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INCOTERMS (International Commercial TERMS) were developed by the International Chamber of Commerce (ICC). They are a uniform set of rules designed for the interpretation of international transactions.

The rules were first published in 1936 and have been revised periodically to account for changing modes of transport and document delivery.

The current version is Incoterms 2000.

Incoterms 2000 groups the terms in four categories, denoted by the first letter in the three- letter abbreviation:

• “E”-terms (EXW): The seller only makes the goods available to the buyer at the seller’s own premises

• “F”-terms (FCA, FAS & FOB): The seller is called upon to deliver the goods to a carrier appointed by the buyer.

• “C”-terms (CFR, CIF, CPT & CIP): The seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events accruing after shipment or dispatch.

• “D”-terms (DAF, DES, DEQ, DDU and DDP): The seller has to bear all costs and risks needed to bring the goods to the place of destination.

 
E-terms (Departure) EXW Ex Works (…named place)
F-terms (MainCarriage Unpaid) FCA Free Carrier (…named place)
FAS Free Alongside Ship
(…named port of shipment)
FOB Free On Board
(…named port of shipment)
C-terms (MainCarriage Paid) CFR Cost and Freight
(…named port of destination)
CIF Cost, Insurance and Freight
(…named port of destination)
CPT  Carriage Paid To
(…named port of destination)
CIP Carriage and Insurance Paid To
(…named port of destination)
D-terms (Arrival) DAF Delivered At Frontier
(a named place)
DES Delivered Ex Ship
(…named port of destination)
DEQ Delivered Ex Quay
(…named port of destination)
DDU Delivered Duty Unpaid
(…named port of destination)
DDP Delivered Duty Paid
(…named port of destination)
For further information regarding Incoterms, please refer to the Incoterms
Website: http://www.iccwbo.org


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