Inco-Terms

INCO TERMS

Incoterms 2010 also contain extra guidance for traders, including help with choosing electronic procedures, ways to deal with the new laws on security clearances for shipments and updated methods of dealing with insurance, as well as increased usability for domestic moving of goods. Incoterms is now separated into two groups, those applicable to all modes of transport and those only applicable to sea and inland waterway transport. There are now a total of 11 terms instead of 13, with 2 new additions, DAP and DAT and 4 deletions, DAF, DDU, DEQ and DES.

Incoterms 2010 applicable for all modes of transport:

EXW : ex works
FCA : free carrier
CPT : carriage paid to
CIP : carriage and insurance paid to
DAT : delivered at terminal – NEW!
DAP : delivered at place – NEW!
DDP : delivered duty paid

Incoterms 2010 only applicable for sea and inland waterway transport:

FAS : free alongside ship
FOB : free on board
CFR : cost and freight
CIF : cost, insurance and freight

NOTE: The following information refers to Incoterms 2010[3] For a given term, “Yes” indicates that the seller has the responsibility to provide the service included in the price. “No” indicates it is the buyer’s responsibility. If insurance is not included in the term (for example, CFR) then insurance for transport is the responsibility of the buyer or the seller depending on who owns the cargo at time of transport. In the case of CFR terms, it would be the buyer while in the case of CIF or CIP terms, it would be the seller.