Inco – Terms | RTC Logistics

Inco – Terms

International Commercial Terms

The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.

The INCOTERMS was first published in 1936—INCOTERMS 1936—and it is revised periodically to keep up with changes in the international trade needs. The complete definition of each term is available from the current publication—INCOTERMS 2000. The publication is available at your local Chamber of Commerce affiliated with the International Chamber of Commerce (ICC).

Many importers and exporters worldwide are accustomed to and may still use the INCOTERMS 1980, the predecessor of INCOTERMS 1990 and INCOTERMS 2000.

EXW FCA FAS FOB CFR CIF
CPT
CIP DAF DES DEQ DDU DDP

SERVICES

Ex Works Free Carrier Free Alongside Ship Free Onboard Vessel Cost & Freight Cost Insurance & Freight
Carriage Paid To
Carriage Insurance Paid To Delivered At Frontier Delivered Ex Ship Delivered Ex Quay Duty Unpaid Delivered Duty Unpaid Delivered Duty Paid
Warehouse Storage Seller Seller Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Warehouse Labor Seller Seller Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Export Packing Seller Seller Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Loading Charges Buyer Seller Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Inland Freight Buyer Buyer/
Seller*
Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Terminal Charges Buyer Buyer Seller Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Forwarder’s Fees Buyer Buyer Buyer Buyer Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Loading On Vessel Buyer Buyer Buyer Seller Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller
Seller
Seller Seller Seller Seller Seller Seller
Charges On  Arrival At Destination Buyer Buyer Buyer Buyer Buyer Buyer
Seller
Seller Buyer Buyer Seller Seller Seller
Duty, Taxes & Customs Clearance Buyer Buyer Buyer Buyer Buyer Buyer
Buyer
Buyer Buyer Buyer Buyer Buyer Seller
Delivery To Destination Buyer Buyer Buyer Buyer Buyer Buyer
Buyer
Buyer Buyer Buyer Buyer Seller Seller

Allocations of costs to buyer/seller according to Incoterms 2010

Incoterm 2010 Export customs declaration Carriage to port of export Unloading of truck in port of export Loading on vessel in port of export Carriage (Sea/Air) to port of import Insurance Unloading in port of import Loading on truck in port of import Carriage to place of destination Import customs clearance Import taxes
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CFR(CNF) Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Buyer/Seller Buyer/Seller Buyer Buyer Buyer
DAT Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller/Not including VAT/FAT


Back to Top