Incoterms 2010

INCOTERMS, contraction of International Commercial Terms, is the set of terms used in the field of international transactions of goods worldwide, which unequivocally defines the rights, duties, charges and costs of the various parties involved in a transfer of goods among different countries.

The latest version, updated by the International Chamber of Commerce, is that of 2010 that reduces delivery times from thirteen to eleven, with the suppression of DEQ, DDU, DES and DAF and the creation of two new ones, among which it is to highlight the importance of the DAT (Delivered At Terminal) which takes into account as delivery place the Terminal, a term currently widely used mainly for goods in containers.
The complete list of Incoterms 2010 and their grouping:

INCOTERMS 2010 clip_image002 clip_image004 clip_image006 clip_image008 clip_image010 clip_image012 clip_image006_0000 clip_image013 clip_image015
EXW: EX Works Cost
Risk
FCA: Free Carrier at Cost
Risk
FAS: Free Alongside Ship Cost
Risk
FOB: Free On Board Cost
Risk
CFR: Cost & Freight Cost
Risk
CIF: Cost Insurance & Freight Cost
Risk
CPT: Carriage Paid To Cost
Risk
CIP: Carriage & Insurance Paid Cost
Risk
DAT: Delivered At Terminal Cost
Risk
DAP: Delivered At Place Cost
Risk
DDP: Delivery Duty Paid Cost
Risk
Seller/Exporter
Plant
Export
Formalities
Terminal Port of
Loading
Carrier Port of
Discharge
Terminal Import
Formalities
Buyer/Importer
Plant
Legenda Seller
Buyer
Short description Incoterms 2010
Rules for any mode or modes of transport:

  • EXW “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.
  • FCA “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.
  • CPT “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 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.
  • CIP “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 parties) and that the seller must contract for an pay the costs of carriage necessary to bring the goods to the named place of destination.
    “The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements”.
  • DAT “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 a 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.
  • DAP “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.
  • DDP “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.
Rules for sea and inland waterway transport:

  • FAS “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.
  • FOB “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.
  • CFR “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.
  • CIF Costo “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 also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements”.
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