INCOTERMS® 2010
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:
- Incoterms is a recorded statement
- It can be used only in the plural
- it can be used only with capital letter I
- Only the 11 deposited elements are called “Incoterms”
Terms used for all modes of transport: EXW, FCA, CPT, CIP, DAT, DAP, DDP. Terms suitable only for sea transport: FAS, FOB, CFR, CIF.
INCOTERM GROUPS
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
Group F contains three terms:
FCA (Free Carrier)
- No. 10 Packages with FAS (Free Along Side)
- The volume of the FOB (Free on Board)
- The chargeable wei A common element of these terms is the main transport that is paid by the Purchaser which, together with this responsibility, it also assumes the associated risks from the place & the time when the goods are delivered to the Carrier by him (Purchaser) appointed.
GROUP C
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
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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