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-