Incoterms for importers

Resources · 2020-02-01

From the Empowery archive (2018–2022). The co-op chapter closed; the operating ideas still hold. Independent. Together.

TheIncotermsorInternational Commercial Termsare a series of pre-defined commercial terms published by theInternational Chamber of Commerce(ICC) relating tointernational commercial law. They are widely used in internationalcommercial transactionsorprocurementprocesses and their use is encouraged by trade councils, courts and international lawyers.[[1]](https://en.wikipedia.org/wiki/Incoterms#cite_note-auto-1)A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, governcontract lawor define where title to goods transfers.

Group 1. Incoterms that apply to any mode of transport are:

• EXW Ex Works
• FCA Free Carrier
• CPT Carriage Paid To
• CIP Carriage and Insurance Paid To
• DAT Delivered at Terminal
• DAP Delivered at Place
• DDP Delivered Duty Paid

Group 2. Incoterms that apply to sea and inland waterway transport only:

• FAS Free Alongside Ship
• FOB Free on Board
• CFR Cost and Freight
• CIF Cost, Insurance, and Freight
• View Incoterms 2010 with Definitions