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 2000
are internationally accepted commercial terms defining the respective
roles of the buyer and seller in the arrangement of transportation and other
responsibilities and clarify when the ownership of the merchandise takes place.
They are used in conjunction with a sales agreement or other method of
transacting the sale. 
EXW - Ex Works --
Title and risk pass to buyer including payment of all transportation and
insurance cost from the seller's door. Used for any mode of transportation.
- FCA - Free Carrier -- Title and risk pass to buyer including
transportation and insurance cost when the seller delivers goods cleared for
export to the carrier.Seller is obligated to load the goods on the Buyer's
collecting vehicle; it is the Buyer's obligation to recieve the Seller's
arriving vehicle unloaded.
- FAS - Free Alongside Ship --Title and risk pass to buyer including payment
of all transportation and insurance cost once delivered alongside ship by
the seller. Used for sea or inland waterway transportation. The export
clearance obligation rests with the seller.
- FOB - Free On Board and risk pass to buyer including payment of all
transportation and insurance cost once delivered on board the ship by the
seller. Used for sea or inland waterway transportation.
- CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer
when delivered on board the ship by seller who pays the transportation cost
to the destination port. Used for sea or inland waterway transportation.
- CIF - Cost, Insurance and Freight -- Title and risk pass to buyer when
delivered on board the ship by seller who pays transportation and insurance
cost to destination port. Used for sea or inland waterway transportation.
- CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer
when delivered to carrier by seller who pays transportation cost to
destination. Used for any mode of transportation.
- CIP - Carriage and Insurance Paid To --Title and risk pass to buyer when
delivered to carrier by seller who pays transportation and insurance cost to
destination. Used for any mode of transportation.
- DAF - Delivered at Frontier -- Title, risk and responsibility for import
clearance pass to buyer when delivered to named border point by seller. Used
for any mode of transportation.
- DES - Delivered Ex Ship -- Title, risk, responsibility for vessel
discharge and import clearance pass to buyer when seller delivers goods on
board the ship to destination port. Used for sea or inland waterway
transportation.
- DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to buyer when
delivered on board the ship at the destination point by the seller who
delivers goods on dock at destination point cleared for import. Used for sea
or inland waterway transportation. DDU - Delivered Duty Unpaid -- Title,
risk and responsibility of import clearance pass to buyer when seller
delivers goods to named destination point. Used for any mode of
transportation. Buyer is obligated for import clearance.
- DDU - Delivered Duty Unpaid -- Seller fulfills his obligation when goods
have been made available at teh named place in the country of importation
- DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller
delivers goods to named destination point cleared for import. Used for any
mode of transportation.
Note: EXW,
CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation.
FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.
Incoterms 2000 is
copyrighted by the International Chamber of Commerce, Paris, France. It is
available in the United States from ICC Publishing, Inc., 156 Fifth Avenue,
New York, NY 10010.
Order Incoterms
2000 and related publications
ICC produces a range of
publications, including the following Incoterms titles:
Incoterms 2000 (ICC
publication No. 560)
The full text of the 13 Incoterms 2000 - the standard trade terms for traders in
the 21st century.
ICC Guide to Incoterms
2000 (ICC publication No. 620)
By Professor Jan Ramberg - how to implement and use Incoterms to their full.
Packed with illustrations, visuals and comments.
Incoterms 2000
Multimedia Expert
Interactive CD-ROM that brings the Incoterms to life. Easy reference and
comparison, self tests and full-colour visual aids. Available in two versions
(single users and LAN version).
Click here to see a
demonstration
Incoterms 2000 Wall
Chart
A clear, full-colour poster showing the responsibilities under each of the
Incoterms.
Incoterms 2000: a Forum
of Experts (ICC publication No. 617)
Four experts analyse how Incoterms work in practice, and some common
misinterpretations.
ICC publications can be
obtained:
- on the internet through the ICC Business Bookstore at: http://www.iccbooks.com/
- from ICC national committees, whose details are available on
the ICC website
- from agreed distributors.
Preambles
to Incoterms 2000
Incoterms 2000 provides
Preambles explaining the function of each Incoterm. These are reproduced in full
for visitors to this site. For example, the Preamble to FAS FREE ALONGSIDE SHIP
states that under FAS the seller delivers when the goods are placed alongside
the vessel at the named port of shipment. "The buyer has to bear all costs
and risks of loss of or damage to the goods from that moment."
Click on any of the 13
terms listed below and read a concise definition from the Preambles to Incoterms
2000. Several of the Preambles, marked below with an *, include a footnote
referring to the Introduction. Click anywhere on those pages to view the
relevant part of the Introduction. Please note that the terms will appear on
your screen in read-only format and so cannot be copied or printed.
EXW
EX WORKS (…named place)*
FCA FREE CARRIER
(…named place)
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)*
CPT CARRIAGE
PAID TO (…named place of destination)
CIP CARRIAGE AND
INSURANCE PAID TO (…named place of destination)*
DAF DELIVERED AT
FRONTIER (…named place)*
DES DELIVERED EX
SHIP (…named port of destination)
DEQ DELIVERED EX
QUAY (…named port of destination)*
DDU DELIVERED
DUTY UNPAID (…named place of destination)*
DDP DELIVERED
DUTY PAID (…named place of destination)*
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ICC recommends that
"Incoterms 2000" be referred to specifically whenever the terms are
used, together with a location. For example, the term "Delivered at
Frontier" (DAF) should always be accompanied by a reference to an exact
place and the frontier to which delivery is to be made.
Here are three examples of
correct use of Incoterms:
FCA Kuala Lumpur Incoterms 2000
FOB Liverpool Incoterms 2000
DDU Frankfurt Schmidt GmbH Warehouse 4 Incoterms 2000
Incoterms 2000 is
copyrighted by the International Chamber of Commerce, Paris, France. It is
available in the United States from ICC Publishing, Inc., 156 Fifth Avenue,
New York, NY 10010.
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