Incoterms

What are INCOTERMS?

The INCOTERMS establish a set of international rules for the interpretation of commercial terms related to the sale contracts, limiting the rights and obligations of the parties in relation to the delivery of the goods.

They are published by the Chamber of International Trade, the last version being published on January 1, 2010.

Incoterms are not laws, they are uses and rules, therefore a new version does not derogate the previous ones, due to this when you specify the name of the Incoterm you have to identify which version it refers to.

Aspects that regulate.

The delivery of the goods. Do not confuse delivery with possession.
Timing of transmission of the risks on the goods from the seller to the buyer.
Distribution of the expenses inherent to the import-export.
Procedures for customs documents.

Brief description and structure.

Incoterms are classified according to the means of transport: Any mode or modes of transport (also when partially maritime).

EXW (EX Works)

EX Works EXW named place Incoterms® 2010 — This term may be used for either domestic or international trade.

FCA (Free Carrier-named place)

Free Carrier FCA named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

CPT (Carriage Paid To)

Carriage Paid To CPT named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

CIP (Carriage & Insurance Paid)

Carriage and Insurance Paid CIP to named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

DAT (Delivered at Terminal)

Delivered at Terminal DAT named place Incoterms® 2010 — This term may be used regardless of the mode or modes of carriage to be used.

DAP (Delivered at Place)
Entregado en lugar

Delivered at Place DAP named place Incoterms® 2010 — This term may be used whatever mode or modes of transport will be used.

DDP (Delivered Duty Paid)
Entregada derechos pagados

Delivered Duty Paid DDP named place of destination Incoterms® 2010 — This term may be used whatever mode or modes of transport may be used.

Transporte marítimo y vías navegables internas

FAS (Free Alongside Ship)
Franco al costado del buque

Free Alongside Ship FAS named port of shipment Incoterms® 2010 — The seller delivers the goods when they are placed alongside the vessel nominated

FOB (Free on Board)

Free On Board FOB named port of shipment Incoterms® 2010 — There is a significant change from the meaning of this term in former revisions of

CFR (Cost & Freight)
Coste y flete

Cost and Freight CFR named port of destination Incoterms® 2010 — This rule is intended for use only when carriage is by sea or inland waterway.

CIF (Cost Insurance & Freight)
Coste, seguro y flete

Cost Insurance and Freight CIF named port of destination Incoterms® 2010 — This term is to be used only when carriage is by sea or inland waterway.