Saturday, February 5, 2011

Classification of the 11 Incoterms 2010 Rules


Rules for any modes of transportation are as follows:

EXW - Ex-Works
FCA - Free Carrier
CTP - Carriage Paid To
CIP - Carriage and Insurance Paid to
DAT - Delivered At Terminal
DAP - Delivered At Place
DDP - Delivered Duty Paid

Rules for Sea and Inland waterway transportation:

FAS - Free Alongside Ship
FOB - Free On Board
CFR - Cost and Freight
CIF - Cost Insurance and Freight

The definitions of each Incoterm rules are based on the following:

Ex-Works (......name place of delivery) - EXW

Carriage of goods to be arrange by the buyer. Risk is transfer from the seller to the buyer when the good are at the disposal of the buyer. The Cost is transfer from the seller to the buyer when the goods are at the disposal of the buyer.

Free Carrier (......name place of delivery) - FCA

Carriage of goods to be arranged by the buyer or by the seller on the buyer's behalf. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place. The Cost is transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place.

Carriage Paid To (......name place of destination) - CPT

Carriage of goods to be arranged by the seller. The Risk is transfer from the seller to the buyer when the goods have been delivered to the carrier. Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

Carriage and Insurance Paid to (......name place of destination) - CIP

Carriage of goods - Carriage and insurance to be arranged and paid by the seller. Risk transfer from seller to the buyer when the goods have been delivered to the carrier. Cost transfer at place of destination, the buyer paying such costs as are not for the seller's account under the contract of carriage.

Delivered At Terminal (......name place of destination) - DAT

Carriage of goods to be arranged by the seller. Risk - Seller bears all risk of loss or damages to the goods until they have been delivered to the carrier. Cost - Seller must pay all costs relating to the goods until they have been delivered.

Delivered At Place (......name place of destination) - DAP

Carriage of goods to be arranged by the seller. Risk - Seller bears all risks of loss or damages to the goods until they have been delivered to the carrier.. Costs - Seller must pay all costs relating to the goods until they have been delivered.

Delivered Duty Paid (......name place of destination) - DDP

Carriage of goods to be arranged by the seller. Risk transfer from seller to the buyer when the goods are placed at the disposal of the buyer. Cost transfer from the seller to the buyer when the goods are placed at the disposal of the buyer.

Free Alongside Ship (......name place of destination) - FAS

Carriage of goods to be arranged by the buyer. Risk transfer from the seller to the buyer when the goods have been placed alongside the ship. Cost transfer from seller to the buyer when the goods have been placed alongside the ship.

Free On Board (......name place of destination) - FOB

Carriage of goods to be arranged by the buyer. Risk transfer from the seller to the buyer when the good have been delivered by placing them on board the vessel nominated by the buyer at the loading point. Cost- Seller must pay all costs relating to the goods at the named point as above.

Cost and Freight (......name place of destination) - CFR

Carriage of goods to be arranged by the seller. Risk - seller bears all risks of loss of or damages to the goods until they have been delivered either by placing them on board the vessel or by procuring the goods so delivered. Cost - seller must pay all costs related to the goods until they have been delivered at named point as named above.

Cost Insurance and Freight (......name place of destination) - CIF

Carriage of good - carriage and insurance to be arranged and paid by the seller. Risk - seller bears all risk of loss or damages to the goods until they have been delivered either by placing them on board the vessel or by procuring the goods so delivered. Cost - seller must pay all costs relating to the goods until they have been delivered at the named point as above.