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The Incoterms rules are a standard set of trade terms used worldwide in international and domestic contracts of sale. The first version was published in 1936. The rules have been developed and maintained by experts and practitioners brought together by ICC. The Incoterms rules are recognized by UNCITRAL as the global standard for the interpretation of the most common trade terms.
Summary of Incoterms® 2010:
| Incoterms for any Mode or Modes of Transport: | |
|---|---|
| EXW | Ex works... |
| FCA | Free Carrier... |
| CPT | Carriage Paid To... |
| CIP | Carriage and Insurance Paid... |
| DAT | Delivered At Terminal... (NEW) |
| DAP | Delivered At Place... (NEW) |
| DDP | Delivered Due... |
| Incoterms for Sea and Inland Water Transport only: | |
|---|---|
| FAS | Free Alongside Ship... |
| FOB | Free On Board... |
| CFR | Cost and Freight... |
| CIF | Cost, Insurance and Freight... |
| DAT | Delivered At Terminal... (NEW) |
| DAP | Delivered At Place... (NEW) |
| DDP | Delivered Due... |
As was the case with previous versions of Incoterms they reflect the agreement between buyer and seller only and involve no other parties.
The rules reflect and regulate physical consignment of goods when it comes to:
- Passing of risk from seller to buyer
- Who is responsible for taking care of insurance
- Who is to take care of the transport / contract of carriage / freight charges
In order to use the Incoterms® 2010, they must be incorporated into the contract of sales. The reference must be to the specific version of Incoterms. For example:
FCA Strandgade 3, Copenhagen, Denmark Incoterms® 2010
