Incoterms 2010

Group 1: Rules for any modes of transport

1. EXW – Ex Works

“EX Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must provide the buyer, at the buyer’s request, risk, and expense, assistance in obtaining any export license, or other official authorization necessary for the export of the goods.
• The seller has no obligation to the buyer to make a contract of carriage.
• The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk, and expense (if any), with information that the buyer needs for obtaining insurance.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• Where applicable, it is up to the buyer to obtain, at its own risk and expense, any export and import license or other official authorization and carry out all customs formalities for the export of the goods.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer has no obligation to the seller to make a contract of insurance.
• The buyer must pay, where applicable, all duties, taxes, and other charges, as well as the costs of carrying out customs formalities payable upon export.

2. FCA – Free Carrier

“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery as the risk passes to the buyer at that point.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must obtain, at its own risk and expense, any export license or other official authorization and carry out all customs formalities necessary for the export of the goods.
• The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk, and expense (if any), with information that the buyer needs for obtaining insurance.
• The seller must deliver the goods to the carrier or another person nominated by the buyer at the agreed point, if any, at the named place on the agreed date or within the agreed period.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• Where applicable, it is up to the buyer to obtain, at its own risk and expense, any import license or other official authorization and carry out all customs formalities for the import of the goods and for their transport through any country.
• The buyer has no obligation to the seller to make a contract of insurance.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

3. CPT – Carriage Paid To

“Carriage Paid To” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must obtain, at its own risk and expense, any export license or other official authorization and carry out all customs formalities necessary for the export of the goods, and for their transport through any country prior to delivery.
• The seller must give the buyer any notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with the necessary information for obtaining insurance.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

4. CIP – Carriage and Insurance Paid To

“Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to named place of destination.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• The seller must give the buyer any notice needed to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer must pay unloading costs unless such costs were for the seller’s account under the contract of carriage.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

5. DAT – Delivery at Terminal

“Delivered At Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail, or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must obtain, at its own risk and expense, any export license and other official authorization and carry out all customs formalities necessary for the export of the goods and for their transport through any country prior to delivery.
• The seller must give the buyer any notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take delivery of the goods.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer must pay where applicable, the costs of customs formalities as well as all duties, taxes and other charges payable upon import of the goods.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

6. DAP – Delivered At Place

“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination on the agreed date or within the agreed period.
• The seller must pay any charges for unloading at the place of destination that was for the seller’s account under the contract of carriage.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer must, whenever it is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice thereof.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

7. DDP – Delivered Duty Paid

“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination on the agreed date or within the agreed period.
• The seller must pay any charges for unloading at the place of destination that was for the seller’s account under the contract of carriage.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with the necessary information for obtaining insurance.
• The buyer has no obligation to the seller to pay the costs of any mandatory pre-shipment inspection mandated by the authority of the country of export or of import.

Group 2: Rules for Sea and Inland Waterway Transport

8. FAS – Free Alongside Ship

“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with what may be required by the contract.
• The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk, and expense (if any), with information that the buyer needs for obtaining insurance.
• The seller must pay where applicable, the costs of customs formalities necessary for export as well as all duties, taxes, and other charges payable upon export.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of insurance.
• The buyer must give the seller sufficient notice of the vessel name, loading point, and, where necessary, the selected delivery time within the agreed period.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

9. FOB – Free On Board

“Free on Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• The seller must pay where applicable, the costs of customs formalities necessary for export, as well as all duties, taxes and other charges payable upon export.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of insurance.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

10. CFR – Cost, and Freight

“Cost and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must obtain, at its own risk and expense, any export license or other official authorization and carry out all customs formalities necessary for the export of the goods.
• The seller must give the buyer the notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with the necessary information for obtaining insurance.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

11. CIF – Cost, Insurance & Freight

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

The Seller’s obligations

• The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
• Where applicable, the seller must obtain, at its own risk and expense, any export license or other official authorization and carry out all customs formalities necessary for the export of the goods.
• The seller must give the buyer any notice needed to allow the buyer to take measures that are normally necessary to enable the buyer to take the goods.

The Buyer’s obligations

• The buyer must pay the price of the goods as provided in the contract of sale.
• The buyer has no obligation to the seller to make a contract of carriage.
• The buyer must pay the costs of any mandatory pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.