INCOTERMS® 2010

This is a brief guide to outline some of the most commonly used terms in International Trade. If Incoterms® 2010 are to be incorporated in to the sales contract it should clearly state to be
Incoterms® 2010 and include a designated point of transfer.

Cost Obligations	Cost for Seller	Cost for Buyer
Insurance Risk	Risk for Seller	Risk for Buyer	Shared responsibility

Incoterms® 2010	Loading at sellers premises	Export customs formalities	Pre-carriage	Handling at port of export	Carriage by Road; Rail; Sea; Air	Insurance (main carriage)	Handling at final destination port	Off loading	Import Customs formalities, Duty/Taxes	On-carriage to final delivery point
EXW Ex Works (named place of delivery)
FCA Free Carrier (named place of delivery)			Unless contract states otherwise
CPT Carriage Paid To (named place of destination)							Unless contract states otherwise	Unless contract states otherwise
CIP Carriage & Insurance Paid to (named place of destination)							Unless contract states otherwise	Unless contract states otherwise
DAT Delivered At Terminal (named terminal at port or place of destination)
DAP Delivered At Place (named place of destination)										Unless contract states otherwise
DDP Delivered Duty Paid (named place of destination)
Incoterms® Ocean Only	Loading at sellers premises	Export customs formalities	Pre- carriage	Handling at port of export	Carriage by Road; Rail; Sea; Air	Insurance (main carriage)	Handling at final destination port	Off loading	Import Customs formalities, Duty/Taxes	On-carriage to final delivery point
FAS Free Alongside Ship (named port of shipment)
FOB Free On Board (named port of shipment)
CFR Cost & Freight (named port of destination)							Unless contract states otherwise	Unless contract states otherwise
CIF Cost, Insurance & Freight (named port of destination)							Unless contract states otherwise	Unless contract states otherwise

Note concerning Export Packing:

Packing must be suitable for the method of export and final destination.

Specialise packaging may be required.

Cost of export packing is for the sellers account, unless otherwise detailed in your sales contract.

IMPORTANT:

This is a guide only. It is recommended you refer to the ICC publication of Incoterms® 2010.