Incoterms® 2010

Explanation Incoterms

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CFR

Cost and Freight (agreed port of destination), maritime condition. The transfer of costs will occur after placing the goods on board of the ship in the port of departure or after the goods are loaded. The transfer of risks also takes place at that time, in other words, the critical point of costs is equal to the critical point of risk transfer, just like FOB. The ship's rail, traditionally a symbolic barrier between the seller and buyer, has been abolished. The seller has fulfilled his obligation to deliver when the goods are placed / loaded on board of the (by the seller) nominated and named vessel at the port of departure. (source: Incoterms 2010)

CIF

Cost and Freight (agreed port of destination), maritime condition. The transfer of costs will occur after placing the goods on board of the ship in the port of departure or after the goods are loaded. The transfer of risks also takes place at that time, in other words, the critical point of costs is equal to the critical point of risk transfer, just like FOB. The seller has fulfilled his obligation to deliver when the goods are placed / loaded on board of the (by the seller) nominated and named vessel at the port of departure. This is also equal to FOB and CFR. The insured value of goods is normally 110% of invoice value.(source: Incoterms 2010)

CIP

Carriage and Insurance Paid to (agreed place of destination), non-maritime condition. The transfer of costs occurs when the goods have been delivered to the agreed destination. The transfer of risk occurs at the time that the goods are offered for carriage to put in the care of the (first) carrier as in FCA and CPT. The seller has fulfilled his obligation to deliver when the goods are under the custody of the (first) carrier that was nominated and named by the seller. This means for FCL usually when the goods are loaded in the outgoing means of transport in the factory or in the field of the seller. For an LCL is this usually the moment that the seller has delivered the goods at the designated consolidation warehouse. The insured value of goods is normally 110% of invoice value. (source: Incoterms 2010)

CPT

Carriage Paid To (agreed place of destination), non-maritime condition. The transfer of costs occurs when the goods have been delivered to the agreed destination. The transfer of risk already occurs at the time that the goods are offered for carriage to put in the care of the (first) carrier as in FCA. With FCL, this usually means the plant or on the property of the seller after loading and with LCL usually after delivery of the goods to the carrier nominated by the seller itself. The seller has fulfilled his obligation to deliver when the goods are under the custody of the carrier that was nominated and named by the seller. This means for FCL usually when the goods are loaded in the outgoing means of transport in the factory or in the field of the seller. For an LCL is this usually the moment that the seller has delivered the goods at the designated consolidation warehouse. (source: Incoterms 2010)  

DAP

Delivered at Place (agreed place of destination), non-maritime condition. The transfer of costs and risk occurs when the goods are not cleared and unloaded from the arriving means of transport, and available to the buyer at the agreed place of destination. The seller has fulfilled his obligation to deliver as soon as the goods are not cleared and unloaded from the arriving means of transport, are available at the agreed place of destination. DAP replaces the conditions DAF, DES and DDU. (source: Incoterms 2010)  

DAT

Delivered at Terminal, applies for any mode of transport. The vendor delivers in the agreed terminal in said port or place of destination. The seller takes all risks till delivery into the terminal en is responsilble for unloading the goods and export Custom Clearance. The consignee is responsible for Custom Clearance at imports. Terminal: every place such as the wharf, warehouse, container-, road-, rail- or air terminal. 

DDP

Delivery Duty Paid (agreed place of destination), non-maritime condition. The transfer of costs and risk takes place after the goods custom cleared and duties paid, but not discharged, made'available to the buyer at the named place of destination. The seller has fulfilled his obligation to deliver when the goods are custom cleared and import taxes are paid, not unloaded at the disposal of the buyer at the named place of destination. (source: Incoterms 2010)  

EXW

Ex Works (agreed place of loading), both maritime as non-maritime condition. When the goods are loaded on the transport unit of the buyer, the transfer of costs and risk is prior to the loading. The seller has fulfilled his obligation to deliver as soon as the goods are export worthy packed with marks and numbers and ready for sending, at the agreed place and the seller has informed the buyer accordingly. (source: Incoterms 2010)

FAS

Free Along Side Ship (agreed port of departure), maritime condition. The transfer off costs and risk occur at the time the goods are delivered alongside the vessel that is nominated by the buyer, so before loading. The seller has fulfilled his obligation at the moment that he delivers the goods alongside the (by the purchaser) nominated and named vessel in the port of departure. Alongside i.e. alongside the waterfront, such as a barge or alongside on the tray of the shipping port by truck.(source: Incoterms 2010)  

FCA

Free Carrier (FCA). The seller arranges goods with invoice, packaging, export licence, customs formalities when exporting and costs up to delivery of the goods to the carrier (the transport company), as stipulated by the buyer and in accordance with the mode of transport. The seller delivers the cleared goods and transfers them to the carrier appointed by the buyer, in the location or place agreed on. If no exact place has been agreed on, the seller may select where within the stipulated location or area liability is transferred.

FOB

Free on Board (agreed port of departure), maritime condition. The transfer off costs will occur after placing the goods on board of the ship in the port of departure or after the goods are loaded. The transfer of risks also takes place at that time, in other words, the critical point of costs is equal to the critical point of risk transfer. The ship's rail, traditionally a symbolic barrier between the seller and buyer, has been abolished. The seller has fulfilled his obligation to deliver when the goods are placed / loaded on board of the (by the buyer) nominated and named vessel at the port of departure. (source: Incoterms 2010)

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