DELIVERY TERMS INCOTERM 2010
INCOTERM regulates the rights and obligations between the Seller and the Buyer in the delivery of goods.
They were developed by the International Chamber of Commerce (ICC) and first published in 1936. INCOTERMS are amended every 10 years.
- Where, how and when the Seller should fulfil their delivery obligation
- Where, how and when the risk of loss or damage of goods transfers from the Seller to the Buyer
- Where, how and when goods-related costs are transferred from the Seller to the Buyer i.e. the costs of the Seller that are included in the contract price
- What the obligations of the parties and the breakdown of costs between them are during customs formalities and the obtaining of import and export licences
- Who enters into a transport contract and insurance contract of goods and who bears the costs thereof
- Who, when and what kind of notifications are given to the other party
- Who bears inspection and supervision costs
- How the goods should be packaged and marked
- What the obligations of the parties are for mutual assistance and who bears the respective costs
INCOTERMS does not regulate
- Transfer of ownership
- Currency and financial terms and conditions, procedure for calculations
- Sanctions and the liability of the parties regarding failure to fulfil their obligations
- The procedure for making claims
- Settling disputes and jurisdiction
- Implementing legislation, etc.
| Group | Term | Explanation | Transfer of ownership | Type of transport |
|---|---|---|---|---|
| Group E Departure term | EXW | Ex Works (...named place) | The Buyer assumes the risk starting from entry to the Seller’s premises | All types of transport |
| Group F Main transport not paid by the Seller | FCA | Free Carrier (...named place) | The Buyer assumes the risk starting from the moment of delivering the goods to the carrier chosen by the Buyer | All types of transport |
| FAS | Free Alongside Ship (...named loading port) | The Buyer assumes the risk starting from the moment of delivering the goods to the carrier chosen by the Buyer | Sea or inland waterway transport only | |
| FOB | Free On Board (...named loading port) | The Buyer assumes the risk starting from the moment of delivering the goods to the carrier chosen by the Buyer | Sea or inland waterway transport only | |
| Group C Main transport paid by the Seller | CFR | Cost and Freight (...named port of destination) | The Buyer assumes the risk as of the delivery/loading of the goods to the carrier chosen by the Seller | Sea or inland waterway transport only |
| CIF | Cost, Insurance and Freight (...named port of destination) | The Buyer assumes the risk as of the delivery/loading of the goods to the carrier chosen by the Seller | Sea or inland waterway transport only | |
| CPT | Carriage Paid To (...named place of destination) | The Buyer assumes the risk as of the delivery/loading of the goods to the carrier chosen by the Seller | All types of transport | |
| CIP | Carriage and Insurance Paid To (...named place of destination) | The Buyer assumes the risk as of the delivery/loading of the goods to the carrier chosen by the Seller | All types of transport | |
| Group D Delivery terms | DAT | Delivered at Terminal (...named place) | The Seller assumes the risk until the delivery of the goods in the named place chosen by the Buyer by the carrier chosen by the Seller | All types of transport |
| DAP | Delivered at Place (...named place of destination) | The Seller assumes the risk until the delivery of the goods in the named place chosen by the Buyer by the carrier chosen by the Seller | All types of transport | |
| DDP | Delivered Duty Paid (...named place of destination) | The Seller assumes the risk until the delivery of the goods in the named place chosen by the Buyer by the carrier chosen by the Seller | All types of transport |
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