Use:

Applicable for any mode of transport

Always specify the designated site:  “EXW (Named place) Incoterms 2010”

Ex Works: “Named place”

This means that the seller delivers the goods, or makes them available to the buyer at his premises or in an agreed upon place, without loading the goods.

FCA

Use:

Applicable for any mode of transport

Always specify the designated site:  “FCA (Named places) Incoterms 2010”

Definition:

Free Carrier: “Main carriage unpaid”

This means that the seller hands over the goods, already cleared for export if required, to the custody of the first carrier (named by the buyer) in a designated place.

FOB

 Use:

Applicable for maritime transport

Always specify the designated loading port:  “FOB (named loading port) Incoterms 2010”

Definition: 

 Free on Board

This means that the seller delivers the goods on board the ship designated by the buyer at the loading port; the seller must clear the goods for export if required.

CFR

Use:

Applicable for maritime transport

Always specify the port of destination: “CFR (named destination port) Incoterms 2010”

Definition:

Cost and Freight

This means that the seller delivers the merchandise on board the ship at the port of destination and must hire and pay for the freight and fleet.

CPT

Use:

Applicable for any mode of transport

Always specifiy the agreed upon site: “CPT (named place of destination) Incoterms 2010”

Definition:

Carriage Paid To

This means that the seller delivers the goods to the named place, assuming the hiring and transport costs up until the agreed upon place.

The Incoterms CFR, CPT, CIP (same obligations as CPT but including the insurance costs paid for by the seller) and CIF (same obligations as CFR, but including the insurance costs paid for by the seller) have specific provisions which state that the transfer of risks and costs happens at different places.

A common misconception is that with a CFR, CPT, CIP or CIF sale, the buyer does not assume the risk of international or principal transport, but this is not the case. The transfer of risk is carried out at the loading port.

DAP

Use:

Applicable for any type of transport

Always specify the designated site.“DAP (named place of destination) Incoterms 2010”

Definition:

Delivered at Place

This means that the seller hands over the unloaded goods from the main transport and makes it available to the buyer at his premises or in the agreed upon site, assuming the costs and risks up until the agreed upon point, without clearing for import customs.

DDP

Use:

Applicable for any mode of transport

Always specify the designated site.“DDP (named place of destination) Incoterms 2010”

Definition:

Delivery Duty Paid:

This means that the seller delivers the goods to the premises of the buyer, or another designated site, assuming the costs and risks up until the agreed upon place, including the import customs clearance and the duties deriving from this.