WHAT INCOTERMS ARE - International Commercial Terms also known as INCOTERMS®, are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods.

The International Chamber of Commerce (ICC) has published revisions to its International Commercial Terms, also known as INCOTERMS®.

The number of Incoterms® rules has been reduced from 13 to 11.
• DAF, DES, DEQ, and DDU designations have been eliminated
• Two new terms, DAT (Delivered at Terminal) and DAP (Delivered at Place), have been added.

WHAT INCOTERMS DO - INCOTERMS define the respective tasks, costs and risks involved in the delivery of goods, from the Seller to the Buyer.

WHAT INCOTERMS DO NOT DO - INCOTERMS by themselves DO NOT
• Constitute a contract
• Supersede the law governing the contract
• Define where title transfers
• Address the price, currency or credit terms

INCOTERMS are grouped into two classes

TERMS FOR ANY TRANSPORT MODE
EXW - EX WORKS
FCA - FREE CARRIER
CPT - CARRIAGE PAID TO
CIP - CARRIAGE & INSURANCE PAID TO
DAT - DELIVERED AT TERMINAL
DAP - DELIVERED AT PLACE
DDP - DELIVERED DUTY PAID
     

MARITIME-ONLY TERMS
FAS - FREE ALONGSIDE SHIP
FOB - FREE ON BOARD
CFR - COST AND FREIGHT
CIF - COST INSURANCE & FREIGHT

Source : International Chamber of Commerce (www.iccwbo.org)

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