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| Incoterms
make international trade easier and help traders in different
countries to understand one another. |
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| These
standard trade definitions that are most commonly used in
international contracts are protected by ICC copyright.
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assist traders to understand the areas that the 13 Incoterms
cover and how each one works, the official ICC website now
publishes the Preambles to each term in read-only format,
together with basic information and background.
Incoterms is developed, maintained and promoted by the International
Chamber of Commerce (ICC) Commission on Commercial Law and
Practice (CLP). |
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EXW
/ FCA / FAS / FOB
/ CFR / CIF / CPT
/ CIP / DAF / DES
/ DEQ / DDU / DDP
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EXW
(Ex Works)
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(factory,
mill, warehouse: your door) Title and risk pass to buyer including
payment of all transportation and insurance cost from the
seller's door. Used for any mode of transportation. |
| Download
EXW Preambles |
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to top |
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| FCA
(Free Carrier) |
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(pick
a place after your origin to start) Title and risk pass to
buyer including transportation and insurance cost when the
seller delivers goods cleared for export to the carrier. Seller
is obligated to load the goods on the Buyer's collecting vehicle;
it is the Buyer's obligation to receive the Seller's arriving
vehicle unloaded. |
| Download
FCA Preambles |
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to top |
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| FAS
(Free Alongside Ship) |
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(port,
after all origin port charges) Title and risk pass to buyer
including payment of all transportation and insurance cost
once delivered alongside ship by the seller. Used for sea
or inland waterway transportation. The export clearance obligation
rests with the seller. |
| Download
FAS Preambles |
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to top |
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| FOB
(Free On Board) |
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(port-same
as FAS) Risk pass to buyer including payment of all transportation
and insurance cost once delivered on board the ship by the
seller. Used for sea or inland waterway transportation. |
| Download
FOB Preambles |
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to top |
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| CFR
(Cost and Freight) |
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(destination
port-paid to arrival at destination port) Title, risk and
insurance cost pass to buyer when delivered on board the ship
by seller who pays the transportation cost to the destination
port. Used for sea or inland waterway transportation. |
| Download
CFR Preambles |
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to top |
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| CIF
(Cost, Insurance and Freight) |
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destination
port-same as CFR, but includes insurance) Title and risk pass
to buyer when delivered on board the ship by seller who pays
transportation and insurance cost to destination port. Used
for sea or inland waterway transportation. |
| Download
CIF Preambles |
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to top |
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CPT (Carriage Paid To) |
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(place
at destination-includes all destination port charges) Title,
risk and insurance cost pass to buyer when delivered to carrier
or seller who pays transportation and insurance cost to destination.
Used for any mode of transportation. |
| Download
CPT Preambles |
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to top |
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| CIP
(Carriage and Insurance Paid To) |
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(place
at destination-same as CPT, but includes insurance) Title
and risk pass to buyer when delivered to carrier by seller
who pays transportation and insurance cost to destination.
Used for any mode of transportation. |
| Download
CIP Preambles |
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to top |
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| DAF
(Delivered to Frontier) |
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(border
of country-same as paid by seller to border-all other charges
to buyer) Title, risk and responsibility for import clearance
pass to buyer when delivered to named border point by seller.
Used for any mode of transportation. (border of country-same
as paid by seller to border-all other charges to buyer) Title,
risk and responsibility for import clearance pass to buyer
when delivered to named border point by seller. Used for any
mode of transportation. |
| Download
DAF Preambles |
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to top |
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| DES
(Delivered Ex Ship) |
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(on
board ship to destination port) Title, risk, responsibility
for vessel discharge and import clearance pass to buyer when
seller delivers goods on board the ship to destination port.
Used for sea or inland waterway transportation. |
| Download
DES Preambles |
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to top |
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| DEQ
(Delivered Ex Quay i.e. Duty Paid) |
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(destination
port-includes duties and taxes, but not destination charges
or delivery) Title and risk pass to buyer when delivered on
board the ship at the destination point by the seller who
delivers goods on dock at destination point cleared for import.
Used for sea or inland waterway transportation. |
| Download
DEQ Preambles |
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to top |
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| DDU
(Delivered Duty Unpaid) |
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(consignee
door-excluding duties and taxes) Title, risk, and responsibility
for vessel discharge and import clearance pass to buyer when
seller delivers goods on board the ship to destination port.
Used for sea or inland waterway transportation. |
| Download
DDU Preambles |
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to top |
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| DDP
(Delivered Duty Paid) |
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(consignee door-includes all charges origin to destination)
Title and risk pass to buyer when seller delivers goods to
named destination point cleared for import. Used for any mode
of transportation. |
| Download
DDP Preambles |
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to top |
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Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used
for any mode of transportation. FAS, FOB, CFR, CIF, DES, and
DEQ are used for sea and inland waterway. |
