Incoterms 2010

Incoterms are a set of international norms that interpret commercial terms relative to international contracts for the sale of goods, limiting the rights and obligations of the parties concerned with regards to goods delivery. They are published by the International Chamber of Commerce, and the latest revisions appeared on 1 January 2010.

Incoterms are not laws: they are norms and practices, and so a new version does not revoke the previous ones. However, when the name of the Incoterm is specified, the version being referred to must be stated – for example: EX-WORKS (2010 version).

What they regulate

Goods delivery. Delivery and possession are not to be confused. The moment the risks involved with the goods is transmitted from seller to buyer. The distribution of costs inherent in import-export. Customs papers procedures.

Brief description and structure

Incoterms are classified according to means of transport:

Any mode or modes of transport (also when partially by sea)

 INCOTERMDescription
EXWEx Works(S) places goods at (B’s) disposal at seller’s establishment without loading them onto any means of transport.
FCAFree carrier-named place(S) delivers the goods to the carrier at the designated place and loaded on the means of transport.
CPTCarriage paid to(S) delivers goods to (B) when it places them at the carrier’s disposal on the transport means.… Besides, (S) must pay the freight cost.
CIPCarriage and insurance paid to(S) delivers goods to (B) when it places them at the carrier’s disposal on the transport means. Besides, (S) must pay the freight cost as well as minimum cover transport insurance premium. Greater cover will be negotiated if (S) so desires.
DATDelivered at Terminal(S) delivers the goods and places them at the disposal of (B), once the goods have been discharged at the designated terminal..
DAPDelivered at Place(S) delivers the goods and places them at the disposal of (B) in the means of transport ready for discharge at the named place of destination.
DDPDelivered duty paid(S) delivers the goods and places them at the disposal of(B) at the designated destination without discharge and having duly dealt with all the costs of import formalities.
(S):Seller (B): Buyer

Maritime Transport and inland navigable waterways.

 INCOTERMDescription
FASFree alongside ship(S) delivers the goods to (B) or its carrier on the dock alongside the vessel.
FOBFree on board(S) delivers the goods on board the vessel.
CFRCost and freight(S) delivers the goods on board the vessel. In addition it must pay the freight costs.
CIFCost, insurance and freight(S) delivers the goods on board the vessel. In addition, it must pay the freight cost and a minimum-cover insurance premium. Greater cover will be negotiated if (B) so desires.
(S):Seller (B): Buyer
See Incoterms 2010 table