Incoterms 2010

Incoterms 2010

TERM – DEFINITION  
The multi-modal (available for multiple forms of transport, including land, air and waterway transportation) terms are:
EXW (EX Works)
Unchanged in Incoterms ® 2010 rules
Ex works (EXW) named place (seller’s location) –
An Incoterms ® rule under which the price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination. This Incoterms ® rule is regarded as the most open-ended. There is generally nothing specific regarding delivery and there is a mutually convenient pickup time for exporter and importer agreed upon. Used for any mode of transport.
Compare: Delivered Duty Paid
FCA
Unchanged in Incoterms ® 2010 rules
Free Carrier At (FCA) named place (seller’s country) –
An Incoterms ® rule under which seller delivers goods, cleared for export, to the buyer-designated carrier at a named location. Used for any mode of transport. Seller must load goods onto the buyer's carrier. The key document signifying transfer of responsibility is receipt by carrier to exporter.
CPT
Unchanged in Incoterms ® 2010 rules
Carriage Paid To (CPT) named place of destination –
An Incoterms ® rule used for any mode of transportation. Buyer assumes title and risk of loss when goods are delivered to the carrier. Seller pays shipping to destination. CPT delivery takes place when the exporter hands over goods to the carrier. The exporter is given bill of lading or equivalent document (air waybill, sea waybill, multi-modal bill of lading).
Compare: Carriage and Insurance Paid To
CIP
Unchanged in Incoterms ® 2010 rules
Carriage Insurance Paid (CIP) named place of destination –
An Incoterms ® rule under which seller delivers goods to seller-designated carrier, pays cost of carriage to named destination and must obtain insurance to cover buyer’s risk of loss in transit. Buyer bears risk of loss and any additional costs after seller’s delivery to carrier, protected by seller’s insurance. Used for any mode of transportation; same as CPT, but seller pays for insurance and names buyer as beneficiary.
Compare: Carriage Paid To
DDU
Eliminated in Incoterms ® 2010 rules
Delivered Duty Unpaid (DDU) named place of destination –
An Incoterms ® rule under which seller bears the risk and expense of getting the goods to a named destination, but excluding duties, taxes and other official charges payable on import. Some variations on DDU are possible if the seller is to pay some of the import charges. Delivery takes place when the exporter places goods at the disposal of the importer in city of delivery. There is no corresponding transportation document, although a bill of lading is usually used. Used for any mode of transportation. Same as Delivered Ex Quay (DEQ), except that the buyer and seller can specify delivery of the goods to a warehouse or other destination point. Seller must arrange for ground transport in the buyer's country. Buyer bears responsibility for import customs duties.
This term is defined in the Incoterms ® 2000 rules. It has been eliminated in the Incoterms ® 2010 rules , but the Incoterms® 2000 rules can still be used by contracting parties if they so agree.
Compare: Delivered Duty Paid, Delivered Ex Quay, Delivered at Terminal, Delivered at Place
DAT
New in Incoterms ® 2010 rules
Delivered at Terminal (DAT) named place of destination –
An Incoterms ® rule under which seller delivers goods to a named terminal in the destination country. Buyer is responsible for import clearance and any further in-country carriage. This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010.
Compare : Delivered at Place, Delivered Duty Unpaid, Delivered Duty Paid
DAP
New in Incoterms ® 2010 rules
Delivered at Place (DAP) named place of destination –
An Incoterms ® rule under which seller delivers goods to the buyer’s facility or another named location (other than a terminal) in the destination country. Buyer is responsible for import clearance and any further in-country carriage. This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010 rules.
Compare : Delivered at Terminal, Delivered Duty Unpaid, Delivered Duty Paid
DDP
Unchanged in Incoterms ® 2010 rules
Delivered Duty Paid (DDP) named place of destination –
An Incoterms ® rule under which seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination and for clearing customs in the country of import. Seller provides literally door-to-door delivery, including customs clearance in the port of export and the port of destination. Thus, seller bears the entire risk of loss until goods are delivered to the buyer's premises. Full term is "DDP named place of destination." Delivery takes place when exporter places goods at disposal of importer in city of delivery. There is no corresponding transportation document, although bill of lading is usually used. Used for any mode of transportation. Seller bears all risk and customs responsibilities until the goods are delivered to a specified location and clear import customs. Buyer assumes risk and title when the goods are delivered to the buyer's specified location.
Compare: Delivered Duty Unpaid, Ex Works, Free On Board (UCC), Delivered at Terminal, Delivered at Place
The single mode terms (which can only be used with waterway transportation) are:
FAS
Unchanged in Incoterms ® 2010 rules
Free Alongside Ship (FAS) named vessel at loading port –
An Incoterms ® rule used only for maritime trade (transport by vessel) Under this arrangement, the supplier agrees to deliver the goods in proper condition alongside the vessel. The buyer assumes all subsequent risks and expenses after delivery to the pier. This term can only be used for waterway transportation.
Compare : F.A.S – UCC
FOB
Unchanged in Incoterms ® 2010 rules
Free On Board (FOB) named vessel at loading port –
An Incoterms ® rule used only for maritime trade (transport by vessel) under which responsibility for the shipment transfers from exporter to importer when shipment is loaded aboard the vessel. Seller must load the goods onto the ship. Centuries of maritime tradition says that the FOB point is the Ship's Rail, also referred to as "Freight on Board." This is the older maritime term of trade. If the freight falls while loading, however, it is the exporter's responsibility if it lands on quay, but it is the importer's responsibility if it lands on ship. The documentation of delivery is the ocean bill of lading or sea waybill. This term can only be used for waterway transportation .
Compare: Free On Board – UCC
CFR
Unchanged in Incoterms ® 2010 rules
Cost & Freight (CFR) named port of destination
An Incoterms ® rule under which goods are considered to be "delivered" (and buyer assumes risk of loss) when they pass the ship's rail in the port of shipment.  The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port.  This term can only be used for waterway transportation.
Compare: C.&F. – UCC, C.I.F – UCC, CIF – Incoterm, Carriage Paid To
CIF
Unchanged in Incoterms ® 2010 rules
Cost, Insurance & Freight (CIF) named port of destination –
This Incoterms ® rule is similar to Cost & Freight (CFR) where goods are considered to be "delivered" (and buyer assumes risk of loss) when they pass the ship's rail in the port of shipment.  The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port.  Under CIF the seller must also obtain marine insurance against buyer's risk of loss or damage in transit.  This term can only be used for waterway transportation.
Compare: C.&F. – UCC, C.I.F – UCC, Cost and Freight, Carriage Insurance Paid
DES
Eliminated in Incoterms ® 2010 rules
Delivered Ex Ship (DES) named port
An Incoterms ® rule under which seller’s delivery obligation is satisfied when goods are placed at buyer’s disposition on board a vessel at a designated destination port, not cleared for import.
This term is defined in the Incoterms ® 2000 rules. It has been eliminated in Incoterms ® 2010 rules, but Incoterms ® 2000 rules can still be used by contracting parties if they so agree.
Compare: Delivered Ex Quay
DEQ
Eliminated in Incoterms ® 2010 rules
Delivered Ex Quay (DEQ) named port
An Incoterms ® rule used for ship transport. Signifies that the seller is responsible for all risks and costs incurred to have the goods delivered and unloaded at a named port of destination. This includes the obligation to contract and pay for freight and transportation costs by sea or inland waterway, unloading fees, export and import licensing fees, and other taxes (unless specifically excluded in the contract). The buyer is obligated only to assist in obtaining any import license or other official authorization necessary to import the goods.
Compare: Delivered Ex Ship
DAF
Eliminated in Incoterms ® 2010 rules
Delivered at Frontier (DAF)
An Incoterms ® rule under which seller's delivery obligation is satisfied when goods are placed at buyer's disposition on arriving means of transportation, cleared for export but not import, and not unloaded. Delivery takes place when the vehicle is placed at disposal of importer at designated border city. There is no specific documentation for transfer, although some carriers provide some. Used for any mode of transportation. Buyer acquires title, risk and responsibility for import customs clearance.
This term is defined in the Incoterms ® 2000 rules. It has been eliminated in the Incoterms ® 2010 rules, but the Incoterms ® 2000 rules can still be used by contracting parties if they so agree.