Inco Terms

Inco Terms are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. They are used in conjunction with a sales agreement or other method of transacting the sale.

DDP

Delivered Duty Paid

Cost of delivery, including duty, paid up to a named place in the country of importation.  Applies to all modes of transport.

DDU

Delivered Duty Unpaid

As for DDP, except that the buyer pays the import duty.

DEQ

Delivered Ex Quay

Costs of delivery, duty paid, to the named port of destination. Sea or inland waterway transport only.

DES

Delivered Ex Ship

Costs of delivery on board the vessel, duty unpaid, at the named port of destination.  Sea or inland waterway transport only.

DAF

Delivered At Frontier

Costs of delivery, duty unpaid at the named point and place at the frontier.  Applies to all modes of transport.

CIP

Carriage and Insurance Paid

Costs of carriage and insurance of the goods, duty unpaid to the named destination.  Applies to all modes of transport.

CPT

Carriage Paid To

As for CIP, except that the cost of insurance is carried by the buyer.

CIF

Cost, Insurance and Freight

Cost of goods plus insurance and freight, duty unpaid, to a named port of destination.  Sea or inland waterway transport only.

CFR

Cost and Freight

As for CIF except that the cost of insurance is covered by the buyer.

FOB

Free on Board

All costs up to delivery over the ship's rail at the named port of shipment.  Sea or inland waterway transport only.

FAS

Free Alongside Ship

All costs up to delivery on quay or in lighters at the named port of shipment.  Sea or inland waterway transport only.

FCA

Free Carrier

Costs of delivery, cleared for export, into the charge of the carrier named by the buyer at the named place or point.  Applied mostly to air and rail transport but could be used for all modes.

EXW

Ex-Works

The goods are made available to the buyer at the exporter's premises, suitably packed unless otherwise arranged for a known means of transport.

Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation. FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.

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