Incoterms are the standard international trade agreements regarding the transport of goods. The contract stipulates standard agreements that divide the costs and risks between the seller and the buyer.
From 2011 onwards, the Incoterms 2010 apply.
You can agree to the following matters by means of an incoterm:
- Who is responsible for transport insurances, licenses, authorisations and other formalities?
- Who provides the transport and up to where?
- When will the risks and costs of the delivery transfer from the seller to the buyer?
There are 11 incoterms: 4 are intended specifically for transport by water. The other 7 apply to all kinds of transport (multimodal transport).
- FAS – Free Alongside Ship
- FOB – Free on Board
- CFR – Cost and Freight
- CIF – Cost, Insurance and Freight
Incoterms multimodal transport:
- 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