Incoterms are trade terms published by the International Chamber of Commerce (ICC) that are commonly used in both international and domestic trade contracts. Incoterms are used to make international trade easier by helping traders who are in different countries to understand one another. Following you will find the explanation of incoterms abbreviation which we are using in our corresponding emails with customer or supplier.
EXW (‘Ex Works’) :We make the goods available to be collected at their premises and the buyer is responsible for all other risks, transportation costs, taxes and duties from that point onwards.
FOB (‘Free on Board’) :The seller must get the goods ready for export and load them onto the specified ship. The buyer and seller share the costs and risks when the goods are on board. This term is not used for goods transported in containers by more than one mode of transport (FCA is usually used for this).
FCA (‘Free Carrier’): we give the goods, cleared for export, to the buyer’s carrier at a specified place. The buyer is then responsible for getting transported to the specified place of final delivery. This term is commonly used for containers travelling by more than one mode of transport.
CPT (‘Carriage Paid to’): We pay to transport to deliver goods at specified destination. Responsibility for the goods transfers to the buyer when we pass them to the first carrier.
CIP (‘Carriage and Insurance Paid’): We pay for insurance as well as transport to the specified destination. Responsibility for the goods transfers to the buyer when the we pass them to the first carrier.
DAT (‘Delivered at Terminal’): We pay for transport to a specified terminal at the agreed destination. The buyer is responsible for the cost of importing the goods. The buyer takes responsibility once the goods are unloaded at the terminal.
DAP (‘Delivered at Place’): We pay for transport to the specified destination, but the buyer pays the cost of importing the goods. The seller takes responsibility for the goods until they’re ready to be unloaded by the buyer.
DDP/DTP (‘Delivered Duty Paid’): The seller is responsible for delivering the goods to the named destination in the buyer’s country, including all costs involved.
FAS (‘Free Alongside Ship’): The seller puts the goods alongside the ship at the specified port they’re going to be shipped from. The seller must get the goods ready for export, but the buyer is responsible for the cost and risk involved in loading them.
CFR (‘Cost and Freight’): The seller must pay the costs of bringing the goods to the specified port. The buyer is responsible for risks when the goods are loaded onto the ship.
CIF (‘Cost, Insurance and Freight’): The seller must pay the costs of bringing the goods to the specified port. They also pay for insurance. The buyer is responsible for risks when the goods are loaded onto the ship.