INCOTERMS  2010 ICC Rules for the use of Domestic and International trade terms Entry into force: 1 January Ashit Hegde

Rules for Sea and Inland waterway transport “FAS” {Free Alongside ship (….. named port of shipment)} This means that the seller fulfills his obligations to deliver when the goods have been placed alongside the vessel on the quay at the named port of shipment. FAS term requires the seller to clear the goods for export obligation. This term can only be used for sea or inland waterway transport. “FOB {Free on Board (…. named port of shipment)} The seller clears the goods for export and places it on board the ship. This term is now intended to be used for ocean transport only. 2 Ashit Hegde

“CFR” {Cost and Freight (….. named port of destination)} Cost and Freight necessary to bring the goods to the named port of destination will be paid by the seller. Insurance cost will be borne by the buyer. “CIF” {Cost, Insurance and Freight (….. named port of destination)} Seller pays all transport and documentation charges up to arrival at named port of destination plus marine insurance for the journey. 3 Ashit Hegde

Rules for any mode or modes of Transport “EXW” {Ex-works (..... named place)} The seller will place the goods at the disposal of the buyer at seller’s own premises packed but not loaded into the carrier. Delivering the goods at the named point into the custody of the carrier fulfills seller’s obligations. All costs and risks thereafter are for the buyer to bear. “FCA” {Free Carrier (….. named place) Sellers deliver the goods to the buyer’s carrier at the named place cleared for export. If the chosen place is seller’s premises, seller is responsible for loading. 4 Ashit Hegde

“CPT” {Carriage paid to (….. named place of destination)} Seller pays freight and charges to the named destination. Includes the additional freight from port of arrival to named destination. “CIP” {Carriage and Insurance paid to (…… named place of destination)} As for CPT but with the addition that seller has to procure and pay for cargo insurance. 5 Ashit Hegde

“DAT” {Delivered at terminal (…..named terminal at port or place of destination)} DAT means that the seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at named terminal, the seller has no obligation to clear the goods for import, pay any import duty or carry out any import custom formalities. 6 Ashit Hegde

“DAP”{Delivered at place (…..named place of destination)} DAP means that the seller delivers when the goods are placed at the disposal of the buyer at the named place of destination. The seller bears all risks involved in bringing the goods to the named place. “DDP” {Delivered Duty Paid (….. named place of destination)} As for DDU but also including payment of import duty. 7 Ashit Hegde