Incoterms (International Commercial Terms) are pre-defined & coded terms, used to define the terms of payment in the buying & selling of goods. The Incoterms 2010 are only the latest set of rules that update, complete & replace an exhaustive list of all previous publications.

The following are also specified:

Terms used for all modes of transport: EXW, FCA, CPT, CIP, DAT, DAP, DDP. Terms suitable only for sea transport: FAS, FOB, CFR, CIF.


We can divide the Incoterms 2010 into the following groups according to the initial letter of the acronym, the terms belonging to the same group share similar characteristics.


Group F contains three terms:
FCA (Free Carrier)


Group C contains 4 terms

CFR (Cost & Freight)
CPT (Carriage Paid To)
CIF (Cost Insurance & Freight)
CIP (Carriage, Insurance Paid to)

The letter C has two different meanings: Carriage or Cost. All these terms give the seller the responsibility but not the risk of the transport of goods in the place of destiny clarified. Which means that there will be a tariff point up to which the seller bears the cost of transportation & a damage point up to which the seller bears the risk of damage to the goods.


Group D contains 3 terms

DAP (Delivered At Place)
DAT (Delivered At Terminal)
DDP (Delivered Duty Paid)
It is the group of maximum obligation for the seller, who takes on the risks & costs of delivery until destination.

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