Valid Incoterms-2010 effective for 2018-2019 may be found on our web-site. As against prior edition issued in the year 2000, this edition covers international and domestic trade operations. List of definitions was also amended.
Except excluded DDU (delivered, duty unpaid – delivery without customs clearance payment), DES (delivered ex ship – delivery on board at the port of destination) and DAF (delivered at frontier – delivery to the border), a new definition DAP (delivered at place – delivery/shipment at the place of destination) is introduced and definition DEQ (delivered ex quey – delivery to the port) is replaced by DAT (delivered At Terminal»).
USE OF DEFINITIONS
Each definition under Incoterms-2010 has three-letter abbreviation:
EXW, FCA, CPT, DAT, DAP, DDP, FOB, FAS, CFR, CIF.
First letter means the moment of assignment of seller’s risks and obligations to the buyer:
E«DEPARTURE» - SHIPMENT / DISPATCH (EXW)
Loading, freight and customs clearance obligations and other related expenses shall be assigned to the buyer upon shipment of goods at the manufacturer’s/seller’s warehouse.
F«MAIN CARRIAGE UNPAID» - MAIN CARRIAGE UNPAID BY THE SELLER (FCA, FAS, FOB)
The seller delivers goods to shipment terminal of a carrier engaged by the buyer and then obligations are assigned and transportation begins.
C«МAIN CARRIAGE PAID» - MAIN CARRIAGE PAID BY THE SELLER (CFR, CIF, CPT, CIP)
The seller concludes a contract and pays main carriage to goods delivery terminal where obligations are assigned.
D«ARRIVAL» - ARRIVAL / DELIVERY / FULL DELIVERY OF GOODS (DAT, DAP, DDP)
The seller bears all expenses and risks related to delivery of goods to the country/point of destination. “Door-todoor” delivery: obligations are assigned from the consignor to the buyer upon acceptance of goods at the point of destination.
EXW«EX WORKS» - EX-WAREHOUSE, EX-WORKS / FROM PLANT, WAREHOUSE
Type of delivery of a customer pick-up type when the seller assigns responsibility for the goods to the buyer at the seller’s warehouse (ex-warehouse) and the seller bears no liability for participation in loading operations and for necessary export formalities.
FCA«FREE CARRIER» - FREE / FREE CARRIER
A type of delivery when the supplier must deliver goods to the place of acceptance by main carrier (intermediate warehouse) under contract terms and conditions. It is the supplier’s responsibility to pay export duties.
CPT«CARRIAGE PAID TO..»
Type of carriage when its main part to the point of arrival (for example, marine port) is performed by the supplier who delivers goods to a contracted carrier. The buyer is responsible for customs clearance of import, insurance duties and other related expenses.
CIP«CARRIAGE AND INSURANCE PAID TO..»
Method similar to CPT when the seller delivers goods to a carrier or another buyer’s agent at a place agreed by the parties. Main difference from CPT is the seller’s obligation to execute insurance contract covering all loss or damage risks during transportation.
DAT«DELIVERED AT TERMINAL»
This delivery method supposes distribution of expenses between the seller and the buyer. The seller bears all risks related to delivery and unloading of goods at terminal in specified port or at place of destination including export duties and insurance. Unloaded goods are made available to the buyer at terminal of agreed port or at another place of destination. The buyer pays customs duties and delivery to the warehouse.
DAP«DELIVERED AT PLACE» - DELIVERY / SHIPMENT AT THE PLACE OF DESTINATION
Goods are made available to the buyer upon delivery to agreed place of destination. All delivery risks and obligations (including payment of customs duties and taxes) are borne by the supplier.
DDP«DELIVERED DUTY PAID»
Door-to-door delivery of goods by the supplier – customs expenses (duties) are paid, transportation is performed in full range necessary for import of goods and goods are unloaded at agreed place of destination
FOB«FREE ON BOARD»
The seller delivers goods to the vessel specified by the buyer in agreed port of shipment. Risk of goods loss or damage is assigned from the seller to the buyer after placement of goods on board. From now on, the byer bears all related expenses.
FAS«FREE ALONGSIDE SHIP» -FREE ALONGSIDE THE SHIP/NEAR THE SHIP
Goods are delivered by the supplier to the port/berth to the specified vessel in agreed port of dispatch. Risk of goods loss and damage and further transportation expenses are assigned to the buyer after goods were placed alongside.
CFR«COST AND FREIGHT»
The seller delivers goods to the port or ship specified in the contract. All expenses and freight necessary for delivery to agreed port of destination and obligations for conclusion of necessary contracts shall be borne by the buyer.
CIF«COST, INSURANCE AND FREIGHT»
The seller shall conclude a contract, pay freight and related expenses connected with delivery of goods to the port specified in the contract. The buyer also concludes insurance agreement covering risks of damage and full or partial loss of goods during carriage.