INCOTERMS

Incoterms (International Rules for Interpretation of Commercial Trade Terms) are international terms used to interpret typical contractual formulas used in international trade and transportation. Created by the International Chamber of Commerce (ICC), the terms consist of standard trade definitions (Standard Trade Definitions), and establish the obligations of the purchasing and selling of goods between: the seller/exporter and the buyer/importer.


EXW - EX WORKS: the seller minimizes his risk by making the goods available on his own premises.

FCA – FREE CARRIER: unless otherwise agreed, the seller will arrange and pay for any prior transport to the point of delivery

CPT – CARRIAGE PAID TO: the seller will contract the main transportation up to the designated place or destination.

CIP – CARRIAGE & INSURANCE PAID TO: in addition to the obligations associated to the CPT condition, the seller will also contract insurance to designated places or points of destination.

DAT – DELIVERED AT TERMINAL: the seller will place the goods at the disposal of the buyer, unloaded from the means of transport, at the agreed place or point of destination.

DAP – DELIVERED AT PLACE: the seller will place the goods at the disposal of the buyer, ready to be unloaded by the buyer, at the agreed place or point of destination.

DDP – DELIVERY DUTY PAID: the seller will place the goods at the disposal of the buyer, ready to be unloaded by the buyer at the agreed place or point of destination, and clear the goods for importation by paying duties and other official charges (unless otherwise agreed).

FAS – FREE ALONGSIDE SHIP: the seller will place the goods on the side of the vessel designated by the buyer.

FOB – FREE ON BOARD: the seller will place the goods on board of the vessel designated by the buyer.

CFR – COST AND FREIGHT: the seller will arrange and pay for the transport freight up to the designated port of destination.

CIF – COST, INSURANCE AND FREIGHT: in addition to obligations related to the CFS condition, the seller will also contract insurance up to the designated port of destination.

  EXW FCA CPT CIP DAT DAP DDP FAS FOB CFR CIF
Inland freight                      
Storage and workmanship at the origin                      
Expenses with packaging for export and loading                      
Broker expanses at the origin                      
Customs duties at the origin                      
Terminal charges and loading at the origin                      
Freight port to port                      
Destination Terminal Charges                      
Broker expanses at the destination                      
Customs Clearance Fee at the destination                      
Charges and duties                      
Delivery to the consignee                      

  Consignee      Shipping company