Incoterm

The Incoterms ( International Commercial Term ) are commercial terms, published in particular by the international Chamber of commerce in Paris.

Often shortened in Initials S of three letters, these terms define the responsibilities and the obligations of a salesman and a purchaser within the framework of international contracts of trade, in particular in glance of the loading, transport, the type of transport, the insurances and the delivery. It is thus here about a distribution of the transport costs, first function of the incoterms. The second role of the incoterms is to define the place of transfer of the risks, i.e. which of the salesman or the purchaser will have to support the damage in the event of bad execution of transport.

It is about an updated standard regularly and which allows the purchaser and the salesman to agree quickly and without ambiguity on the methods of the transaction.

Incoterms 2000 normalizes

This standard defines 13 Incoterms (delivery terms), which can be consultable on the specialized site of Interex assistance

Group E - Departure

EXW: Ex Works, with the departure noncharged, not cleared through customs/left factory (not adapted to the modern flows of end products)

Group F - Hand Carriage Unpaid

FCA: Free Carrier, charged " with the départ" or conveyed with " such lieu" in the starting country (all transport)
FAS: Free Alongside Ship, on the quay of the wearing of departure
FOB: Free One Board, charged on the boat except liner terms " quai" , with the wearing of departure

Group C - Hand Carriage Paid

CFR: Cost and Freight, charged on the boat, delivery with the wearing of departure, expenses paid with the port of arrival, without insurance for the transport, not discharged from the ship with destination except liner terms " quai"
CIF: Cost, Insurance and Freight, charged on the boat, expenses with the port of arrival, with the transported insurance goods subscribed by the salesman on behalf of the purchaser
CPT: Carriage Paid To, delivery with the first conveyer, expenses until the unloading of the means of transport, without insurance for transport
CIP: Carriage and Insurance Paid to, until the unloading of the means of transport, with transported insurance goods subscribed by the salesman on behalf of the purchaser

Group D - Arrival

DAF: Delivered At Frontier, at the indicated border, the point border indicated; terrestrial exclusively
OF: Delivered Ex Ship, in the boat with the port of arrival
DEQ: Delivered Ex Quay, discharged on the quay from the port of arrival
DDU: Delivered Duty Unpaid, with final destination but without the taking out of bond importation
DDP: Delivered Duty Paid, with final destination, taking out of bond importation carried out (if exclusion of the taxes, to specify it)

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