WHAT ARE INCOTERMS?
INCOTERMS are a set of standard three-letter trade terms most commonly used in international contracts for the sale of goods. It is essential that you know your terms of trade before shipping.
EXW (Ex Works)
EXW Incoterms® 2010 – This term can be used for domestic or international trade.
FCA (FREE CARRIER)
Free Carrier FCA Incoterms® 2010 – This term can be used regardless of the mode(s) of transport used.
CPT (CARRIAGE PAID TO)
Carriage Paid To CPT Incoterms® 2010 – This term can be used regardless of the mode(s) of transport used.
CIP (CARRIAGE AND INSURANCE PAID UP TO)
Carriage and Insurance Paid Up To CIP Incoterms® 2010 -This term may be used regardless of the mode(s) of transportation used.
DAT (DELIVERED AT TERMINAL)
Delivered At Terminal DAT Incoterms® 2010 – This term may be used regardless of the mode(s) of transport used.
DAP (DELIVERED IN PLACE)
Delivered In Place DAT Incoterms® 2010 – This term can be used regardless of the mode(s) of transport used.
DDP (DELIVERED DUTY PAID)
Delivered Duty Paid DDP Incoterms® 2010 – This term can be used regardless of the mode(s) of transport used.
FAS (FREE ALONGSIDE SHIP)
Free alongside ship FAS Incoterms® 2010 -Seller delivers the goods when placed alongside the named vessel.
FOB (FREE ON BOARD)
Free On Board FOB Incoterms® 2010 – There have been changes in the meaning, but it means that you put free on the origin ship at origin port.
CFR (COST AND FREIGHT)
Cost and Freight CFR Incoterms® 2010 – This standard is intended for use only when transportation is by sea or inland waterway.
CIF (COST, INSURANCE AND FREIGHT)
Cost, Insurance and Freight CIF Incoterms® 2010 – Same as CFR but in addition to freight to port of destination, insurance is included in that freight.