Incoterms

Incoterms ® 2010 Quick Reference Guide

Definition of ‘Incoterms’

Trade terms published by the International Chamber of Commerce (ICC) that are commonly used in both international and domestic trade contracts. Incoterms, short for “International Commercial Terms,” are used to make international trade easier by helping traders in different countries understand one another. Incoterms were first developed in 1936 and are updated from time to time, in order to conform to current trade practices. Because of these updates, contracts should specify which version of Incoterms they are using (e.g., Incoterms 2010).

INCOTERMS® 2010

Rules for any mode or modes of transport

Rules for sea and inland waterway transport

EXW

FCA

CPT

CIP

DAT

DAP

DDP

FAS

FOB

CFR

CIF

Ex Works

Free

Carriage

Carriage &

Delivered at

Delivered

Delivered

Free

Free on

Cost &

Cost,

Insurance

Alongside

Insurance

Carrier

Paid To

Terminal

at Place

Duty Paid

Board

Freight

Paid To

Ship

& Freight

SERVICES

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Who Pays

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Marking & Labeling

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Block and Brace

1

1

1

1

1

1

1

1

1

1

1

Export Clearance (License,

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

EEI/AES)

Freight Forwarder

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Buyer

Buyer

Seller

Seller

Documentation Fees

Inland Freight to Main Carrier

Buyer

2

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Origin Terminal Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Buyer

Seller

Seller

Seller

Vessel Loading Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Buyer

Seller

Seller

Seller

Ocean Freight / Air Freight

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Buyer

Buyer

Seller

Seller

Nominate Export Forwarder

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Buyer

Buyer

Seller

Seller

Marine Insurance

3

3

3

Seller

3

3

3

3

3

3

Seller

Unload Main Carrier Charges

Buyer

Buyer

4

4

Seller

Seller

Seller

Buyer

Buyer

4

4

Destination Terminal Charges

Buyer

Buyer

4

4

4

Seller

Seller

Buyer

Buyer

4

4

Nominate On-Carrier

Buyer

Buyer

5

5

5

5

Seller

Buyer

Buyer

Buyer

Buyer

Security Information

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Requirements

Customs Broker Clearance

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Buyer

Buyer

Buyer

Buyer

Fees

Duty, Customs Fees, Taxes

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Buyer

Buyer

Buyer

Buyer

Delivery to Buyer Destination

Buyer

Buyer

5

5

5

5

Seller

Buyer

Buyer

Buyer

Buyer

Delivering Carrier Unloading

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Notes: 1 – Incoterms® 2010 do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sales contract.
2 – FCA Seller’s Facility – Buyer pays inland freight; other FCA qualifiers. Seller arranges and loads pre-carriage carrier and pays inland freight to the “F” delivery place

3 – Incoterms® 2010 does not obligate the buyer nor must the seller to insure the goods, therefore this issue be addressed elsewhere in the sales contract.
4 – Charges paid by Buyer or Seller depending on contract of carriage.

5 – Charges paid by Seller if through Bill of Lading or door-to-door rate to Buyer’s destination

INCOTERMS® IS A REGISTERED TRADEMARK OF THE INTERNATIONAL CHAMBER OF COMMERCE. THIS DOCUMENT IS NOT INTENDED AS LEGAL ADVICE BUT IS BEING PROVIDED FOR REFERENCE PURPOSES ONLY. USERS SHOULD SEEK SPECIFIC GUIDANCE FROM INCOTERMS® 2010 AVAILABLE THROUGH THE INTERNATIONAL CHAMBER OF COMMERCE AT WWW.ICCBOOKS.COM