INCOTERMS

INCOTERMS( IN ternational CO mmercial Terms)

What are  Incoterms?
Incoterms are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade. They either reduce or remove altogether uncertainties arising from differing interpretations of such terms in different countries.

What do they cover?
The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold, but excluding "intangibles" like computer software.

Why do Incoterms need revising periodically?
As the guardian and originator of Incoterms, ICC has a responsibility to consult regularly all parties interested in international trade to keep Incoterms relevant, efficient and up-to-date. It is also translated into 31 laguages. This is a long and costly process for ICC, which is a non-governmental, self-financed organization. The work is financed out of sales of Incoterms 2000 and related publications, which are protected by copyright.

What are the 13 Incoterms?
Each Incoterm is referred to by a three-letter abbreviation. Here is a complete list, with the meanings spelled out.

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)