shipment)
e.g. FAS Pier 10 Port of Miami Florida
 3. FAS (named port of shipment)
Mode of transport: sea and inland waterway
Transfer of risk: when goods are placed alongside the ship at
the port of shipment

Seller Buyer Seller Buyer Buyer Buyer Buyer

 3. FAS (named port of shipment)
Other information:
Recommended for:
+ seller who has direct access to the vessel for loading,
e.g. bulk cargos or non-containerized goods (e.g. chemical
liquids)
4. FOB (named port of shipment)
e.g. FOB Valparaiso port, Chile
 4. FOB (named port of shipment)
Mode of transport: sea and inland waterway
Transfer of risk: when goods are placed on board the vessel at
the port of shipment

Seller Seller Seller Buyer Buyer Buyer Buyer

 4. FOB (named port of shipment)
Other information:
Recommended for:
+ seller who has direct access to the vessel for loading,
e.g. bulk cargos or non-containerized goods (commodities like
grain, oil…)
5. CFR (named port of destination)
e.g. CFR Port of Rotterdam
 5. CFR (named port of destination)
Mode of transport: sea and inland waterway
Transfer of risk: when goods are placed on board the vessel at
the port of shipment

Seller Seller Seller Seller B/S Buyer Buyer

 5. CFR (named port of destination)
Other information:
Recommended for:
+ seller who has direct access to the vessel for loading,
e.g. bulk cargos or non-containerized goods
Buyer:
+ pay THC at destination (if such charge is excluded in a
carriage contract)
Seller:
+ provide Buyer with on board Bill of Lading
6. CIF (named port of destination)
e.g. CIF Shanghai Port, China
 6. CIF (named port of destination)
Mode of transport: sea and inland waterway
Transfer of risk: when goods are placed on board the vessel at
the port of shipment

Seller Seller Seller Seller B/S Buyer Buyer

 6. CIF (named port of destination)
Other information:
Recommended for:
+ seller who has direct access to the vessel for loading,
e.g. bulk cargos or non-containerized goods
Buyer:
+ pay THC at destination (if such charge is excluded in a
carriage contract)
Seller:
+ provide Buyer with on board Bill of Lading
+ insurance cover (under C clause unless otherwise stated by
Buyer)
7. CPT (named place of destination)
e.g. CPT Customer warehouse Jakarta, Indonesia
 7. CPT (named place of destination)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are delivered to first carrier

Seller Seller Seller Seller B/S Buyer Buyer

 7. CPT (named place of destination)
Other information:
Buyer:
+ pay THC at destination (if such charge is excluded in a
carriage contract)
Recommended for:
+ containerized goods
8. CIP (named place of destination)
e.g. CIP Keilor Park warehouse, Melbourne, Australia
 8. CIP (named place of destination)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are delivered to first carrier

Seller Seller Seller Seller B/S Buyer Buyer

 8. CIP (named place of destination)
Other information:
Buyer:
+ pay THC at destination (if such charge is excluded in a
carriage contract)
Seller:
+ insurance cover (under C clause unless otherwise stated by
Buyer)
Recommended for:
+ containerized goods
 9. DAT (named terminal
e.g. DAT Singapore Port, at port or place of destination)
Pier 10, Singapore
 9. DAT (named terminal
at port or place of destination)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are placed at Buyer‘s disposal
unloaded from the arriving conveyance at a named terminal at
destination

Seller Seller Seller Seller Seller Buyer Buyer

 9. DAT (named terminal
at port or place of destination)
Other information:
Seller:
+ delivering the goods unloaded from the arriving conveyance
at the named place
“Terminal”:
+ quay, warehouse, container yard, container freight station,
road, rail or air cargo terminal
10. DAP (named place of destination)
e.g. DAP Patagonia Clothing warehouse, Ventura, CA, USA
 10. DAP (named place of destination)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are placed at Buyer‘s disposal on
the arriving means of transport at a named place at destination

Seller Seller Seller Seller Buyer Buyer Buyer

 10. DAP (named place of destination)
Other information:
Seller:
+ delivering the goods ready for unloading from the arriving
conveyance at the named place
11. DDP (named place of destination)
e.g. DDP 445 Ocean Road, Sydney, Australia
 11. DDP (named place of destination)
Mode of transport: any mode or multimodal
Transfer of risk: when goods are placed at Buyer‘s disposal on
the arriving means of transport at a named place at destination

Seller Seller Seller Seller Buyer Seller Buyer

 11. DDP (named place of destination)
Other information:
Seller:
+ delivering the goods ready for unloading from the arriving
conveyance at the named place
+ be aware of the difficulties such as complex and bureaucratic
import clearance procedures
Thank you for your presence
and attention!