Inco Terms

What’s the Scope of Inco terms 2000?

Inco terms “… defines the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold.”

Four Inco Term Groups

Group E – Departure

(1) EXW – EX Works
(a) Seller delivers when he places goods at the disposal of the buyer at the seller’s named premises or another named place
(b) Suitable for all Modes of Transport

Group F - Main Carriage Unpaid
(1) FCA - Free Carrier
(a) Seller delivers goods cleared for export to the carrier nominated by the buyer at the named place
(b) For all modes of transportation

(2) FAS - Free Alongside Ship
(a) Seller delivers when goods are placed alongside the vessel at the named port of shipment
(b) Maritime shipments only

(3) FOB - Free on Board
(a) Seller delivers when goods pass the ship’s rail at the named port of shipment
(b) Maritime shipments only

Group C - Main Carriage Paid
(1) CFR - Cost and Freight
(a) Seller pays costs and freight to deliver goods to the named port of destination
(b) Maritime shipments only

(2) CIF - Cost, Insurance & Freight
(a) Seller pays costs, insurance and freight to deliver goods to the named port of destination
(b) Maritime shipments only

(3) CPT - Carriage Paid to
(a) Seller delivers goods to the carrier nominated by him/her but also pays carriage to named destination.
(b) All modes of transport

(4) CIP - Carriage & Insurance Paid to
(a) Seller delivers goods to the carrier nominated by him/her but also pays carriage and insurance to named destination.
(b) All modes of transport

Group D - Arrival
(1) DAF - Delivered at Frontier
(a) Seller delivers when goods are placed for buyer on arriving means of transport, not unloaded, before customs border of adjoining country.
(b) Truck and rail only

(2) DES - Delivered Ex Ship
(a) Seller pays costs and freight to deliver goods to the named port of destination.
(b) Used only for maritime shipments

(3) DEQ - Delivered Ex Quay
(a) Seller delivers when goods are placed at the wharf of named port of destination
(b) Maritime shipments only

(4) DDU - Delivery Duty Unpaid
(a) Seller delivers goods to buyer, cleared for import, from arriving transportation at named destination.
(b) Can be used for all types of transport

(5) DDP - Delivery Duty Paid
(a) Seller delivers goods to buyer, cleared for import, from arriving transportation at named destination.
(b) Can be used for all types of transport