ROE Logistics - Incoterms

Incoterms rules are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade.
Incoterms is short for "International Commercial Terms". The International
Chamber of Commerce (ICC) introduced the first version of Incoterms in 1936. The current version of Incoterms is called Incoterms 2010.

incoterms2010

Rules for any mode or modes of transport:
EXW - EX WORKS
FCA - FREE CARRIER
CPT - CARRIAGE PAID TO
CIP - CARRIAGE AND INSURANCE PAID TO
DAT - DELIVERED AT TERMINAL
DAP - DELIVERED AT PLACE
DDP - DELIVERED DUTY PAID

Rules for sea and inland waterway transport:
FAS - FREE ALONGSIDE SHIP
FOB - FREE ON BOARD
CFR - COST AND FREIGHT
CIF - COST INSURANCE AND FREIGHT

RULES FOR ANY MODE OR MODES OF TRANSPORT

EXW - EX WORKS
The seller delivers when it places the goods at the disposal of the buyer at the seller's premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

FCA - FREE CARRIER
The seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.

CPT - CARRIAGE PAID TO
The general /containerised /multimodal equivalent of CFR.The seller pays for
carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.

CIP - CARRIAGE AND INSURANCE PAID TO
The containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

DAT - DELIVERED AT TERMINAL
The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination.

DAP - DELIVERED AT PLACE
The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.

DDP - DELIVERED DUTY PAID
The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination.

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

FAS - FREE ALONGSIDE SHIP
The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.

FOB - FREE ON BOARD
The classic maritime trade term. The seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only. It also includes Air transport when the seller is not able to export the goods on the schedule time mentioned in the letter of credit. In this case the seller allows a deduction of sum equivalent to the carriage by ship from the air carriage.

CFR - COST AND FREIGHT
Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.

CIF - COST INSURANCE AND FREIGHT
Exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.

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