INCOTERMS 2010

What’s new? The number of Incoterms rules has been reduced from 13 to 11. This has been achieved with two new rules in place for four existing rules – DAT, Delivered at Terminal, and DAP, Delivered at Place – for the Incoterms 2010 rules DAF, DES, DEQ and DDU. See detailed description below:
Rules For Any Mode or Modes of Transport
EXW - Ex Works (named place of delivery) Seller's Primary Duties
  • Delivers goods and commercial invoice at his premises
  • Assists the buyer in getting additional transportation documents such as licenses, authorizations, security clearances and other formalities at buyers request

Buyer's Primary Duties
  • Takes delivery of the goods at sellers premises
  • Makes all arrangements at his own cost and risk to bring the goods to the destination
FCA – Free Carrier (named place of delivery) Seller's Primary Duties
  • Delivers goods and commercial invoice to the carrier nominated by the buyer
  • Where applicable, the seller must obtain at his own risk and costs licenses, authorizations, security clearances and other formalities
  • Provides buyer with proof of delivery

Buyer's Primary Duties
  • Nominates the carrier
  • Contracts for the carriage at his own cost and risk
CPT – Carriage Paid to (named place of destination) Seller's Primary Duties
  • Nominates the carrier
  • Contracts for and pays the costs of carriage to the named place of destination
  • Provides export clearance
  • Obtains licenses, authorizations, security clearances and other formalities

Buyer's Primary Duties
  • Accepts delivery of the goods when they are delivered to the first carrier and when the invoice and other necessary transport documents are tendered to him, and received goods from the carrier at the named place of destination
CIP – Carriage and Insurance Paid to (named place of destination) Seller's Primary Duties
  • Nominates the carrier
  • Contracts for and pays the costs of carriage to the named place of destination
  • Contracts for insurance coverage against the buyer’s risk of loss of or damage to the goods during the carriage. (Seller is only required to obtain minimum coverage insurance)
  • Provides export clearance<
  • Obtains licenses, authorizations, security clearances and other formalities

Buyer's Primary Duties
  • Accepts delivery of the goods when they are delivered to the first carrier and when the invoice, cargo insurance policy or other proof of insurance and other necessary transport documents are tendered to him, and received goods from the carrier at the named place of destination
DAT – Delivered at Terminal (named terminal at port or place of destination) Seller's Primary Duties
  • Delivers the goods at named terminal at port or place of destination
  • Bears all cost and risk involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
  • Provides documents to enable buyer to take delivery at the named port or place of destination

Buyer's Primary Duties
  • Takes delivery of the goods and provides clearance of the goods for import, pays any import duty and carry out import customs formalities
DAP – Delivered at Place (named place of destination) Seller's Primary Duties
  • Delivers the goods at named place of destination
  • Bears all cost and risk involved in bringing the goods to named place of destination, ready for unloading
  • Provides documents to enable buyer to unload and take delivery at the named place of destination

Buyer's Primary Duties
  • Takes delivery of the goods and provides clearance of the goods for import, pays any import duty and carry out import customs formalities
DDP – Delivered Duty Paid (named place of destination) Seller's Primary Duties
  • Delivers the goods at named place of destination
  • Provides and pays for import clearance including all
  • Bears all cost and risk in bringing the goods to the named place of destination
  • Provides documents to enable buyer to take delivery at the named place of destination

Buyer's Primary Duties
  • Takes delivery of the goods at the named place of destination
Rules For Sea and Inland Waterway Transport
FAS – Free Alongside Ship (named port of shipment) Seller's Primary Duties
  • Delivers the goods on quay or a barge nominated by the buyer at the named port of shipment
  • Where applicable, seller must obtain at his own risk and costs licenses, authorizations, security clearances and other formalities
  • Provides export clearance

Buyer's Primary Duties
  • Nominates the carrier
  • Contracts for the carriage and bears all cost and risk for carriage
FOB – Free on Board (named port of shipment) Seller's Primary Duties
  • Delivers the goods on board the vessel nominated by the buyer at the named port of shipment
  • Where applicable, seller must obtain at his own risk and costs licenses, authorizations, security clearances and other formalities
  • Provides export clearance
  • Pay loading costs according to the custom of the port to the extent that they are not included in the freight
  • Provides a clean on board receipt

Buyer's Primary Duties
  • Nominates the carrier
  • Contracts for the carriage and bears all cost and risk for carriage
  • Pays loading cost to the extent that they are included in the freight
  • Pays unloading cost
CFR – Cost and Freight (named port of destination) Seller's Primary Duties
  • Nominates the carrier
  • Contracts for and pays the costs of carriage to the named port of destination
  • Provides export clearance
  • Obtains licenses, authorizations, security clearances and other formalities
  • Pays loading costs and handling
  • Pays unloading costs to the extent that they are not included in the freight

Buyer's Primary Duties
  • Accepts delivery of the goods upon shipment when the invoice and other necessary transport documents are tendered to him, and received goods from the carrier at the named place of destination
  • Pays unloading costs to the extent that they are included in the freight
CIF – Cost Insurance and Freight (named port of destination) Seller's Primary Duties
  • Nominates the carrier
  • Contracts for and pays the costs of carriage to the named port of destination
  • Provides export clearance
  • Obtains licenses, authorizations, security clearances and other formalities
  • Pays loading costs and handling
  • Pays unloading costs to the extent that they are not included in the freight

Buyer's Primary Duties
  • Accepts delivery of the goods upon shipment when the invoice, cargo insurance policy or other proof of insurance and other necessary transport documents are tendered to him, and received goods from the carrier at the named port of destination
  • Pays unloading costs to the extent that they are included in the freight