INCOTERMS

Logistics Management

INCOTERMS

Definition

Incoterms 2000

Incoterms 2010

Incoterms 2020

INCOTERMS

INternational
COmmercial

TERMS

INCOTERMS

1
 INCOTERMS

INCOTERMS: are a series of pre-defined

commercial terms published by the
International Chamber of Commerce (ICC)
every 10 years that are widely used in
International commercial transactions or
Procurement processes.

INCOTERMS INCOTERMS: are a series of pre-defined commercial terms

published by the International Chamber of Commerce (ICC)
every 10 years that are widely used in International
commercial transactions or Procurement processes.

INCOTERMS

A series of three-letter trade terms related

to common contractual sales practices, the
Incoterms rules are intended primarily to
clearly communicate the tasks, costs, and
risks associated with the transportation and
delivery of goods.

Group E Group F
•EXW •FOB
•FCA
•FAS

INCOTERMS

Group C Group D
•CIF •DPU
•CFR •DAP
•CPT •DDP
•CIP

2
 INCOTERMS

Definition

Incoterms 2000

Incoterms 2010

Incoterms 2020

INCOTERMS

Group E Group F
• EXW • FOB
• FCA
• FAS

INCOTERMS
2000

Group C Group D
• CIF • DES
• CFR • DEQ
• CPT • DAF
• CIP • DDU
• DDP

INCOTERMS

3
 INCOTERMS

Definition

Incoterms 2000

Incoterms 2010

Incoterms 2020

10

INCOTERMS

Group E Group F
• EXW • FOB
• FCA
• FAS

INCOTERMS
2010

Group C Group D
• CIF • DAT
• CFR • DAP
• CPT • DDP
• CIP

11

INCOTERMS

12

4
 INCOTERMS

Definition

Incoterms 2000

Incoterms 2010

Incoterms 2020

13

INCOTERMS

Group E Group F
• EXW • FOB
• FCA
• FAS

INCOTERMS
2020

Group C Group D
• CIF • DPU
• CFR • DAP
• CPT • DDP
• CIP

14

INCOTERMS

15

5
 INCOTERMS

EXW – Ex-Works or Ex-Warehouse

• Ex works is when the seller places the goods at the

disposal of the buyer at the seller’s premises or at another
named place (i.e., works, factory, warehouse, etc.).

• The seller does not need to load the goods on any

collecting vehicle. Nor does it need to clear them for export,
where such clearance is applicable.

16

INCOTERMS

FCA – Free Carrier

• The seller delivers the goods to the carrier or another

person nominated by the buyer at the seller’s premises or
another named place.

• The parties are well advised to specify as explicitly as

possible the point within the named place of delivery, as
the risk passes to the buyer at that point.

17

INCOTERMS

FAS – Free Alongside Ship

• The seller delivers when the goods are placed alongside

the vessel (e.g., on a quay or a barge) nominated by the
buyer at the named port of shipment.

• The risk of loss of or damage to the goods passes when

the products are alongside the ship. The buyer bears all
costs from that moment onwards.

18

6
 INCOTERMS

FOB – Free On Board

• The seller delivers the goods on board the vessel

nominated by the buyer at the named port of
shipment or procures the goods already so
delivered.

• The risk of loss of or damage to the goods

passes when the products are on board the
vessel. The buyer bears all costs from that
moment onwards.

19

INCOTERMS

CFR – Cost and Freight

• The seller delivers the goods on board the vessel

or procures the goods already so delivered.

• The risk of loss of or damage to the goods

passes when the products are on board the
vessel.

• The seller must contract for and pay the costs

and freight necessary to bring the goods to the
named port of destination.

20

INCOTERMS

CIF – Cost, Insurance and Freight

• The seller delivers the goods on board the vessel or procures the
goods already so delivered. The risk of loss of or damage to the
goods passes when the products are on the ship.

• The seller must contract for and pay the costs and freight
necessary to bring the goods to the named port of destination.

• The seller also contracts for insurance cover against the buyer’s
risk of loss of or damage to the goods during the carriage.

• The buyer should note that under CIF the seller is required to
obtain insurance only on minimum cover. Should the buyer wish
to have more insurance protection, it will need either to agree as
much expressly with the seller or to make its own extra insurance
arrangements.

21

7
 INCOTERMS

CPT – Carriage Paid To

• The seller delivers the goods to the carrier or another person

nominated by the seller at an agreed place (if any such site is
agreed between parties).

• The seller must contract for and pay the costs of carriage
necessary to bring the goods to the named place of destination.

22

INCOTERMS

CIP – Carriage And Insurance Paid To

• The seller has the same responsibilities as CPT, but they also
contract for insurance cover against the buyer’s risk of loss of or
damage to the goods during the carriage.

• The buyer should note that under CIP the seller is required to
obtain insurance only on minimum cover. Should the buyer wish
to have more insurance protection, it will need either to agree as
much expressly with the seller or to make its own extra insurance
arrangements.

23

INCOTERMS

DAP – Delivered At Place

• The seller delivers when the goods are placed at the disposal of
the buyer on the arriving means of transport ready for unloading
at the named place of destination.

• The seller bears all risks involved in bringing the goods to the
named place

24

8
 INCOTERMS

DPU – Delivered At Place Unloaded (replaces Incoterm® 2010 DAT)

• DPU replaces the former Incoterm® DAT (Delivered At Terminal).

The seller delivers when the goods, once unloaded are placed at
the disposal of the buyer at a named place of destination.

• The seller bears all risks involved in bringing the goods to, and
unloading them at the named place of destination.

25

INCOTERMS

DDP – Delivered Duty Paid

• The seller delivers the goods when the goods are placed at the
disposal of the buyer, cleared for import on the arriving means of
transport ready for unloading at the named place of destination.

• The seller bears all the costs and risks involved in bringing the
goods to the place of destination. They must clear the products
not only for export but also for import, to pay any duty for both
export and import and to carry out all customs formalities.

26

INCOTERMS

•EXW Mex-World Trade Insurgentes Sur 4091, Mexico, Mexico City

•FCA Alf wagon, Mexico, Mexico City

•FAS ss Star, Montreal Quebec

•FOB ss Star, Montreal Quebec

27

9
 INCOTERMS

•CFR Rotterdam, Holland

•CIF Rotterdam, Holland

•CPT Limburg, Holland

•CIP Callao, Peru

•DDP ABC Co. Cologne, Germany

•DPU Dock 123 Rotterdam, Germany

•DAP 2-285 Collison Avenue, Peterborough Ontario Canada

28

INCOTERMS

29

10