Incoterms 2010
COMPARATIVE SUMMARY TABLE PREPARED BY ICC ITALY
Notes
Brief definitions of the new INCOTERMS 2010
EXW
EX WORKS
EXW (Ex Works) involves the minimum level of obligations for the seller. The seller fulfills delivery by making the goods available to the buyer at the seller’s premises or another agreed place (factory, warehouse, etc.). The seller is not obligated to load the goods onto the collecting vehicle, nor to clear them for export if such clearance is required.
FCA
FREE CARRIER
The seller delivers by handing over the goods to the carrier or another person nominated by the buyer at the seller’s premises or another agreed place. The parties are advised to specify as clearly as possible the exact point at the agreed place of delivery, as the risk transfers to the buyer at that point.
CPT
CARRIAGE PAID TO (CPT)
The seller delivers by handing over the goods to the carrier or another person nominated by the seller at an agreed place (if such a place has been agreed upon by the parties). The seller must contract for the carriage and bear the costs necessary to transport the goods to the agreed destination.
The seller fulfills their delivery obligation when the goods are handed over to the carrier, not when the goods arrive at the destination.
Unloading costs are borne by the buyer. However, they are the seller’s responsibility if included in the transport contract arranged and paid for by the seller.
CIP
CARRIAGE AND INSURANCE PAID TO
The seller delivers by handing over the goods to the carrier or another person nominated by the seller at an agreed place (if such place has been agreed upon by the parties). The seller must contract for the carriage and bear the costs necessary to transport the goods to the agreed destination, as well as obtain minimum insurance coverage.
Seller and buyer may, of course, agree on broader coverage than the minimum required and may also arrange insurance separately for the portions of risk each party is responsible for.
Unloading costs are borne by the buyer.
The seller fulfills their delivery obligation when the goods are handed over to the carrier, not when the goods arrive at the destination.
DAT
DELIVERED AT TERMINAL
The seller delivers by placing the goods, once unloaded from the arriving means of transport, at the buyer’s disposal at the agreed terminal in the port or agreed destination place.
“Terminal” includes any location, covered or open, such as a quay, warehouse, container yard, road, rail, or airport terminal.
The seller bears all risks related to the transport and unloading of the goods at the terminal in the agreed port or destination place.
DAP
DELIVERED AT PLACE
The seller delivers by placing the goods at the buyer’s disposal on the arriving means of transport, ready for unloading at the agreed destination. The seller bears all risks related to transporting the goods to the agreed place. Import customs clearance is the buyer’s responsibility. Unloading costs are borne by the buyer, unless they are included in the transport contract arranged and paid for by the seller.
DDP
DELIVERED DUTY PAID
DDP (Delivered Duty Paid) involves the highest level of obligations for the seller. The seller delivers by placing the goods at the buyer’s disposal, cleared for import, on the arriving means of transport, ready for unloading at the agreed destination. The seller bears all costs and risks related to transporting the goods to the destination and is responsible for customs clearance both for export and import, paying any applicable duties and fulfilling all customs formalities.
Unloading costs are borne by the buyer, unless included in the transport contract arranged and paid for by the seller.
FAS
FREE ALONGSIDE SHIP (FAS)
The seller delivers the goods by placing them alongside the vessel (e.g., on a quay or barge) nominated by the buyer at the agreed port of shipment. The risk of loss or damage to the goods passes to the buyer once the goods are placed alongside the ship, and the buyer bears all costs from that point onward.
FOB
FREE ON BOARD
The seller delivers by placing the goods on board the ship nominated by the buyer at the agreed port of shipment or by procuring the goods already so delivered. The risk of loss or damage passes when the goods are on board the ship, and the buyer bears all costs from that moment onward.
CFR
COST AND FREIGHT
The seller delivers by placing the goods on board the ship or by procuring the goods already so delivered. The risk of loss or damage passes when the goods are on board the ship. The seller must contract for the carriage and bear the costs necessary to send the goods to the agreed port of destination.
When using CPT, CIP, CFR, or CIF, the seller fulfills their delivery obligation when the goods are handed over to the carrier as specified by the chosen rule, not when the goods arrive at the destination.
Unloading costs are borne by the buyer, unless included in the transport contract arranged and paid for by the seller.
CIF
COST, INSURANCE AND FREIGHT
The seller delivers by placing the goods on board the ship or by procuring the goods already so delivered. The risk of loss or damage passes when the goods are on board the ship. The seller must contract for the carriage and bear the costs necessary to send the goods to the agreed port of destination. The seller also provides insurance coverage against the buyer’s risk of loss or damage to the goods during transport.
Seller and buyer may, of course, agree on broader coverage than the minimum required and may also arrange insurance separately for the portions of risk each party is responsible for, regardless of the Rule used.
