Michaela Merz

Incoterms

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Incoterms are international conditions of sale published by the International Chamber of Commerce (ICC) first published in 1936. They are periodically updated, with the eighth version— Incoterms® having been published on January 1, 2011. Their purpose is to provide “universal” rules to define the seller’s and buyer’s obligations during a commercial transaction and to reduce or eliminate uncertainties arising from different interpretation of the rules in different countries. Incoterms rules are intended to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods and they are accepted by governments, legal authorities, and practitioners worldwide.

There are four different groups

 

E F C D
EXW
ex works
FCA
free carrierFAS
free alongside shipFOB
free on board
CFR
cost and freightCIF
cost, insurance, freightCPT
carriage paid toCIP
carriage and insurance paid
DAP delivered at placeDAT delivered at terminalDDP delivered duty paid

Allocations of costs to buyer/seller according to Incoterms 2010

Incoterms I

 

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