Terms Incoterms 2010
Each defined term is a three-letter abbreviation, the first letter indicates the point of transition of obligations from the seller to the buyer:
- E – at the place of departure (English departure),
- F – at the terminals of departure of the main carriage, the main transportation is not paid (English main carriage unpaid),
- C – at the terminals of the arrival of the main carriage, the main carriage paid,
- D – the buyer, full delivery (English arrival).
11 terms are defined in Incoterms-2010, 7 of them are applicable to any type of transport of the main transportation.
- EXW (ex works, ex-warehouse, ex works): the goods are taken by the buyer from the seller’s warehouse indicated in the contract, payment of export duties is charged to the buyer.
- FCA: the goods are delivered to the main carrier of the customer to the terminal of departure indicated in the contract, export duties are paid by the seller.
- CPT (English carriage paid to …): the goods are delivered to the main carrier of the customer. The main transportation to the terminal specified in the contract is paid by the seller, the buyer
- bears the costs associated with insurance, the passage of customs in the territory of the buyer and delivery from the terminal of the arrival of the main carrier.
- CIP (Carriage and Insurance paid to …): same as CPT, but the main transportation is insured by the seller.
- DAT (delivered at terminal): the delivery to the import customs terminal specified in the contract is paid, that is, the export payments and the basic transportation, including insurance, are
- paid by the seller; The procedure for completing a set of formalities provided for by customs rules for the importation of goods is carried out by the buyer.
- DAP (delivered at point): the delivery to the destination specified in the contract, import duties and local taxes are paid by the buyer.
- DDP (English: delivered duty paid): the goods are delivered to the customer at the place of destination specified in the contract, exempted from all duties and risks.
Also in Incoterms 2010, 4 terms are defined that apply exclusively to maritime transport and the transport of territorial waters:
- FAS (free alongside ship): the goods are delivered to the buyer’s vessel, the contract specifies the port of loading, transshipment and loading is paid by the buyer.
- FOB (free on board): the goods are shipped to the buyer’s ship, the seller pays the transfer.
- CFR (cost and freight): the goods are delivered to the buyer’s specified port of destination, the main transportation insurance, unloading and transshipment is paid by the buyer.
- CIF (Cost, Insurance and Freight): the same as CFR, but the main transportation is insured by the seller.
The content of Incoterms varies in different revisions, for example, in Incoterms 2010 compared to Incoterms 2000, the term DAP is introduced to replace the excluded DAF (delivered at frontier, delivery to the border), DES (delivered ex ship, delivery on board the ship at the port of destination) and DDU (delivered, duty unpaid, delivery to the specified place without customs clearance), and instead of DEQ (English delivered ex quey, delivery to the port) a more general term DAT is introduced.