The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, Ex works,CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.
13 Terms :
- EXW – Ex Works (named place)
- FCA – Free Carrier (named place)
- FAS – Free Alongside Ship (named place)
- 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)
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