INCOTERMS 2010

TERMS DETAILS
- (named place of delivery)
- seller makes the goods available at its premises
- used when making an initial quotation for the sale of goods w/o any cost included
EXW - buyer pays all transportation cost & bears the risks for bringing the goods to final
Ex Works destination
- MAXIMUM obligation of the BUYER
- MINIMUM obligation of the SELLER
(MULTIMODAL) - seller doesn’t load the goods on vehicles & doesn’t clear for export
FORMULA: EXW = FOB – O/C (SEA)
EXW = FCA – O/C (AIR)

- (named place of delivery)

FCA - seller hands over the goods, cleared for export into the disposal of the first carrier
Free Carrier (named by buyer) at the named place
- seller pays for carriage to the named point of delivery
- risk is passes when the goods are handed to the first carrier
(MULTIMODAL) FORMULA: FCA = EXW + O/C (SEA/AIR)

- (named place of destination)

CPT - seller delivers the goods to the carrier at an agreed place of delivery
Carriage Paid To - seller pays the transport of delivery
- risk is transferred at the place of delivery
(MULTIMODAL) FORMULA: CPT = EXW + O/C (SEA/AIR)

- (named place of destination)

CIP - the containerized transport equivalent of CIF
Carriage & - seller pays for carriage and insurance to the destination point
- risk is transferred at the place of delivery
Insurance Paid To
FORMULA: CIP = FOB + INS +FRT (SEA)
(MULTIMODAL) CIP = FCA + INS +FRT (AIR)

- (named terminal at port or place of destination)

DAT - seller delivers the goods unloaded to the terminal
Delivered At - seller pays the carriage to the terminal, except the cost related to import clearance
Terminal - risk is transferred as soon as the goods are unloaded at the terminal
FORMULA: DAT = FOB + FRT + O/C (SEA)
DAT = FCA + FRT + O/C (AIR)
(MULTIMODAL)

- (named place of destination)

DAP - seller delivers the goods to the disposal of the buyer
- seller pays the carriage to the terminal, except the cost related to import clearance
Delivered At Place - seller assumes the risk prior to the point when goods are ready for unloading by the
buyer
(MULTIMODAL) FORMULA: DAP = FOB + FRT + O/C (SEA)
DAP = FCA + FRT +O/C (AIR)
Prepared By: Archer Sagang
 - (named place of destination)
- seller is responsible for bringing the goods to the destination, paying any duties &
taxes and all cost bringing the goods to destination
DDP - buyer is responsible for unloading
Delivered Duty Paid - risk is transferred as soon as the buyer has the access to the goods ready for
unloading
- MAXIMUM obligation of the SELLER
(MULTIMODAL) - MINIMUM obligation of the BUYER
FORMULA: DDP = FOB + FRT + O/C (SEA)
DDP = FCA + FRT + O/C (AIR)

NOTE: DAT, DAP, and DDP do not include INSURANCE

Their “O/C” is the expenses incurred in the country of destination.

- (named place of shipment)

FAS - seller clears the goods for export and deliver and placed alongside the ship
Free Alongside Ship - buyer assumes all risk from this point forward
(UNIMODAL) - this term typically used for heavy-lift or bulk cargo
(SEA ONLY) FORMULA: FAS = EXW + O/C

- named port of shipment

FOB - seller is responsible for delivery of the goods loaded at the ship
Free On Board - cost & risk are divided when the goods are actually on board the vessel
- seller clears the goods for export
- buyer instruct the seller the details of the vessel and the port where the goods to be
(UNIMODAL) loaded
(SEA ONLY) FORMULA: FOB = EXW + O/C

- named port of destination

CFR - seller pay the cost & freight to bring the goods to the port of destination
Cost and Freight - risk is transferred to the buyer once the goods are loaded on the vessel at the port
of shipment
- Insurance for the goods in not included
(UNIMODAL) - the term is formerly known as CNF (C&F)
(SEA ONLY) FORMULA: CFR = FOB + FRT

- named port of destination

CIF - the same as CFR except that the seller covers insurance to named port of
Cost, Insurance & destination
Freight - Buyer is responsible for all costs associated with unloading the goods at the named
port of destination and clearing goods for import
- Risk passes from seller to buyer once the goods are onboard the vessel at the port of
(UNIMODAL) shipment.
(SEA ONLY) FORMULA: CIF = FOB + INS + FRT
Prepared By: Archer Sagang

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LOADING DESTINATION

EXW GROUP “C”

GROUP “F” GROUP “D”