Incoterms

Incoterms are selling terms used to define the responsibilities of cost of transportation between a shipper and consignee. A good understanding of Incoterms is critical to a successful international transaction. Incoterms are published by the International Chamber of Commerce (ICC). Some commonly used terms include:

1. “E” terms – Departure
EXW – Ex Works

2. “F” terms – Main Carriage Unpaid
FCA – Free Carrier
FAS – Free Alongside Ship
FOB -Â Free on Board

3. “C” terms – Main Carriage Paid
CFR – Cost and Freight
CIF – Cost, Insurance and Freight
CPT – Carriage Paid To
CIP – Carriage and Insurance Paid To

4. “D” terms – Arrival
DAF – Delivered At Frontier
DES – Delivered Ex Ship
DEQ – Delivered Ex Quay
DDU – Delivered Duty Unpaid
DDP – Delivered Duty Paid

*Remarks: The above incoterms to be used as guidelines only and may vary from shipment to shipment.