Incoterms 2010

Incoterms (rules) is the abbraviation of three terms from the terminology in the sphere of trade connected with the entrepreneur practice in agreements of international sale and purchase of goods. Mostly, the Incoterms rules specify duties, costs and risks associated with the delivery of goods from sallers (vendors) to customers.

A selected term of Incoterms should reflect a type of commodity, a way of its transportation and, moreover, to reflect, to what extend the parties intend to bear additional obligations, for example, an obligation of a seller or a bayer on arranging transportation or insurance. Explanations to every term contain information useful for making the option. Whichever term would be selected, the parties should take into account that interpretation of their agreement may be effected by traditional practice of handling in ports or other points on the route.

The selected term of Incoterms may work only if the parties identified the port or the other point as accurately as possible.

Оbligations of a vendor and a customer during the delivery of goods

Оbligations EXW
F.o.b. plant (... name of the place)
CFR
Сost and freight (…name of the destination port)
CIF
Сost, insurance and freight (…name of the destination port)
CIP
Freight/forwarding and insurance are paid to (…name of the destination point)
CPT
Freight/forwarding are paid to (…name of the destination point)
DAT
Supply at terminal (…name of the terminal)
DAP
Supply at the point (…name of the point)
DDP
Supply with payment of duties (…name of the destination point)
Vendor
Customer
Supply of goods in accordance with the sale and purchase contract
Payment for the cost of goods in accordance with the sale and purchase contract
Licenses, сertificates and formalities At exporting At exporting At exporting At exporting At exporting At exporting At exporting
At importing At importing At importing At importing At importing At importing At importing
Contracts on carriage and insurance Contract on carriage Contract on carriage Contract on carriage Contract on carriage
Supply To load on a shipboard To load on a shipboard Тo provide goods to a carrier of cargos Тo provide goods to a carrier of cargos То upload goods from the transport and to supply То supply goods ready to loading Тo provide goods unshipped
Acceptance of the supply
Transition of risks (risks of loss or damage) Up to the moment of supply Up to the moment of transition of goods through the ship’s rails in the port of shipment Up to the moment of transition of goods through the ship’s rails in the port of shipment Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply
From the moment of acceptance of the supply From the moment of transition of goods through the ship’s rails in the port of shipment From the moment of transition of goods through the ship’s rails in the port of shipment From the moment of acceptance of supply From the moment of acceptance of supply From the moment of acceptance of supply From the moment of acceptance of supply From the moment of acceptance of supply
Distribution of the costs associated with the goods Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply Up to the moment of supply
From the moment of acceptance of supply From the moment of supply From the moment of supply From the moment of supply From the moment of supply From the moment of supply From the moment of supply From the moment of supply
Notification on date and place, when and where Тhe goods are provided Тhe goods are provided Тhe goods are provided Тhe goods are provided Тhe goods are provided Тhe goods are provided Тhe goods are provided Тhe goods are sent
Тhe goods are accepted Date of shipment, port of destination Date of shipment, port of destination Date of consignment, point of destination Date of consignment, point of destination Date of consignment, point of destination Date of consignment, point of destination Time and point of acceptance
Evidences of delivery, transport documents or equal electronic messages To provide a transport document To provide a transport document To provide a transport document To provide a transport document To provide a transport document To provide a transport document To provide a delivery order, a transport document
To accept a delivery order, a transport document To accept a transport document To accept a transport document To accept a transport document To accept a transport document To accept a transport document To accept a transport document
Checking — Packing — Labeling
Inspection of goods
Other obligations

Оbligations of vendor and customer during the delivery of goods

Оbligations FCA
Free carrier
(…name of the place)
FAS
Free alongside ship
(…name of the shipment port)
FOB
Free on board (F.O.B.)
(…name of the shipment port)
Vendor
Customer
Supply of goods in accordance with the sale and purchase contract
Payment for the cost of goods in accordance with the sale and purchase contract
Licenses, сertificates and formalities At exporting At exporting At exporting
At importing At importing At importing
Contracts of carriage and insurance Contract of carriage Contracts of carriage Contracts of carriage
Supply Tо supply the goods alongside the ship To load on the shipboard
Acceptance of the supply
Transition of risks (risks of loss or demage) Up to the moment of supply Up to the moment of supply Up to the moment of transition of goods through ship’s rails
From the moment of supply From the moment of supply From the moment of transition of goods through ship’s rails
Distribution of the costs associated with the goods Up to the moment of supply Up to the moment of supply alongside the ship Up to the moment of transition of goods through ship’s rails
From the moment of supply From the moment of supply alongside the ship From the moment of transition of goods through ship’s rails
Notification on the date and place, when and where About a supply Тhe goods are putted alongside the ship About a supply
About a cargo carrier, a way of transportation and a point of transfer of goods to the carrier About the name of the ship, a point at the place of loading and time of shipping About the name of the ship, a point at the place of loading and time of shipping
Evidences of the delivery, transport documents or equal electronic messages To provide a transport document To provide a transport document To provide a transport document
To accept a transport document To accept a transport document To accept a transport document
Checking — Packing — Labeling
Inspection of goods
Other obligations