The World Trade Press Illustrated Guide to

INCOTERMS

20101
A comprehensive guide to the 11 INCOTERMS 2010

Professional Industry Report

2 World Trade Press

World Trade Press CONTENTS

Illustrated Guide to Incoterms 2010*
Introduction to Incoterms 2010 . . . . . . . . . . . . . . . . . . . 3
Incoterm Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Incoterm Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Important Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes on Incoterms 2010 . . . . . . . . . . . . . . . . . . . . . . . . 5

800 Lindberg Lane, Suite 190 E TERMS

Petaluma, California 94952 USA Departure Terms
Tel: +1 (707) 778-1124 x 3 EXW
Fax: +1 (707) 778-1329 Ex Works
www.WorldTradePress.com (. . . named place of delivery) . . . . . . . . . . . . . . . . . . . . . 6
sales@WorldTradePress.com
F TERMS
Copyright Notices Main Carriage Unpaid Terms
World Trade Press Illustrated Guide to Incoterms 2010 FCA
Copyright 2000-2010 by World Trade Press. All Rights Free Carrier
Reserved. Reproduction or translation of any part of this (. . . named place of delivery) . . . . . . . . . . . . . . . . . . . . . 8
work without the express written permission of the FAS
copyright holder is unlawful. Requests for permissions Free Alongside Ship
and/or translation or electronic rights should be ad- (. . . named port of shipment) . . . . . . . . . . . . . . . . . . . . 10
dressed to Publisher at the above address. FOB
Free On Board
Additional Copyright and Trademark Notices (. . . named port of shipment) . . . . . . . . . . . . . . . . . . . . 12
Incoterms is a registered trademark of the International
Chamber of Commerce (ICC), Paris, France and is used C TERMS
here for informational purposes only. The text of Inco-
terms 2010 is 2010 by ICC Publishing S.A. The full text
Main Carriage Paid Terms
CFR
of Incoterms 2010 is contained in ICC publication No. Cost and Freight
715, ISBN 978-92-8420080-1. In the USA contact ICC (. . . named port of destination) . . . . . . . . . . . . . . . . . . 14
Publishing, Inc., 1212 Avenue of the Americas, 21st Floor, CIF
New York, New York 10036, Tel: +[1] (212) 703-5066, Cost, Insurance and Freight
www.iccbooksusa.net. ICC HQ are ICC Publishing S.A., (... named port of destination) . . . . . . . . . . . . . . . . . . . 16
38 Cours Albert, 1er, 75008 Paris, France, Tel: +[33] (1) CPT
49 53 28 28, www.iccbooks.com. Carriage Paid To
*This World Trade Press Illustrated Guide to In- (. . . named place of destination) . . . . . . . . . . . . . . . . . . 18
coterms 2010 is independently authored and CIP
published and is not sponsored or endorsed by, or Carriage and Insurance Paid To
affiliated with, the ICC. (. . . named place of destination) . . . . . . . . . . . . . . . . . . 20

D TERMS
Arrival Terms
DAT
Delivered At Terminal
(. . . named terminal at port or place of destination) . . 22
DAP
Delivered At Place
(. . . named place of destination) . . . . . . . . . . . . . . . . . . 24
DDP
Delivered Duty Paid
(. . . named place of destination) . . . . . . . . . . . . . . . . . . 26

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

World Trade Press Illustrated Guide to Incoterms 2010 3

The World Trade Press

Illustrated Guide to Incoterms 20101
While the terms of sale in international business sound sim-
ilar to those used in domestic contracts, they often have dif-
ferent meanings. Confusion over these terms can result in
diminished profits or lost sales.
Incoterms
By the 1920s, international traders had developed a set of
trade terms to describe their rights and obligations with regard
to the sale and transport of goods. These terms consisted of
short abbreviations for lengthy contract provisions. Unfortu-
nately, there was no uniform interpretation of these terms.
To improve this aspect of international trade, the Interna-
tional Chamber of Commerce (ICC) in Paris developed In-
coterms (INternational COmmercial TERMS), a set of
uniform rules for the interpretation of terms defining the
costs, risks, and obligations of buyers and sellers in interna-
tional transactions. First published in 1936, these rules have
been periodically revised to account for changing modes of
transport, document delivery, and security.
Incoterms 2010
In late 2010 the ICC issued its latest revision, Incoterms
2010. Please note:
1. The new rules enter into force on January 1, 2011.
2. Contracts are interpreted by the version of Incoterms
referred to in the contract. Therefore, only a contract
that refers to Incoterms 2010 will be governed by rules
from that version.
Incoterms 2010 vs. Incoterms 2000
Incoterms 2010 rules incorporate a number of changes from
Incoterms 2000. Here are some key items:
1. Incoterms 2000 had 13 rules whereas Incoterms 2010
has 11 rules. For Incoterms 2010, four of the D rules:
DAF, DES, DEQ, and DDU were dropped, and two
new D rules were created: DAT and DAP
2. In Incoterms 2000, a number of rules, such as FOB, es-
tablished that the seller delivers the goods when they
pass the ships rail. In Incoterms 2010 these rules re-
quire that the goods be delivered on board the vessel.
3. Incoterms 2000 established four groups of rules:
E: Departure, F: Main Carriage Unpaid, C: Main Car-
riage Paid, and D: Arrival. Incoterms 2010, however, es-
tablishes two classes: 1) rules applicable for all modes of
transport, and 2) rules applicable only for sea and inland
waterway transport. See the next page for details.
4. Incoterms 2010 gives electronic communications the same
status as paper communication so long as the parties agree.
5. Incoterms 2010 rules obligate both seller and buyer to
give assistance in securing security clearances.
6. Incoterms 2010 now acknowledges the existence of
string sales, where goods in transit may be sold mul-
tiple times before arrival, by giving the seller the option
to procure goods shipped.
Use of Incoterms
Incoterms are not laws enacted by governments. Rather,
they are rules agreed to by parties to a contract.
Also, Incoterms are not implied into contracts for the sale of
goods. If you desire to use Incoterms, you must specifically
include them in your contract. Your contract should expressly
refer to a specific version of Incoterms. For example:
CIF Oakland, California, USA, Incoterms 2010
Incoterms Do . . .
Incoterms 2010 may be included in a sales contract if the
parties desire the following:
1. To complete a sale of goods.
2. To indicate each contracting partys costs, risks, and obli-
gations concerning these aspects of delivery:
a. When is the delivery completed?
b. How does a party ensure that the other party has met
the standard of performance?
c. Which party must obtain requisite licenses and comply
with government-imposed import/export formalities?
d. What are the modes and terms of carriage?
e. What are the delivery terms?
f. When is the risk of loss transferred from the seller to
the buyer?
g. How will transport and other costs be divided be-
tween the parties?
h. What notices are the parties required to give to each
other regarding the transport and transfer of the goods?
3. To establish basic terms of transport and delivery in a
short format.
Incoterms Do Not . . .
Incoterms 2010 are not sufficient on their own to express
the full intent of the parties. They do not:
1. Apply to con tracts for services.
2. Define contractual rights and obligations other than for
delivery.
3. Specify details of the transfer, transport, and delivery
of the goods.
4. Determine how title to the goods will be transferred.
5. Protect a party from risk of loss.
6. Define the remedies for breach of contract.
Illustrated Guide to Incoterms 2010
The World Trade Press Illustrated Guide to Incoterms
2010 was designed to give a graphic representation of the
buyers and sellers risks and costs under each of the 11 In-
coterms. The material on each facing page gives a summary
of seller and buyer responsibilities.

1. Incoterms is a registered trademark of the International Chamber of Commerce (ICC), and is used here for informational purposes only.
This illustrated guide is independently authored and published and is not sponsored or endorsed by, or affiliated with the ICC. The full
text of Incoterms 2010 (117 pages) is contained in ICC publication No. 715, ISBN 978-92-8420080-1. Contact ICC Publishing, Inc.,
1212 Avenue of the Americas, 21st Floor, New York, NY 10036 USA, Tel: +[1] (212) 703-5066, www.iccbooksusa.net, or ICC Publish-
ing S.A., 38 Cours Albert, 1er, 75008 Paris, France, Tel: +[33] (1) 49 53 28 28, www.iccbooks.com.
The World Trade Press Illustrated Guide to Incoterms 2010 is 2000-2010 by World Trade Press.

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

4 World Trade Press Illustrated Guide to Incoterms 2010
Incoterms Groups
In the past, Incoterms were arranged into four groups:
E (Departure), F (Main carriage unpaid), C (Main carriage
paid), and D (Arrival). Traders, however, were mistakenly
picking ocean transport terms (like FOB) for shipments by
air. Incoterms 2010 classifies terms by mode of transport,
but the four original groupings remain valid:
Incoterms 2010 Groups
Group E EXW EX Works
Departure (...named place of delivery)
Group F FCA Free CArrier
Main (...named place of delivery)
Carriage
Unpaid FAS Free Alongside Ship
(...named port of shipment)
FOB Free On Board
(...named port of shipment)
Group C CFR Cost and FReight
Main (...named port of destination)
Carriage
Paid CIF Cost Insurance and Freight
(...named port of destination)
CPT Carriage Paid To
(...named place of destination)
CIP Carriage and Insurance Paid To
(...named place of destination)
Group D DAT Delivered At Terminal
Arrival (...named terminal at port or
place of destination)
DAP Delivered At Place
(...named place of destination)
DDP Delivered Duty Paid
(...named place of destination)
Definitions
deliveryIn common usage, delivery is the act of
delivering something, while the place of delivery is of-
ten the buyers place of business. In Incoterms 2010,
however, delivery is the point where the risk of loss
or damage passes from the seller to the buyer. This is
often the named port or place but not necessarily the
buyers place of business.
pre-carriageThe initial transport of goods from the
sellers premises to the main port or place where main car-
riage begins. Usually by truck, rail, or inland waterway.
main carriageThe primary transport of goods, gen-
erally for the longest part of the journey and generally
from one country to another. Usually by sea vessel or
by airplane, but also by truck, rail, or inland waterway.
onward carriageTransport from the port, terminal, or
place of arrival in the country of destination to the buyers
premises. Usually by truck, rail, or inland waterway.
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
Incoterms Classes
As mentioned, picking an inappropriate term can present
problems. The pages describing individual Incoterms will
assist you in making the right choice, but for the moment,
you should know that some terms are applicable for all
modes of transport, while others are applicable only for sea
and inland waterway transport.
Incoterms 2010 Classes
All modes EXW EX Works
of (...named place of delivery)
transport
including FCA Free CArrier
multimodal (...named place of delivery)
CPT Carriage Paid To
(...named place of destination)
CIP Carriage and Insurance Paid To
(...named place of destination)
DAT Delivered at Terminal
(...named terminal at port or
place of destination)
DAP Delivered At Place
(...named place of destination)
DDP Delivered Duty Paid
(...named place of destination)
Sea and FAS Free Alongside Ship
inland (...named port of shipment)
waterway
transport FOB Free On Board
only (...named port of shipment)
CFR Cost and FReight
(...named port of destination)
CIF Cost Insurance and Freight
(...named port of destination)
multimodalUse of more than one mode of transport
(road, rail, sea, air) to transport goods (or people) from ori-
gin to final destination.
carrierIn common usage, a carrier is a firm that
transports goods or passengers for hire, rather than sim-
ply arranging for such transport. In Incoterms, however,
the carrier can be any person or firm who by contract
undertakes to perform or procure such services. The
buyer nominates the carrier and the seller need only
accept the nomination for the term to work.
string saleThe sale, and successive resale, of a single
shipment of goods while en route from place of shipment
to final destination. This is common in the commodity
trade, where oil, grain, and ore shipments are sold and re-
sold before the vessel arrives in port. A number of Inco-
terms now take this practice into account by giving the
seller the option to procure goods already so delivered.
World Trade Press Illustrated Guide to Incoterms 2010
Notes on Incoterms
1. Underlying ContractIncoterms were designed to
be used within the context of a written contract for the
sale of goods (not services). Incoterms, therefore, re-
fer to the contract of sale, rather than the contract of
carriage of the goods. Buyers and sellers should spec-
ify that their contract be governed by Incoterms 2010.
2. Two ComponentsEach Incoterm has two compo-
nents: the term name, and a named place, port, or termi-
nal. For example: EXW, Sellers warehouse located at
___. Or, DDP, Buyers warehouse located at ___. An
Incoterm is incomplete without both components.
3. Precise Point of DeliveryIn addition to a specific
named port, place, or terminal, it may be neces-
sary to name a precise point of delivery. For exam-
ple, the original terms of sale may state CFR Port of
Rotterdam. The Port of Rotterdam, however, is
huge. The buyer who prefers a particular point within
the port should name the specific point in the sales
contract and in the trade term. This may be an impor-
tant issue in situations where the buyer is responsible
for unloading, storage, and other charges once the
goods have been made available at the named place.
In some cases it may not be possible for the buyer to
name the precise point of delivery at the time of con-
tract. However, if the buyer does not do so in a timely
manner, the seller may make delivery within a range
of places that is within the terms of the contract, but
inconvenient for the buyer.
4. EXW and FCAThe buyer who purchases on Ex
Works (EXW) or Free Carrier (FCA) terms will need
to arrange for the contract of carriage. Also, since the
seller will not receive a bill of lading, using a letter of
credit requiring a bill of lading will not be possible.
5. EDI: Electronic Data InterchangeIt is increas-
ingly common for sellers to prepare and transmit doc-
uments electronically. Incoterms provide for EDI and
electronic documents so long as buyers and sellers
agree on their use in the sales contract.
6. Insurable InterestIn most cases, neither the buyer
nor the seller is obligated to provide insurance. In fact,
only two Incoterms mention insurance: CIP and CIF.
In both cases the seller is obligated to secure insur-
ance for the buyer, but only for minimum coverage.
The seller and buyer, however, may have insurable
interest in the goods, and prudence may dictate pur-
chase of insurance coverage or additional insurance
coverage.
7. Customs of the Port or TradeIncoterms are an
attempt to standardize trade terms for all nations and
all trades. However, different ports and different
trades have their own customs and practices. It is best
if such practices are specified in the sales contract.
8. Export/Import Customs ClearanceIt is usually
desirable that export customs formalities be handled by
the seller and import customs formalities be handled by
the buyer. However, some trade terms (such as EXW)
require that the buyer handle export formalities, while
others, such as DDP, require that the seller handle im-
port formalities. In each case, the buyer and seller will
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
5
have to assume risks and costs associated with export
and import formalities and duties. In some cases, for-
eign exporters may not be able to obtain import licenses
in the country of import. Parties should research the
pertinent local trade laws before using such terms.
9. Variants of Incoterms (Added Wording)
Incoterms give no guidance regarding the addition of
words to individual terms. In practice, the seller and
buyer may agree to added wording. For example, if the
seller agrees to DDP terms, agreeing to pay for customs
formalities and import duties but not for VAT (value
added tax), the term DDP VAT Unpaid may be used.
Adding wording to an Incoterm, however, may present a
risk if the wording contradicts the fundamental meaning
of the Incoterm itself. For example, if the seller agrees to
CIF, seller responsible for unloading the aircraft, there
is an inherent problem, because CIF can only be used for
transport by sea or inland waterway. Use additional
wording only if you are certain that it is consistent with
the meaning of the term used.
10. PackingIt is the responsibility of the seller to provide
packaging unless the goods shipped are conventionally
shipped unpackaged (commodities such as oil or grain). In
most situations it is best if the buyer and seller agree in the
sales contract on the type and extent of packing required.
However, it may not be possible to know beforehand the
type or duration of transport. As a result, it is the responsi-
bility of the seller to provide for safe and appropriate pack-
aging, but only to the extent that the buyer has made the
circumstances of the transport known beforehand. If the
seller is responsible for packing goods in an ocean or air
freight container, their responsibility includes stuffing the
container properly to withstand shipment.
11. InspectionThere are several issues related to inspec-
tions: a) the seller is responsible for costs of inspection to
make certain the quantity and quality of the shipment are
in conformity with the sales contract; b) pre-shipment in-
spections as required by the export authority are the re-
sponsibility of the party responsible for export
formalities; c) import inspections as required by the im-
port authority are the responsibility of the party responsi-
ble for import formalities; and d) third-party inspections
for independent verification of quality and quantity (if re-
quired) are generally the responsibility of the buyer. The
buyer may require such an inspection and inspection
document as a condition of payment.
12. Passing of Risks and CostsIn all E, F, and D terms,
both risks and costs pass from seller to buyer at the named
place, port, or terminal. In all C terms, however, the trans-
fer of risks occurs at a different point than the transfer of
costs. Refer to each term for details.
13. CarrierIn common usage, a carrier is a firm that
transports goods or passengers for hire, rather than
simply arranging for such transport. In Incoterms,
however, carrier is the party with whom carriage is
contracted and can be any person or firm. In practice,
the buyer nominates the carrier and the seller need
only accept the nomination. It is recommended that
the carrier be named in the sales contract.
 6

EXW SELLER BUYER

Ex Works (. . . named place of delivery)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

EXW, Ex Works (. . . named place of delivery)

In Ex Works, the seller/exporter/manufacturer merely
makes the goods available to the buyer at the sellers
named place of delivery, which is commonly, but not
necessarily, the sellers place of business.
With EXW, the seller has no responsibility to load the
goods onto a truck or other transport vehicle or to clear the
goods for export. This trade term places the greatest re-
sponsibility on the buyer and minimum obligations on the
seller.
the contracts of sale and carriage the precise point of delivery. Payment terms for Ex Works transactions are generally
The EXW term is generally not recommended for inter- cash in advance and open account.
national trade transactions, as loading the goods at the
Examples
sellers named place and handling export formalities usu- EXW, ABC Factory, Full Address, Paris, France
ally places too much of a burden upon the buyer. EXW, XYZ Printing Plant, Full Address, Singapore
If the buyer cannot handle loading the goods or export
formalities, the EXW term should not be used. In such a Modes of Transport
case, FCA is recommended. AirYes
The EXW term is often used when making an initial quo- RailYes

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

The parties to the transaction, however, may stipulate that the
seller be responsible for loading the goods onto a transport ve-
hicle at the risk and cost of the buyer. Such a stipulation is a
variant and must be made within the contract of sale.
When using the FCA term, it is advisable to clearly specify in
tation for the sale of goods. It represents the cost of the RoadYes
goods without any other costs included. SeaYes
The EXW term is commonly used in courier shipments Inland WaterwayYes
when the courier picks up the shipment from clients MultimodalYes
premises and loads couriers own truck.
World Trade Press Illustrated Guide to Incoterms 2010
 EXW
Ex Works (. . . named place of delivery)
Incoterm Category
EXW specifies that the seller/exporter/manufacturer merely
makes the goods available to the buyer, not cleared for ex-
port, at the sellers named place of delivery, which is com-
monly, but not necessarily, the sellers place of business.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Provide the buyer, at the buyers risk and cost, assis-
tance in securing any license, documents, authoriza-
tions, and security clearance required for the export of
the goods.
3. Carriage and InsuranceThe seller has no obliga-
tion to provide for carriage of goods or for insurance.
Provide the buyer, at the buyers request and cost (if
any), information required to obtain insurance.
4. DeliveryMake the goods available to the buyer at
the named place and point of delivery at the time stipu-
lated in the sales contract. If the buyer has not stipu-
lated a specific point at the named place of delivery, the
seller may pick one that suits sellers purposes.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been made available to the
buyer at the named place of delivery, at the agreed-
upon time stipulated in the sales contract.
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
6. CostsPay all costs until the goods have been made
available to the buyer at the named place of delivery.
7. Notice to the BuyerProvide notice that enables
the buyer to take delivery of the goods.
8. Delivery and Transport Document(s)The seller
has no obligation to provide the buyer with a delivery
document.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, with assistance in securing information and doc-
uments, including security information, the buyer requires
for export, transport, and import of the goods to the final
destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any export and import licenses or authoriza-
tions, and handle all export and import customs for-
malities.
3. Carriage and InsuranceBuyer has no obligation
to seller for carriage or insurance.
Provide for carriage of the goods from the named
place of delivery to the buyers destination.
4. Taking DeliveryTake delivery of the goods as
provided in the sales contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered (made
available) at the named place of delivery as provided
in the sales contract. Assume all risk of loss or dam-
age if the goods are not picked up at the agreed-upon
time and place.
6. CostsPay all costs from the time the goods have
been delivered (made available) at the named place of
delivery. Pay all costs related to carriage of the goods
from the named place of delivery to the buyers final
destination. Pay all costs resulting from failure to take
delivery at the named place and time. Pay all costs re-
lating to export and import formalities, duties, fees,
and taxes, and other charges including transshipment.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time for taking deliv-
ery or the point of taking delivery at the named place
World Trade Press Illustrated Guide to Incoterms 2010
of delivery, to give seller sufficient notice.
8. Proof of DeliveryProvide the seller with evidence
of taking delivery.
9. Inspection(s)Pay for pre-shipment inspections in-
cluding those required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, the buyer requires for ex-
port and import formalities, security clearance, and
transport of the goods to the final destination.
7
 8

FCA SELLER BUYER

Free Carrier (. . . named place of delivery)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

FCA, Free Carrier (. . . named place of delivery)

In Free Carrier, the seller/exporter/manufacturer clears
the goods for export and delivers them to the carrier
specified by the buyer at the named place of delivery.
If the named place of delivery is the sellers place of busi-
ness, the seller is responsible for loading the goods onto
the transport vehicle. If the named place is any other loca-
tion, such as the loading dock of the carrier, the seller is not
responsible for unloading.
When using the FCA term, it is advisable to clearly specify in
In the FCA term, however, the carrier can be any person Examples
who by contract undertakes to perform or procure such FCA, ABC Shipping, Door 4, Full Address, Hamburg,
services by any of the above methods of transport includ- Germany
ing multimodal. Therefore, a person, such as a freight for- FCA, XYZ Airlines Cargo Terminal, San Francisco In-
warder, can act as a carrier. With the FCA term, the ternational Airport (SFO), USA
buyer nominates the carrier, and the seller need only ac-
cept the nomination for the term to work. Modes of Transport
AirYes
The FCA term may be used for any mode of transport in-
cluding multimodal. RailYes

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

the contracts of sale and carriage the precise point of delivery. With FCA, the named place of delivery is domestic to the RoadYes
Carrier has a special meaning. Technically, a carrier is a buyer. SeaYes
firm that itself transports goods or passengers for hire, rather The FCA term is often used when making an initial quo- Inland WaterwayYes
than simply arranging for such transport. Examples are a tation for the sale of goods. MultimodalYes
shipping line, airline, trucking firm, or railway.
World Trade Press Illustrated Guide to Incoterms 2010
 FCA
Free Carrier (. . . named place of delivery)
Incoterm Category
FCA is an F term specifying that the seller/exporter/
manufacturer is responsible for delivering the goods to
the carrier, export cleared, at the named place of deliv-
ery, but does not bear risk or costs afterwards.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export li-
censes, documents, and authorizations and carry out
export formalities and procedures.
3. Carriage and InsuranceThe seller has no obliga-
tion to provide for carriage of goods or for insurance.
At the request of the buyer, the seller may contract for
carriage on standard industry terms at the buyers risk
and cost.
Provide information to enable the buyer to obtain
insurance.
4. DeliveryDeliver the goods to the carrier at the
named place of delivery at the time stipulated in the
sales contract. If the named place of delivery is the
sellers place of business, the seller is responsible for
loading the goods onto the transport vehicle. If the
named place is any other location, such as the loading
dock of the carrier, the seller is not responsible for un-
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
loading. If the buyer has not stipulated a specific point
at the named place of delivery, the seller may pick one
that suits sellers purposes.
5. Risk TransferAssume all risk of loss or damage to
the goods until they have been delivered to the carrier
at the named place of delivery, within the agreed-upon
time stipulated in the sales contract.
6. CostsPay all costs until the goods have been deliv-
ered to the carrier at the named place of delivery. Pay
all costs relating to export, including customs formal-
ities, duties, and taxes.
7. Notice to the BuyerAt buyers risk and cost, pro-
vide notice to the buyer that the goods have been de-
livered to the carrier, or that the carrier did not take
possession of the goods at the agreed-upon time.
8. Delivery and Transport Document(s)Provide
the buyer with a proof of delivery. At the buyers re-
quest, if the proof of delivery is not a transport docu-
ment, help the buyer obtain a transport document.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, the buyer requires
for transport and import of the goods to the final destina-
tion. Reimburse the buyer for buyers costs related to se-
curing information and documents, including security
information the seller requires for export formalities and
security clearance of the goods.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import customs formalities.
3. Carriage and InsuranceProvide for carriage of
the goods from the named place of delivery.
Buyer has no obligation to the seller for insurance.
4. Taking DeliveryTake delivery of the goods as
provided in the sales contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered to the
carrier at the named place of delivery. Assume all risk
of loss or damage and other costs if the buyers carrier
fails to take delivery at the agreed-upon time and
place.
6. CostsPay all costs for carriage and insurance from
the time the goods have been delivered to the carrier
at the named place of delivery. Pay all costs resulting
from failure to take delivery at the named place and
time. Pay all costs relating to import formalities, du-
ties, fees, and taxes, and other charges including
transshipment.
7. Notice to SellerGive sufficient notice to the seller
of the name of the carrier, the delivery point, the time
World Trade Press Illustrated Guide to Incoterms 2010
or period for delivery, and the mode of transport.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named place of delivery.
9
 10

FAS SELLER BUYER

Free Alongside Ship (. . . named port of shipment)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Sea or Inland Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Waterway Only Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

FAS, Free Alongside Ship (. . . named port of shipment)

In Free Alongside Ship, the seller/exporter/manufacturer
clears the goods for export and places them alongside the
ship (on a dock or barge) at the named port of ship-
ment.
When using the FAS term, it is advisable to clearly specify
in the contract of sale, and in contracts of carriage, not only at a terminal and not alongside a ship. In such situations,
the named port of shipment, but also the precise loading
point at or within the named port of shipment. This is par-
ticularly the case when the named port of shipment is
during transport, as is common in the commodity trade. Examples
The FAS term is commonly used in the sale of bulk com- FAS, ABC Shipping Line, Dock #2, Port Elizabeth,
modity cargo such as oil, grains, and ore. South Africa
If the shipment is containerized or to be containerized, FAS, XYZ Shipping Line, Quay #4, Le Havre, France
common practice is to deliver the shipment to the carrier
Modes of Transport
AirNo
the FCA term is recommended.
The named place in FAS is a port, and therefore the term is RailNo
used only for ocean or inland waterway transport. RoadNo

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

large and options abound for delivery points. With FAS, the named port of shipment is domestic to the SeaYes
With FAS, the seller has the option to deliver the goods seller. Inland WaterwayYes
alongside the ship, or to procure goods already so deliv- Usual payment terms for FAS transactions are cash in ad- MultimodalNo
ered. This is a reference to so-called string sales vance and open account, but letters of credit are also
where a single shipment might be resold multiple times used.
World Trade Press Illustrated Guide to Incoterms 2010
 FAS
Free Alongside Ship (. . . named port of shipment)
Incoterm Category
FAS is an F term specifying that the seller/exporter is re-
sponsible for delivering the goods, export cleared, along-
side the ship, but does not bear risk or costs afterwards.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
Used only for ocean or inland waterway transport.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export li-
censes, documents, and authorizations and carry out
export formalities and procedures.
3. Carriage and InsuranceThe seller has no obliga-
tion to provide for main carriage of goods or for in-
surance. At the request of the buyer, the seller may
contract for carriage on standard industry terms at the
buyers risk and cost.
No obligation to provide insurance. Provide information
to enable the buyer to obtain insurance.
4. DeliveryDeliver the goods alongside the ship at
the named port of shipment, or procure the goods so
delivered, within the agreed-upon time stipulated in
the sales contract. If the buyer has not stipulated a
specific loading point at the named port of shipment,
the seller may pick one that suits sellers purposes.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered alongside
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
the ship at the named port of shipment within the
agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been deliv-
ered alongside the ship at the named port of shipment.
Pay all costs relating to export, including customs for-
malities, duties, and taxes.
7. Notice to the BuyerAt buyers risk and cost, pro-
vide notice to the buyer that the goods have been de-
livered alongside the ship at the named port of
shipment, or that the ship did not take possession of
the goods at the agreed-upon time.
8. Delivery and Transport Document(s)Provide
the buyer with a proof of delivery that the goods have
been delivered alongside the ship at the named port of
shipment. At the buyers request, if the proof of deliv-
ery is not a transport document, help the buyer obtain a
transport document.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers re-
quest and cost, assistance in securing information and
documents, including security information, required by
the buyer for transport and import of the goods to the
final destination. Reimburse the buyer for buyers costs
related to securing information and documents, includ-
ing security information, the seller requires for export
formalities and security clearance of the goods to the
named port of shipment.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import customs formalities.
3. Carriage and InsuranceProvide for loading and
carriage of the goods from the named port of shipment.
Buyer has no obligation to the seller for insurance.
4. Taking DeliveryTake delivery of the goods as
provided in the sales contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered along-
side the ship at the named port of shipment as pro-
vided in the sales contract. If the buyer nominates the
ship, assume all risk of loss or damage and costs if the
named ship does not arrive on time, or if the ship fails
to take the goods, or if sufficient notice is not given to
seller regarding ship name, loading point, and time.
6. CostsPay all costs for carriage and insurance from the
time the goods have been delivered alongside the ship at
the named port of shipment. Pay all costs resulting from
failure to take delivery at the named place and time. Pay
all costs relating to import formalities, duties, fees, and
taxes, and other charges including transshipment.
7. Notice to SellerIf the buyer nominates the ship, give
World Trade Press Illustrated Guide to Incoterms 2010
sufficient notice to the seller of the name of the ship, the
loading point, and the time or period for delivery.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named port of shipment.
11
 12

FOB SELLER BUYER

Free On Board (. . . named port of shipment)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Sea or Inland Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Waterway Only Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

FOB, Free On Board (. . . named port of shipment)

In Free On Board, the seller/exporter/manufacturer clears
the goods for export and delivers them on board the
named vessel at the named port of shipment.
This is a change from Incoterms 2000, where the seller was
responsible only to deliver the goods past the ships rail. The FOB term is commonly used in the sale of bulk
With FOB, the seller has the option to deliver the goods
on board the vessel, or to procure goods already so de-
livered. This is a reference to so-called string sales,
where a single shipment might be resold multiple times
If the shipment is containerized or to be containerized, transport. The FCA term, on the other hand, is applicable
common practice is to deliver the shipment to the carrier to all modes of transport.
at a terminal and not on board a ship. In such situations,
Examples
the FCA term is recommended. FOB, ABC Shipping Line, Vessel XYZ, Buenos Aires,
Argentina
commodity cargo such as oil, grains, and ore. FOB, DEF Shipping Line, Vessel UVW, Gdansk, Poland
The key document in FOB transactions is the On Board
Bill of Lading. Modes of Transport
The named place in FOB is a port, and therefore the term is AirNo

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

during transport, as is common in the commodity trade.
The named place in FOB is a port and therefore the term is
used only for ocean or inland waterway transport.
With FOB, the named port of shipment is domestic to the
seller.
used only for ocean or inland waterway transport. RailNo
Sellers and buyers often misuse the FOB term. FOB does RoadNo
not mean loading goods onto a truck or train at the sellers SeaYes
place of business. FOB is used only in reference to deliver- Inland WaterwayYes
ing the goods on board a ship in ocean or inland waterway MultimodalNo
World Trade Press Illustrated Guide to Incoterms 2010
 FOB
Free on Board (. . . named port of shipment)
Incoterm Category
FOB is an F term specifying that the seller/exporter is
responsible for delivering the goods, export cleared, on
board a ship, but does not bear risk or costs afterwards.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
Used only for ocean or inland waterway transport.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export li-
censes, documents, and authorizations and carry out
export formalities and procedures.
3. Carriage and InsuranceThe seller has no obliga-
tion to provide for main carriage of goods or for in-
surance. At the request and cost of the buyer, the
seller may contract for carriage on standard industry
terms at the buyers risk and cost.
No obligation to provide insurance. Provide information
to enable the buyer to obtain insurance.
4. DeliveryDeliver the goods on board the named ves-
sel at the named port of shipment at the time stipulated
in the sales contract, or procure the goods so deliv-
ered. If the buyer has not stipulated a specific loading
point at the named port of shipment, the seller may
pick one that suits sellers purposes.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered on board
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
the ship at the named port of shipment, within the
agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been deliv-
ered on board the vessel at the named port of ship-
ment. Pay all costs relating to export, including
customs formalities, duties, and taxes.
7. Notice to the BuyerAt buyers risk and cost, pro-
vide notice to the buyer that the goods have been de-
livered on board the ship at the named port of
shipment, or that the ship did not take possession of
the goods at the agreed-upon time.
8. Delivery and Transport Document(s)Provide
the buyer with a proof of delivery that the goods have
been delivered on board the ship at the named port of
shipment. At the buyers request, if the proof of deliv-
ery is not a transport document, help the buyer obtain
a transport document.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, required by the
buyer for transport and import of the goods to the final
destination. Reimburse the buyer for buyers costs related
to securing information and documents, including security
information the seller requires for export formalities and
security clearance of the goods to the ship at the named
port of shipment.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import customs formalities.
3. Carriage and InsuranceProvide for carriage of
the goods from the named port of shipment.
Buyer has no obligation to the seller for insurance.
4. Taking DeliveryTake delivery of the goods as
provided in the sales contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered on board the
ship at the named port of shipment. If the buyer nominates
the ship, assume all risk of loss or damage and costs if the
named ship does not arrive on time, or if the ship fails to
take the goods, or if sufficient notice is not given to seller
regarding ship name, loading point, and time.
6. CostsPay all costs for carriage and insurance from
the time the goods have been delivered on board the
ship at the named port of shipment. Pay all costs re-
sulting from failure to take delivery at the named
place and time. Pay all costs relating to import for-
malities, duties, fees, and taxes, and other charges in-
cluding transshipment.
7. Notice to SellerIf the buyer nominates the ship, give
World Trade Press Illustrated Guide to Incoterms 2010
sufficient notice to the seller of the name of the vessel,
the loading point, and the time or period for delivery.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named port of shipment.
13
 14

CFR SELLER BUYER

Cost and Freight (. . . named port of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Sea or Inland Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Waterway Only Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

CFR, Cost and Freight (. . . named port of destination)

In Cost and Freight, the seller/exporter/manufacturer clears
the goods for export and delivers them on board the ship at
the port of shipment (not destination). This is where risk
passes from seller to buyer.
The seller, however, is responsible for contracting for and
paying the costs associated with transport of the goods to the
named port of destination. This is where costs transfer
from seller to buyer.
It is important to note that the transfer of risk from seller to common practice is to deliver the shipment to the carrier
With CFR, the seller has the option to deliver the goods on
board the vessel, or to procure goods already so deliv-
ered. This is a reference to so-called string sales where
a single shipment might be resold multiple times during
transport, as is common in the commodity trade.
The named destination in CFR is a port, and therefore the
term is used only for ocean or inland waterway transport.
If the shipment is containerized or to be containerized,
modity cargo such as oil, grains, and ore, b) oversize and over-
weight cargo that will not fit into an ocean container, and c)
cargo that exceeds the weight limitations of ocean containers.
Examples
CFR, Terminal 2, Port of Oakland, California, USA
CFR, ABC Terminal, Port of Tokyo, Japan
Modes of Transport
AirNo

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

buyer occurs at a different point than the transfer of costs. at a terminal and not on board a ship. In such situations, RailNo
When using the CFR term, it is advisable to clearly specify the CPT term is recommended. RoadNo
in the contract of sale, and in contracts of carriage, not only With CFR, the named port of destination is domestic to SeaYes
the named port of destination, but also the precise point at the buyer. Inland WaterwayYes
or within the named port of destination. The CFR term is commonly used the sale of a) bulk com- MultimodalNo
World Trade Press Illustrated Guide to Incoterms 2010
 CFR
Cost and Freight (. . . named port of destination)
Incoterm Category
CFR is a C term specifying that the seller is responsible
for delivering the goods on board the ship at the port of
shipment and contracting and paying for carriage to the
named port of destination. C terms evidence ship-
ment (as opposed to arrival) contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export licenses,
documents, and authorizations and carry out export
formalities and procedures.
3. Carriage and InsuranceContract or procure a
contract for the carriage of the goods from the point
of delivery to the named port of destination.
No obligation to provide insurance. Provide information
to enable the buyer to obtain insurance.
4. DeliveryDeliver the goods on board the ship at the
port of shipment (not destination) or procure goods al-
ready so delivered within the agreed-upon time.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered on board
the ship at the port of shipment (not destination), within
the agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been deliv-
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
ered on board the ship at the port of shipment. Pay all
costs of loading and carriage to the named port of
destination. Pay for costs of unloading if unloading is
included in the contract for main carriage. Pay all
costs relating to export, including customs formali-
ties, duties, and taxes, as well as costs required for
transshipment through any country up to the named
port of destination.
7. Notice to the BuyerProvide notice that enables
the buyer to take timely possession of the goods at the
named port of destination.
8. Delivery and Transport DocumentsProvide the
buyer with a transport document, dated within the period
agreed, that allows the buyer to claim the goods at the
named port of destination and (unless otherwise agreed)
allows the buyer to sell the goods while in transit through
the transfer of the document or by notification to the sea
carrier. If a negotiable transport document is issued, a full
set of originals must be given to the buyer.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, required by the
buyer for import and transport of the goods from the
named port to the final destination. Reimburse the buyer
for buyers costs related to securing information and docu-
mentation, including security information the seller re-
quires for export formalities, transport, security clearance,
and transshipment to the named port of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import customs formalities.
3. Carriage and InsuranceBuyer has no obligation
to the seller.
4. Taking DeliveryTake delivery of the goods at the
named port of destination as provided in the contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered on board
the ship at the port of shipment (not destination).
6. CostsPay any additional costs for the goods, other than
main carriage, once they have been delivered on board the
ship at the port of shipment. Pay costs of unloading, light-
erage, and wharfage at the port of destination unless such
costs were to be paid by seller under sellers contract for
carriage. Pay all costs relating to import formalities, duties,
fees, and taxes. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time for shipping or
World Trade Press Illustrated Guide to Incoterms 2010
the point of receiving the shipment at the named port
of destination, to give seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named port of destination.
15
 SELLER BUYER
16

CIF
Cost, Insurance, and Freight (. . . named port of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Sea or Inland Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Waterway Only Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

CIF, Cost, Insurance, and Freight (. . . named port of destination)

In Cost, Insurance, and Freight, the seller/exporter/manufac-
turer clears the goods for export and delivers them on board
the ship at the port of shipment (not destination). This is
where risk passes from seller to buyer.
The seller, however, is responsible for contracting for and
paying the costs associated with transport of the goods and
minimum cover insurance to the named port of destina-
tion. This is where costs transfer from seller to buyer.
It is important to note that the transfer of risk from seller to common practice is to deliver the shipment to the carrier
With CIF, the seller has the option to deliver the goods on
board the vessel, or to procure goods already so deliv-
ered. This is a reference to so-called string sales
where a single shipment might be resold multiple times
during transport, as is common in the commodity trade.
The named destination in CIF is a port, and therefore the
term is used only for ocean or inland waterway transport.
If the shipment is containerized or to be containerized,
modity cargo such as oil, grains, and ore, b) oversize and over-
weight cargo that will not fit into an ocean container, and c)
cargo that exceeds the weight limitations of ocean containers.
Examples
CIF, Terminal 2, Port of Oakland, California, USA
CIF, ABC Terminal, Port of Tokyo, Japan
Modes of Transport
AirNo

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

buyer occurs at a different point than the transfer of costs. at a terminal and not on board a ship. In such situations, RailNo
When using the CIF term, it is advisable to clearly specify the CIP term is recommended. RoadNo
in the contract of sale and in contracts of carriage, not only With CIF, the named port of destination is domestic to SeaYes
the named port of destination, but also the precise point at the buyer. Inland WaterwayYes
or within the named port of destination. The CIF term is commonly used in the sale of a) bulk com- MultimodalNo
World Trade Press Illustrated Guide to Incoterms 2010
 CIF
Cost, Insurance and Freight (. . . named port of destination)
Incoterm Category
CIF is a C term specifying that the seller is responsible
for delivering the goods on board the ship at the port of
shipment, and contracting and paying for carriage and in-
surance to the named port of destination. C terms evi-
dence shipment (as opposed to arrival) contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all export licenses, docu-
ments, and authorizations and carry out export formali-
ties and procedures.
3. Carriage and InsuranceContract or procure a
contract for the carriage of the goods from the point
of delivery to the named port of destination. Obtain
and pay for minimum cover cargo insurance (Institute
Cargo Clauses, Clause C coverage) from a reputable in-
surance company or underwriter. Insurance must provide
coverage at least to the named port of destination, entitle
the buyer to make a claim directly to the insurer, be for a
minimum of 110% of the contract amount, and be in the
currency of the sales contract. Provide the buyer with an
insurance policy or evidence of insurance. Provide infor-
mation to enable the buyer to obtain additional insurance.
4. DeliveryDeliver the goods on board the ship at the
port of shipment or procure goods already so delivered.
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered on board
the ship at the port of shipment (not destination), within
the agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been delivered
on board the ship at the port of shipment. Pay all costs of
loading and carriage to the named port of destination. Pay
for the cost of insurance as described in #3 above. Pay for
costs of unloading if unloading is included in the contract
for main carriage. Pay all costs relating to export, includ-
ing customs formalities, duties, and taxes, as well as costs 3. Carriage and InsuranceBuyer has no obligation
required for transshipment through any country up to the
named port of destination.
7. Notice to the BuyerProvide notice that enables
the buyer to take timely possession of the goods at the
named port of destination.
8. Delivery and Transport DocumentsProvide the
buyer with a transport document, dated within the period
agreed, that allows the buyer to claim the goods at the
named port of destination and (unless otherwise agreed)
allows the buyer to sell the goods while in transit through
the transfer of the document or by notification to the sea
carrier. If a negotiable transport document is issued, a full
set of originals must be given to the buyer.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, required by the
buyer for import and transport of the goods from the
named port to the final destination. Reimburse the buyer
for buyers costs related to securing information and docu-
mentation, including security information the seller re-
quires for export formalities, transport, security clearance,
and transshipment to the named port of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as per sales contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import customs formalities.
to seller.
4. Taking DeliveryTake delivery of the goods at the
named port of destination as provided in the contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered on board
the ship at the port of shipment (not destination).
6. CostsPay any additional costs for the goods, other than
main carriage, once they have been delivered on board the
ship at the port of shipment. Pay costs of unloading, light-
erage, and wharfage at the port of destination unless such
costs were to be paid by seller under sellers contract for
carriage. Pay all costs relating to import formalities, duties,
fees, and taxes. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
World Trade Press Illustrated Guide to Incoterms 2010
the buyer is entitled to specify a time for shipping or
the point of receiving the shipment at the named port
of destination, to give seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
17
named port of destination.
 18

CPT SELLER BUYER

Carriage Paid To (. . . named place of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

CPT, Carriage Paid To (. . . named place of destination)

In Carriage Paid To, the seller/exporter/manufacturer point at or within the named place of destination. Examples
clears the goods for export and is responsible for deliver- The CPT term may be used for any mode of transport in- CPT, ABC Rail Terminal, Madrid, Spain
ing the goods to the carrier at an agreed-upon place of cluding multimodal. CPT, XYZ Barge Terminal, Frankfurt AM, Germany
shipment (not the destination). This is where risk passes In CPT, the named place of destination is domestic to the Modes of Transport
from seller to buyer. buyer. AirYes
The seller, however, is responsible for contracting for and The CPT term is often used in sales where the shipment
paying the costs associated with transport of the goods to the RailYes
is by air freight, containerized ocean freight, courier ship- RoadYes
named place of destination. This is where costs transfer ments of small parcels, and in ro-ro (roll-on, roll-off)
from seller to buyer. shipments of motor vehicles. SeaYes

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

It is important to note that the transfer of risk from seller to If more than one carrier is used for carriage to the named Inland WaterwayYes
buyer occurs at a different point than the transfer of costs. place of destination, such as in multimodal shipments, the MultimodalYes
When using the CPT term, it is advisable to clearly spec- risk passes when the goods have been delivered to the first
ify in the contract of sale and in contracts of carriage, not carrier.
only the named place of destination, but also the precise
World Trade Press Illustrated Guide to Incoterms 2010
 CPT
Carriage Paid To (. . . named place of destination)
Incoterm Category
Carriage Paid To is a C term specifying that the seller is
responsible for contracting and paying for carriage to the
named place of destination.
C terms evidence shipment (as opposed to arrival)
contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export licenses,
documents, and authorizations and carry out export for-
malities and procedures as well as those required for
transshipment through any country prior to delivery.
3. Carriage and InsuranceContract or procure a
contract for the carriage of the goods from the point
of delivery to the named place of destination.
No obligation to provide insurance. Provide information
to enable the buyer to obtain insurance.
4. DeliveryDeliver the goods to the (first) carrier at the
named place of shipment (not place of destination).
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered to the
(first) carrier at the place of shipment, within the
agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been delivered
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
to the (first) carrier at the named place of shipment. Pay all
costs of loading and carriage to the named place of desti-
nation. Pay costs of unloading if unloading is included in
the contract for main carriage. Pay all costs relating to ex-
port, including customs formalities, duties, and taxes, as
well as costs required for transshipment through any
country up to the named place of destination.
7. Notice to the BuyerProvide timely notice that the
goods have been delivered to the (first) carrier and
notice that enables the buyer to take timely posses-
sion of the goods at the named place of destination.
8. Delivery and Transport DocumentsProvide the
buyer with a transport document, dated within the period
agreed, that allows the buyer to claim the goods at the
named place of destination and (unless otherwise agreed)
allows the buyer to sell the goods while in transit through
the transfer of the document or by notification to the sea
carrier. If a negotiable transport document is issued, a full
set of originals must be given to the buyer.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, required by the
buyer for import and transport of the goods from the
named place to the final destination. Reimburse the buyer
for buyers costs related to securing information and docu-
mentation, including security information the seller re-
quires for export formalities, transport, security clearance,
and transshipment to the named place of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import formalities.
3. Carriage and InsuranceThe buyer has no obli-
gation to seller for carriage or insurance.
4. Taking DeliveryTake delivery of the goods at the
named place of destination as provided in the contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered to the
(first) carrier at the place of shipment.
6. CostsPay costs other than main carriage after the
goods have been delivered to the (first) carrier at the
place of shipment. Such costs include unloading, lighter-
age, and wharfage at the place of destination unless such
costs were to be paid by seller under sellers contract for
carriage. Pay all costs relating to import formalities, du-
ties, fees, and taxes. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time or point of tak-
World Trade Press Illustrated Guide to Incoterms 2010
ing delivery at the named place of destination, to give
seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named place of destination.
19
 20

CIP SELLER BUYER

Carriage and Insurance Paid To (. . . named place of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

CIP, Carriage and Insurance Paid To (. . . named place of destination)

In Carriage and Insurance Paid To, the seller/exporter/ point at or within the named place of destination. Examples
manufacturer clears the goods for export and is responsible The CIP term may be used for any mode of transport in- CIP, ABC Rail Terminal, Siding C, Madrid, Spain
for delivering the goods to the carrier at an agreed-upon cluding multimodal. CIP, XYZ Barge Terminal, Dock A, Frankfurt AM, Germany
place of shipment (not the destination). This is where risk In CIP, the named place of destination is domestic to the Modes of Transport
passes from seller to buyer. buyer. AirYes
The seller, however, is responsible for contracting for and The CIP term is often used in sales where the shipment is RailYes
paying the costs associated with transport of the goods and by air freight, containerized ocean freight, courier ship- RoadYes
minimum cover insurance to the named place of destina- ments of small parcels, and in ro-ro (roll-on, roll-off) SeaYes
tion. This is where costs transfer from seller to buyer. shipments of motor vehicles. Inland WaterwayYes

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

It is important to note that the transfer of risk from seller to If more than one carrier is used for carriage to the named MultimodalYes
buyer occurs at a different point than the transfer of costs. place of destination, such as in multimodal shipments, the
When using the CIP term, it is advisable to clearly spec- risk passes when the goods have been delivered to the first
ify in the contract of sale and in contracts of carriage, not carrier.
only the named place of destination, but also the precise
World Trade Press Illustrated Guide to Incoterms 2010
 CIP
Carriage and Insurance Paid To (. . . named place of destination)
Incoterm Category
Carriage and Insurance Paid To is a C term specifying
that the seller is responsible for contracting and paying for
carriage and insurance to the named place of destination.
C terms evidence shipment (as opposed to arrival)
contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export licenses,
documents, and authorizations and carry out export for-
malities and procedures as well as those required for
transshipment through any country prior to delivery.
3. Carriage and InsuranceContract or procure a
contract for the carriage of the goods from the point
of delivery to the named place of destination. Obtain
and pay for minimum cover cargo insurance (Institute
Cargo Clauses, Clause C coverage) from a reputable in-
surance company or underwriter. Insurance must provide
coverage at least to the named place of destination, entitle
the buyer to make a claim directly to the insurer, be for a
minimum of 110% of the contract amount, and be in the
currency of the sales contract. Provide the buyer with an
insurance policy or evidence of insurance. Provide infor-
mation to enable the buyer to obtain additional insurance.
4. DeliveryDeliver the goods to the (first) carrier at the
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
named place of shipment (not place of destination).
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been delivered to the
(first) carrier at the place of shipment, within the
agreed-upon time stipulated in the sales contract.
6. CostsPay all costs until the goods have been delivered
to the (first) carrier at the named place of shipment. Pay all
costs of loading and carriage to the named place of desti-
nation. Pay for insurance as described in #3 above. Pay
costs of unloading if unloading is included in the contract
for main carriage. Pay all costs relating to export, includ-
ing customs formalities, duties, taxes, as well as costs re-
quired for transshipment through any country up to the
named place of destination.
7. Notice to the BuyerProvide timely notice that the
goods have been delivered to the (first) carrier and
notice that enables the buyer to take timely posses-
sion of the goods at the named place of destination.
8. Delivery and Transport DocumentsProvide the
buyer with a transport document, dated within the period
agreed, that allows the buyer to claim the goods at the
named place of destination and (unless otherwise agreed)
allows the buyer to sell the goods while in transit through
the transfer of the document or by notification to the sea
carrier. If a negotiable transport document is issued, a full
set of originals must be given to the buyer.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers request
and cost, assistance in securing information and docu-
ments, including security information, required by the
buyer for import and transport of the goods from the
named place to the final destination. Reimburse the buyer
for buyers costs related to securing information and docu-
mentation, including security information the seller re-
quires for export formalities, transport, security clearance,
and transshipment to the named place of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import formalities.
3. Carriage and InsuranceNo obligation to seller.
4. Taking DeliveryTake delivery of the goods at the
named place of destination as provided in the contract.
5. Risk TransferAssume all risk of loss or damage
from the time the goods have been delivered to the
(first) carrier at the place of shipment.
6. CostsPay any additional costs for the goods, other
than main carriage, once they have been delivered to the
(first) carrier at the place of shipment. Such costs include
unloading, lighterage, and wharfage at the place of desti-
nation unless such costs were to be paid by seller under
sellers contract for carriage. Pay all costs relating to im-
port formalities, duties, fees, and taxes. Pay costs of on-
ward carriage.
World Trade Press Illustrated Guide to Incoterms 2010
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time or point of tak-
ing delivery at the named place of destination, to give
seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-related
data requirements. Reimburse the seller for sellers costs
related to securing information or documentation, in-
cluding security information, that the buyer requires for
import formalities, security clearance, and transport of
the goods to the final destination.
At the sellers request and cost, provide the seller with
any documents and information required for export,
transport, and security clearance of the goods to the
21
named place of destination.
 SELLER BUYER
22

DAT
Delivered At Terminal (. . . named terminal at port or place of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

DAT, Delivered At Terminal (. . . named terminal at port or place of destination)

In Delivered At Terminal, the seller/exporter/manufac- tion is domestic to the buyer. Modes of Transport
turer clears the goods for export and is responsible for The DAT term may be used for any mode of transport in- AirYes
their delivery to the named terminal at port or place of cluding multimodal. RailYes
destination. All forms of payment are used in DAT transactions. RoadYes
In DAT, the seller makes the goods available to the buyer The DAT term is ideal for multimodal transport. SeaYes
unloaded from the arriving means of transport. DAT is the only term under which the seller is responsi- Inland WaterwayYes
The terminal can be of any sort: a sea, road, air, or rail ter- ble for unloading. MultimodalYes
minal; a warehouse, a quay, or container yard; and cov-
ered or uncovered. Examples

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

When using the DAT term, it is advisable to clearly specify DAT, Terminal XYZ, Charles de Gaulle Airport, Paris,
in the contract of sale and in contracts of carriage, not only France
the terminal by name, but also the precise point at or within DAT, Sea Terminal ABC, Port of New York, USA
the terminal at the named port or place of destination.
World Trade Press Illustrated Guide to Incoterms 2010

In DAT, the named terminal at port or place of destina-

 DAT
Delivered At Terminal (. . . named terminal at port or place of destination)
Incoterm Category
Delivered At Terminal is a D term specifying that the
seller is responsible for all costs associated with deliver-
ing the goods to the named terminal at the port or place
of destination, excluding import customs formalities, du-
ties, fees, and taxes.
D terms evidence arrival (as opposed to shipment)
contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export licenses,
documents, and authorizations and carry out export for-
malities and procedures as well as those required for
transshipment through any country prior to delivery.
3. Carriage and InsuranceContract and pay for the
carriage of the goods to the named terminal at port or
place of destination. No obligation to the buyer to se-
cure a contract of insurance. At the buyers request
and cost, provide information to enable the buyer to
obtain insurance.
4. DeliveryMake the goods available to the buyer,
unloaded from the arriving means of transport, at the
named terminal at port or place of destination, within
the agreed-upon time.
5. Risk TransferAssume all risks of loss or damage
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
to the goods until they have been made available to
the buyer, unloaded from the arriving means of trans-
port, at the named terminal at port or place of destina-
tion, within the agreed-upon time.
6. CostsPay all costs until the goods have been made
available to the buyer, unloaded from the arriving
means of transport, at the named terminal at port or
place of destination. Pay all costs relating to export,
including export customs formalities, duties, fees, and
taxes, as well as those required for transshipment
through any country prior to delivery. Pay all costs of
loading and carriage to the place of destination. Pay
for costs of unloading the goods at terminal.
7. Notice to the BuyerProvide timely notice that en-
ables the buyer to take possession of the goods at the
named terminal at port or place of destination, within the
agreed-upon time.
8. Delivery and Transport DocumentsProvide the
buyer with a document that will allow the buyer to
claim the goods at the named terminal.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport, unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers re-
quest and cost, assistance in securing information and
documents, including security information, required
by the buyer for import and transport of the goods
from the named terminal to the final destination.
Reimburse the buyer for buyers costs related to se-
curing information and documentation, including se-
curity information, the seller requires for export
formalities, transport, security clearance, and trans-
shipment to the named terminal.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import formalities.
3. Carriage and InsuranceBuyer has no obligation
to the seller for contracts of carriage or insurance.
4. Taking DeliveryTake delivery of the goods at the
named terminal at port or place of destination, as pro-
vided in the sales contract.
5. Risk TransferAssume risk of loss or damage
from the time the goods have been made available,
unloaded, at the named terminal at the port or place of
destination, within the agreed-upon time.
6. CostsPay any additional costs after the goods have
been made available at the named terminal at port or
place of destination, within the agreed-upon time.
Pay costs of import customs formalities, duties, fees,
and taxes. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time or point of tak-
ing delivery at the named place of destination, to give
World Trade Press Illustrated Guide to Incoterms 2010
seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-re-
lated data requirements. Reimburse the seller for
sellers costs related to securing information or docu-
mentation, including security information, that the
buyer requires for import formalities, security clear-
ance, and transport of the goods to the final destina-
tion.
Timely provide the seller, at the sellers request and cost,
with any documents and information required for ex-
port, transport, and security clearance of the goods to the
named terminal at port or place of destination.
23
 24

DAP SELLER BUYER

Delivered At Place (. . . named place of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

DAP, Delivered At Place (. . . named place of destination)

In Delivered At Place, the seller/exporter/manufacturer The DAP term may be used for any mode of transport in- Modes of Transport
clears the goods for export and is responsible for their de- cluding multimodal. AirYes
livery to the named place of destination. All forms of payment are used in DAP transactions. RailYes
In DAP, the seller makes the goods available to the buyer The DAP term is ideal for multimodal transport. RoadYes
on the arriving means of transport at the named place of All forms of payment are used in DAP transactions. SeaYes
destination, not unloaded. Inland WaterwayYes
When using the DAP term, it is advisable to clearly spec- Examples MultimodalYes
ify in the contract of sale and in contracts of carriage, not DAP, Shanghai Free Trade Zone, Terminal 1, Shanghai,
only the named place of destination, but also the precise China

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

point at or within the named place of destination. DAP, Customs Warehouse, Port of Stockholm, Sweden
In DAP, the named place of destination is domestic to the
buyer and is often the buyers place of business.
In DAP, the seller is not responsible for import customs
formalities, duties, fees, or taxes.
World Trade Press Illustrated Guide to Incoterms 2010
 DAP
Delivered At Place (. . . named place of destination)
Incoterm Category
Delivered At Place is a D term specifying that the seller
is responsible for all costs associated with delivering the
goods to the named place of destination, excluding im-
port customs formalities, duties, fees, and taxes.
D terms evidence arrival (as opposed to shipment)
contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export li-
censes, documents, and authorizations and carry out
export formalities and procedures as well as those
required for transshipment through any country
prior to delivery.
3. Carriage and InsuranceContract and pay for the
carriage of the goods to the named place of destina-
tion. No obligation to the buyer to secure a contract of
insurance. At buyers request and cost, provide infor-
mation to enable the buyer to obtain insurance.
4. DeliveryMake the goods available to the buyer, not
unloaded, from the arriving means of transport, at the
named place of destination, within the agreed-upon time.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been made available to
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
the buyer, not unloaded, from the arriving means of
transport, at the named place of destination, within
the agreed-upon time.
6. CostsPay all costs until the goods have been made
available to the buyer, not unloaded from the arriving
means of transport, at the named place of destination.
Pay all costs relating to export, including export customs
formalities, duties, fees, and taxes, as well as those re-
quired for transshipment through any country prior to
delivery. Pay all costs of loading and carriage to the
place of destination. Pay for costs of unloading if un- 4. Taking DeliveryTake delivery of the goods at the
loading is included in the contract for main carriage.
7. Notice to the BuyerProvide timely notice that en-
ables the buyer to take possession of the goods at the
named place of destination, within the agreed-upon time.
8. Delivery and Transport DocumentsProvide the
buyer with a document that will allow the buyer to
claim the goods at the named place of destination.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide pre-
shipment inspections as required for export formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers re-
quest and cost, assistance in securing information and
documents, including security information, required by
the buyer for import and transport of the goods from
the named place of destination to the final destination.
Reimburse the buyer for buyers costs related to se-
curing information and documentation, including se-
curity information, the seller requires for export
formalities, transport, security clearance, and trans-
shipment to the named place of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Obtain any import licenses or authorizations and han-
dle all import formalities.
3. Carriage and InsuranceBuyer has no obligation
to the seller for contracts of carriage or insurance.
named place of destination as provided in the contract.
5. Risk TransferAssume risk of loss or damage
from the time the goods have been made available at
the named place of destination, within the agreed-
upon time.
6. CostsPay any additional costs after the goods have
been made available at the named place of destination
within the agreed-upon time. Pay for costs of unloading
if unloading was not included in the sellers original con-
tract for carriage. Pay costs of import customs formali-
ties, duties, fees, and taxes. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time or point of tak-
World Trade Press Illustrated Guide to Incoterms 2010
ing delivery at the named place of destination, to give
seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)Pay for pre-shipment inspections un-
less such is required by the country of export.
10. OtherTimely advise the seller of any security-re-
lated data requirements. Reimburse the seller for
sellers costs related to securing information or docu-
mentation, including security information, that the
buyer requires for import formalities, security clear-
ance, and transport of the goods to the final destina-
tion.
At the sellers request and cost, timely provide the
seller with any documents and information required
for export, transport, and security clearance of the
goods to the named place of destination.
25
 26

DDP SELLER BUYER

Delivered Duty Paid (. . . named place of destination)

Seller/ Export Pre-Carriage Delivery Loading at Named Loaded Transport by On Board Discharging Delivery at Onward Import Buyer/
Exporter Documents, to Named at Named Place/Port On Board Air, Rail, Road, Ship or (unloading) at Named Place/ Carriage to Documents, Importer
Named Place Formalities, Place, Not Place/Port, of Shipment Ship or Water, or Vessel, Not Named Place/Port Terminal Named Place, Formalities, Named Place,
and Fees Unloaded Unloaded Vessel Multimodal Unloaded of Destination Not Unloaded and Duties Unloaded
CARRIAGE

RISKS

COSTS

DDP, Delivered Duty Paid (. . . named place of destination)

In Delivered Duty Paid, the seller/exporter/manufacturer In DDP, the named place of destination is domestic to the Modes of Transport
clears the goods for export and is responsible for their de- buyer and is often the buyers place of business. AirYes
livery to the named place of destination. The DDP term may be used for any mode of transport in- RailYes
In DDP, the seller also clears the goods for import in the cluding multimodal. RoadYes
country of destination and pays for all import customs The DDP term is ideal for multimodal transport. SeaYes
formalities, duties, fees, VAT (value added tax), and other All forms of payment are used in DDP transactions. Inland WaterwayYes
taxes. MultimodalYes
The DDP term places the greatest responsibility on the
In DPP, the seller makes the goods available to the buyer seller and the least responsibility on the buyer.
on the arriving means of transport at the named place of

Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

destination, not unloaded. Examples
When using the DDP term, it is advisable to clearly spec- DDP, Importer ABC Warehouse, Full Address, Chicago,
ify in the contract of sale and in contracts of carriage, not Illinois, USA
only the named place of destination, but also the precise DDP, Importer XYZ, Full Address, Paris, France
point at or within the named place of destination.
World Trade Press Illustrated Guide to Incoterms 2010
 DDP
Delivered Duty Paid (. . . named place of destination)
Incoterm Category
Delivered Duty Paid is a D term specifying that the
seller is responsible for all costs associated with deliver-
ing the goods to the named place of destination, includ-
ing import customs formalities, duties, fees, and taxes.
D terms evidence arrival (as opposed to shipment)
contracts.
Note: Documents may be paper or electronic, as custom-
ary or as agreed to by the parties to the transaction.
Modes of Transport Covered
All modes of transport including multimodal.
Sellers Responsibilities (summary)
1. GoodsProvide the goods, commercial invoice, and
other documentation as required by the sales contract.
2. Licenses, Security, and Customs Formalities
Obtain at own risk and cost all required export and
import licenses, documents, and authorizations and
carry out export and import formalities and proce-
dures as well as those required for transshipment
through any country prior to delivery.
3. Carriage and InsuranceContract and pay for the
carriage of the goods to the named place of destina-
tion. No obligation to the buyer to secure a contract of
insurance. At the buyers request and cost, provide in-
formation to enable the buyer to obtain insurance.
4. DeliveryMake the goods available to the buyer, not
unloaded from the arriving means of transport, at the
named place of destination, within the agreed-upon time.
5. Risk TransferAssume all risks of loss or damage
to the goods until they have been made available to
Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com
the buyer, not unloaded from the arriving means of
transport, at the named place of destination, within
the agreed-upon time.
6. CostsPay all costs until the goods have been made
available to the buyer, not unloaded from the arriving
means of transport, at the named place of destination.
Pay all costs relating to export and import, including cus-
toms formalities, duties, fees, and taxes, as well as those
required for transshipment through any country prior to
delivery. Pay all costs of loading and carriage to the
place of destination. Pay for costs of unloading if un-
loading is included in the contract for main carriage.
7. Notice to the BuyerProvide timely notice that en-
ables the buyer to take possession of the goods at the
named place of destination, within the agreed-upon time.
8. Delivery and Transport DocumentsProvide the
buyer with a document that will allow the buyer to
claim the goods at the named place of destination.
9. Checking, Packing, MarkingPay all costs associ-
ated with checking the quality and quantity of the goods
to be in conformity with the sales contract. Provide in-
spections as required for export and import formalities.
Package the goods, unless the goods are conventionally
sold unpackaged. Package the goods as the seller deems
appropriate for transport unless the buyer has given spe-
cific requirements prior to the finalization of the sales
contract. Provide marking appropriate to the packaging.
10. OtherTimely provide the buyer, at the buyers re-
quest and cost, assistance in securing information and
documents, including security information, required by
the buyer for transport of the goods from the named
place of destination to the final destination.
Reimburse the buyer for buyers costs related to securing
information and documentation, including security in-
formation, required by the seller for export formalities,
transport, security clearance, import formalities, and
transshipment to the named place of destination.
Buyers Responsibilities (summary)
1. PaymentPay for the goods as provided in the sales
contract.
2. Licenses, Security, and Customs Formalities
Provide the seller, at the sellers request and cost, as-
sistance in securing licenses, documentation, and au-
thorizations required to import the goods.
3. Carriage and InsuranceNo obligation to the
seller for contracts of carriage or insurance.
4. Taking DeliveryTake delivery of the goods at the
named place of destination as provided in the contract.
5. Risk TransferAssume risk of loss or damage
from the time the goods have been made available at
the named place of destination, within the agreed-
upon time.
6. CostsPay any additional costs after the goods have
been made available at the named place of destination
within the agreed-upon time. Pay for costs of unload-
ing if unloading was not included in the sellers origi-
nal contract for carriage. Pay costs of onward carriage.
7. Notice to SellerIf, according to the sales contract,
the buyer is entitled to specify a time or point of tak-
World Trade Press Illustrated Guide to Incoterms 2010
ing delivery at the named place of destination, to give
seller sufficient notice.
8. Proof of DeliveryAccept the sellers delivery doc-
ument if it is in conformity with the sales contract.
9. Inspection(s)No obligation to the seller for pre-
shipment inspections required for export or import.
10. OtherTimely advise the seller of any security-re-
lated data requirements.
Reimburse the seller for sellers costs related to secur-
ing information or documentation, including security
information, that the buyer requires for transport of
the goods to the final destination.
At the sellers request and cost, timely provide the
seller with any documents and information required
for export, transport, import, and security clearance of
the goods to the named place of destination.
27
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