Incoterms 2017 EXW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAF | DES | DEQ | DDU

Incoterms (International Commercial Terms)

The international chamber of commerce first published in 1936 a set of international rules for the international rules for the interpretation of trade terms. These rules were known as Incoterms 1936. Amendments and additions were later made as  1953, 1967, 1990 and 2000 to bring the standards in line with current international trade practices.

The following are the Incoterms

1)EXW ex-works

  1. a) Carriage to be arranged by the buyer.
  2. b) Risk transfer from the seller to the buyer when the goods are at the disposal of the purchaser.
  3. c) Cost of assignment from the vendor to the buyer when the goods are at the disposal of the buyer.

 2)  FCA free carrier

  1. a) Carriage has to arranged by the buyer or either by the seller on the behalf or the buyer.
  2. b) Risk transfer from the vendor to the buyer when the goods have been delivered to the carrier at the named place.
  3. c) Cost transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place.

3) FAS free alongside ship

  1. a) Carriage to be arranged by the buyer.
  2. b) Risk transfer from the seller to the buyer when the goods have been placed alongside the ship.
  3. c) Cost transfer from the vendor to the buyer when the goods have been placed alongside the ship.

4) FOB free on board

  1. a) Carriage to be arranged by the purchaser.
  2. b) Risk transfer from the seller to the buyer when the goods pass the ship’s rail.
  3. c) Cost transfer from the vendor to the buyer when the goods have been placed alongside the ship.

5) CFR cost and freight

  1. a) Carriage and insurance have to be arranged by the seller.
  2. b) Risk transfer from the vendor to the buyer when the goods pass the ship’s rail.
  3. c) Cost transfer at the port of destination buyer, paying such fees as are not for the sellers account under the carriage contract.

 6) CIF (COST insurance and freight)

  1. a) Carriage and insurance have to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods pass the ship’s rail.
  3. c) Cost transfer at the port of destination buyer, paying such costs as are not for the sellers account under the carriage contract.

7) CPT – Carriage Paid to (duty paid)

a)carriage and insurance have to be arranged by the seller.

  1. b) Risk transfer from the seller to the buyer when the goods pass the ship’s rail.
  2. c) Cost transfer at the port of destination buyer , paying such costs as are not for the sellers account under the carriage contract.

8) CIP Carriage and Insurance paid to

  1. a) Carriage and insurance have to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods pass the ship’s rail.
  3. c) Cost transfer at the port of destination buyer, paying such costs as are not for the sellers account under the carriage contract.

9) DAF (Delivered at Frontier)

  1. a) Carriage to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods have been de;covered at the frontier.
  3. c) Cost transfer from the seller to the buyer when the goods have been delivered at the frontier.

10) DES (Delivered ex-ship)

  1. a) Carriage to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the board of the ship.
  3. c) Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the board of the ship.

11) DEQ (Delivered EX quay)

  1. A) Carriage to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the board of the ship.
  3. c) Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on board of the ship.

 12) DDU (delivered duty unpaid)

  1. a) Carriage to be arranged by the seller.
  2. b) Risk transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the board of the ship.
  3. c) Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer on the board of the ship.

Sharoz Dawa

Co-founder & Developer at IAS Paper I am a 20-year-old guy from Mumbai (Maharashtra) currently doing Software Engineering.I love helping people and providing free education. Official Website http://www.sharozdawa.comFacebook

11 thoughts on “Incoterms 2017 EXW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAF | DES | DEQ | DDU

  • September 20, 2017 at 5:46 pm
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    FOB, CIF & CIF incur those charges at origin port but not destination port. FOB only carry’s as far as origin port, whereas the latter carry as far as destination port.

    Reply
  • September 27, 2017 at 7:57 pm
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    The goods are sent and tracked by the seller but using the buyer’s FedEx account so that they are charged for freight directly by the courier rather than charged for delivery by the seller on the invoice. What incoterms does this fall under?

    Reply
  • September 28, 2017 at 8:16 pm
    Permalink

    This would be Ex-wks. if on buyers account.

    Reply
  • October 3, 2017 at 10:58 pm
    Permalink

    Dear Sir,/ Madam,
    We Need International Commercial Terms Latest Edition at Glance in one page, if possible , please provide us towards our E-mail Address as stated below.

    With the best Compliments of,

    Omar Hossain
    AGM-commercial
    Maple Packages(Pvt.) Ltd.
    Dhaka,Bangladesh,
    Cell: 0088-0176 0888 772,
    ID: [email protected]

    Reply
    • October 3, 2017 at 11:01 pm
      Permalink

      Dear Sir,/ Madam,
      We Need International Commercial Terms Latest Edition at a Glance in one page, if possible , please provide us towards our E-mail Address as stated below.
      With the best Compliments of,
      Omar Hossain
      AGM-commercial
      Maple Packages(Pvt.) Ltd.
      Dhaka,Bangladesh,
      Cell: 0088-0176 0888 772,
      ID: [email protected]

      Reply

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