What are Incoterms
Incoterms are a set of standard three-letter trade terms most commonly used in international contracts for the sale of goods.
It’s essential that you understand your trading terms before shipping.
EXW (EX Works)
EX Works EXW place of name Incoterms® 2010 — This term can be used for domestic or international trade.
FCA (Free Carrier)
Free Carrier FCA place of delivery Incoterms® 2010 — This term can be used regardless of the mode or modes of transport used.
CPT (Carriage Paid To)
Carriage paid to named place CPT Incoterms® 2010 — This term can be used regardless of the mode or modes of transport used.
CIP (Carriage & Insurance Paid)
Carriage and insurance CIP paid to the named place Incoterms® 2010 — This term can be used regardless of the mode or modes of transport used.
DAT (Delivered at Terminal)
Delivered at Terminal DAT at a place called Incoterms® 2010 — This term can be used regardless of the mode or modes of transport to be used.
DAP (Delivered at Place)
Delivered at DAP place called Incoterms® 2010 place — This term can be used regardless of the mode or modes of transport used.
DDP (Delivered Duty Paid)
Delivered Duty Paid DDP named place of destination Incoterms® 2010 — This term can be used regardless of the mode or modes of transport used.
FAS (Free Alongside Ship)
Free Alongside Ship FAS port of shipment named Incoterms® 2010 — The seller delivers the goods when they are placed alongside the named vessel.
FOB (Free on Board)
Free On Board FOB port of shipment according to Incoterms® 2010 — Added to the price of goods, it indicates that the price does not include freight or other additional costs for bringing the goods to their destination.
CFR (Cost & Freight)
Cost and transport CFR port of destination called Incoterms® 2010 — This rule should only be used when transport takes place by sea or inland waterways.
CIF (Cost Insurance & Freight)
Cost of Insurance and Transport CIF port of destination called Incoterms® 2010 — This term should only be used when transport takes place by sea or inland waterways.