ICC Official Rules for the interpretation of Trade Terms

Incoterms 2000

The Terms

The “E” Term is the term in which seller’s obligation is at its minimum

The “F” Term require the seller to deliver as instructed by the buyer

The “C” Term require the seller to contract for carriage at his expense

The “D” Term signifies arrival contracts

E-termsDeparture

F-termsMain Carriage Unpaid

C-termsMain Carriage Paid

D-termsArrival

EXW

FCA

FAS FOB

CPT

CFR CIF

CIP

DAF

DDP DDU

DES DEQ

«Ex works» the seller delivers the goods when he places at the disposal of the buyer at the seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

This term represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller's premises.

Seller:   

Risk   

Costs        Buyer:  

Risk

Costs Delivery:

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

Free Carrier» (...named place) (FCA) means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. This term may be used irrespective of the mode of transport, including multimodal transport.

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

FREE ALONGSIDE SHIP (...named port of shipment) (FAS) «Free Alongside Ship» means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that moment. This term requires the seller to clear the goods for export.

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

It is a reversal from previous Incoterms versions, which required the buyer to arrange for export clearance. This term can only be used for sea or inland waterway transport.

“Cost and Freight” (...named port of destination) (CFR) means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination without assuming the risk of loss or damage to the goods or any additional costs after the time the goods have been delivered on board the vessel. The CFR term requires the seller to clear the goods for export. This can only be used for sea and inland waterway transport.

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

“Cost, Insurance and Freight” (...named port of destination) (CIF) means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The CIF term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport.

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

«Carriage paid to...» (named point of destination) (CPT) means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.

Seller

Buyer

Risk

Risk

Costs

Costs

Delivery

“Carriage and insurance paid to” (named point of destination) (CIP) means that the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the risk of loss of or damage to the goods during the carriage. The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.

“Delivered at frontier” (…named point) (DAF) means that the seller fulfils his obligation to deliver when the goods have been made available cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The risk is transferred when the seller places the goods at the disposal of the buyer at the named place of delivery at the frontier (duty unpaid). The term “frontier” may be used for any frontier including that of the country of export. It is primarily intended to be used when goods are to be carried by rail or road.

«Delivered Ex Ship» means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. The seller places the goods effectively at the disposal of the buyer on board the vessel at the named port of unloading.This term can be used only when goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination.

«Delivered Ex Quay» (…named port of destination) (DEQ) means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.

This is a reversal from previous Incoterms versions, which required the seller to arrange for import clearance.

"Delivered duty unpaid" (…named point) (DDU) means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. Import duties have to be borne by the buyer as well as any costs and risks caused. This term may be used irrespective of the mode of transport.

«Delivered duty paid» (…named point) (DDP) means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including, where applicable, any «duty» (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.