1. INternational COmmercial TERMS
PRESENTED BY
| PANKAJ PRABHA |&| ANKITA SINGH|
PUNJAB NATIONAL BANK – MANIPAL UNIVERSITY BANGALORE CAMPUS

2. INCOTERMS
These are internationally accepted commercial
terms defining the respective roles and
responsibilities (including costs) of the buyer and
seller in the arrangement of transportation and other
obligations

3. The Origin and History
First published by the International Chamber
of Commerce (ICC) in 1936 & since updated in
1953, 1967, 1976, 1980, 1990, 2000 and then
the current revision in 2010.
Incoterms® reflect world-wide trade practices,
as practices change, Incoterms® are revised

4. Purpose
To clarify how functions, costs and risks are split between
the buyer and the seller in connection with delivery of goods
as required in sales contract
Each term clearly specifies the responsibilities of the seller
and the buyer
Delivery, risks and costs are the critical points

5. Importance
Reduce the uncertainty caused by trade practices in
different countries.
Simplify the negotiations involved in international
commerce.
Ensure common understanding of obligations

6. Group Term Complete Name Transport Mode
E DEPARTURE EXW Ex Works Any
F MAIN CARRIAGE UNPAID FCA Free Carrier Any
FAS Free Alongside Ship Sea
FOB Free on Board Sea
C MAIN CARRIAGE PAID CFR Cost and Freight Sea
CIF Cost Insurance and Freight Sea
CPT Carriage Paid To Any
CIP Carriage and Insurance Paid to Any
D ARRIVAL DAT Delivered At Terminal Any
DAP Delivered At Place Any
DDP Delivered Duty Paid Any
Incoterms 2010

7. Changes in Incoterms from 2000 to 2010
New Terms Added
1. DAT – Delivered at Terminal (named terminal/port of Delivery)
2. DAP – Delivered at Place ( named Place of delivery)
Terms Eliminated
1.DAF – Delivered at Frontier (named place of delivery)
2.DES – Delivered Ex Ship (named port of delivery)
3.DEQ – Delivered Ex Quay (named port of delivery)
4.DDU – Delivered Duty Unpaid (named place of destination)

8. The Steps of Global
Logistics
Main
International
Transportation
4
Handling
Inbound
Customs
Clearance
Duties
Final
TransportationUnloading
Packing
Loading
Preliminary
Transportation
Customs Clearance
for Export
Handling
Outbound
Insurance
1
2 3
5
6
7
891011

9. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Imports
Taxes
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer

10. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of
export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Imports
Taxes
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer

11. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of
export
Unloading of
truck in port
of export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to
port of import
Insurance
Loading on
truck in port
of import
Carriage to
place of
destination
Import
customs
clearance,
Imports
taxes
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer

12. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to
port of
import
Insurance
Loading on
truck in port
of import
Carriage to
place of
destination
Import
customs
clearance,
Imports
Taxes
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer

13. Incoter
m 2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer

14. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer

15. Incoter
m 2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading
on truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
CPT Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer

16. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
CIP Seller Seller Seller Seller Seller Seller Seller Buyer Buyer

17. Incoter
m 2010
Export-
Customs
declaration
Carriage to port
of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to port
of import
Insurance
Terminal
Charges
Carriage to
place of
destinatio
n
Import
customs
clearance,
Import
Taxes
DAT Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer

18. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to
port of
import
Insurance
Loading
on truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
DAP Seller Seller Seller Seller Seller Seller Seller Seller Buyer

19. Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading
of truck in
port of
export
Loading
charges in
port of
export
Carriage (Sea
Freight/Air
Freight) to
port of
import
Insurance
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance,
Import
Taxes
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller