INCOTERMS are a set of international commercial terms published by the International Chamber of Commerce that are widely used in international commercial transactions. The current version is INCOTERMS 2010, which defines 11 rules separated into two groups - rules for any mode of transport and rules for sea and inland waterway transport. The rules clarify the obligations and costs involved in delivery of goods from the seller to the buyer.

1. INCOTERMS
www.iccwbo.org

2. INCOTERMS- www.iccwbo.org
• Known as International commercial term- INCOTERMS
developed by International Chambers of commerce-
ICC, Paris in 1936.
• INCOTERMS 2010 is current version effective from
January 1, 2011.
• Earlier version INCOTERMS 2000 could also be used.
• Define cost risk and obligations of two parties.
• Inco terms apply if mentioned in contract or LC

3. Classification of the 11 Incoterms® 2010
rules are presented in two distinct classes
• RULES FOR ANY • RULES FOR SEA AND
MODE OF TRANSPORT INLAND WATERWAY
• EXW TRANSPORT
• FCA • FAS
• CPT • FOB
• CIP • CFR
• DAT • CIF
• DAP
• DDP

4. INCOTERMS- www.iccwbo.org
• Pre carriage mean transportation up to
vessel/port/Border
• Main carriage mean sea freight/foreign freight

5. INCOTERMS- www.iccwbo.org
• Under F terms- pre carriage paid by seller and
main carriage by buyer
• Under C terms pre carriage and main carriage
paid by seller but seller risk limited till delivery to
main carrier
• Under D terms all risk and expenditure up to
destination are in seller a/c

6. Terms of delivery in 2000 and 2010
rules
• EXW (Ex Works) name of city specified, without
loading and clearing
• FCA (Free Carriers) named place- cleared for
export, loaded on carrier,
• FAS (Free Alongside Ship) named port of,
cleared, inland freight paid
• FOB (Free on Board) named port of shipment,
goods loaded on vessel

7. Terms of delivery in 2000 and 2010
rules
• CFR (Cost and Freight) also C&f, named port of
destination - FOB + sea freight upto destination
port
• CPT (carriage Paid To) named place of
destination like CFR any mode
• CIF (cost, Insurance, and Freight) named port of
destination- CFR plus insurance by sea
• CIP (Carriage and Insurance Paid to) named
place of destination same as CIF by all modes,
air, post

8. D terms in 2000 and 2010 rules
• Inco terms 2000 rules- • Inco terms 2010
• DAF (Delivered at • DAT DELIVERED
Frontier) named land AT TERMINAL
border,
• DES (Delivered Ex Ship) • DAP DELIVERED
named port of destination AT PLACE
• DEQ (Delivered Quay) • DDP DELIVERED
named port of DUTY PAID
destination- DES plus
discharging,
• DDU (Delivered Duty
Unpaid) named place of
destinationduty unpaid
• DDP (Delivered Duty
Paid) named place of
destination-