Incoterms
INCOTERMS - is international law recognized by government agencies, law firms and merchants around the world as the most applicable in the interpretation of international trade terms. The scope of Incoterms apply to the rights and obligations of parties under a contract of sale of the supply of goods. Each term of Incoterms is an abbreviation of three letters. There are different Incoterms (2000, 2005). Their use is optional at the choice of parties to the contract.
While drafting Incoterms considerable effort to achieve the maximum possible and desirable with respect to the various expressions used throughout the thirteen terms. Thus, managed to avoid the use of different formulations to express the same meaning. In addition, whenever possible, the expressions used in the UN Convention on Contracts for the International Sale of Goods.
All conditions for ease of understanding are grouped into four categories:
1."E" - the term for the seller's minimum obligation: the seller must only deliver the goods to the buyer at the agreed place - usually in the seller's own premises
EXW. Ex Works (named place): the goods from the warehouse of the seller.
2."F" - terms require the seller to deliver the goods for carriage in accordance with the instructions of the buyer
FCA. Free Carrier (named place): the goods are delivered to the carrier of the customer.
FAS. Free Alongside Ship (specified port of loading): the goods are delivered to the ship customer.
FOB. Free On Board (specified port of loading): the goods loaded on a ship of the customer.
3."C" - terms require the seller to contract for carriage on usual terms at his own expense
CFR. Cost and Freight (named port of destination): the goods are delivered to the port of the customer (without unloading).
CIF. Cost, Insurance and Freight (named port of destination): Item is insured and delivered to the port of the customer (without unloading).
CPT. Carriage Paid To (named port of destination): the goods are delivered to the carrier customer in the specified port.
CIP. Carriage and Insurance Paid to (named port of destination): Item is insured and delivered to the carrier customer in the specified place of destination.
4."D" - responsible for the arrival of the goods at the agreed place or point of destination at the border or in the country of import
DAF. Delivered At Frontier (the position) - the goods are delivered to the border without customs clearance.
DES. Delivered Ex Ship (set port) - the goods are delivered to the vessel without clearance.
DEQ. Delivered Ex Quay (set port) - the goods are delivered to the ship and unloaded without clearance.
DDU. Delivered Duty Unpaid (named place of destination) - the goods are delivered to the customer, payment of fees to the customer.
DDP. Delivered Duty Paid (named place of destination) - the goods are delivered to the customer, purified from fees and risks.