Incoterms

The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade.

This is a brief list of the current Incoterms (2000)

• EXW EX-Works …named place.


• FCA Free CArrier …named place


• FAS Free Alongside Ship …named port of shipment


• FOB Free On Board …named port of shipment


• CFR Cost and FReight …named port of destination


• CIF Cost, Insurance and Freight …named port of destination


• CPT Carriage Paid To …named place of destination


• CIP Carriage and Insurance Paid to …named place of destination


• DAF Delivered At Frontier …named place


• DES Delivered Ex Ship …named port of destination


• DEQ Delivered Ex Quay …named port of destination


• DDU Delivered Duty Unpaid …named place of destination


• DDP Delivered Duty Paid …named place of destination

Download a handy chart noting the division of responsibilities between buyer and seller for each Incoterm HERE

Suggested reading for more information …

Incoterms 2000, ICC Official Rules for the Interpretation of Trade Terms www.iccbooksusa.com

Incoterms for Americans by Frank Reynolds
http://www.iccbooksusa.com/index.cfm?fid=50&bookid=44