Brief Descriptions of Incoterms
Incoterms are 13 standardized definitions of commonly used shipping and trade terms that cover issues such as control of goods and financial responsibilities such as payment of cargo insurance and freight. Incoterms provide traders with a common set of rules outlining each party’s obligations, thus reducing misunderstandings.
A listing of the 13 Incoterms
Departure
EXW: EX Works
Main carriage not paid by seller
FCA: Free Carrier
FAS: Free Alongside Ship
FOB: Free On Board
Main carriage paid by seller
CFR: Cost and Freight
CIF: Cost, Insurance and Freight
CPT: Carriage Paid To
CIP: Carriage and Insurance Paid to
Arrival
DAF: Delivered At Frontier
DES: Delivered Ex Ship
DEQ: Delivered Ex Quay
DDU: Delivered Duty Unpaid
DDP: Delivered Duty Paid