Incoterms or international commercial terms are a series of international sales

terms, published by International Chamber of Commerce (ICC) and widely used in

international commercial transactions. They are used to divide transaction costs and
responsibilities between buyer and seller and reflect state-of-the-art transportation
practices. They closely correspond to the U.N. Convention on Contracts for the
International Sale of Goods. The first version was introduced in 1936 and the present
dates from 2000.

Contents
[hide]

1 Group E Departure
2 Group F Main carriage unpaid
3 Group C Main carriage paid
4 Group D Arrival
5 Summary of terms
6 See also
7 References

Group E Departure
EXW Ex Works (named place): The seller makes the goods available at his
premises. The buyer is responsible for all charges.

This term may be the easiest to administer, however may not be in the seller's best
interests. There is no control over the final destination of the goods. It may be
possible for the seller to negotiate better freight rates than the buyer. A vehicle
arriving to take delivery of the seller's goods under EXW may not be suitable for
carriage.

Group F Main carriage unpaid

FCA Free Carrier (named place)
The seller hands over the goods, cleared for export, into the custody of the first
carrier (named by the buyer) at the named place. This term is suitable for all
modes of transport, including carriage by air, rail, road, and containerised /
multi-modal transport.
FAS Free Alongside Ship (named loading port)
The seller must place the goods alongside the ship at the named port. The
seller must clear the goods for export; this changed in the 2000 version of the
Incoterms. Suitable for maritime transport only.
FOB Free on board (named loading port)
The classic maritime trade term. The seller must load the goods on board the
ship nominated by the buyer, cost and risk being divided at ship's rail. The
seller must clear the goods for export. Maritime transport only. It also includes
Air transport when the seller is not able to export the goods on the schedule
 time mentioned in the letter of credit. In this case the seller allows a deduction
of sum equivalent to the carriage by ship from the air carriage.

Group C Main carriage paid

CFR Cost and Freight (named destination port)
Seller must pay the costs and freight to bring the goods to the port of
destination. However, risk is transferred to the buyer once the goods have
crossed the ship's rail. Maritime transport only.
CIF Cost, Insurance and Freight (named destination port)
Exactly the same as CFR except that the seller must in addition procure and
pay for insurance for the buyer. Maritime transport only.
CPT Carriage Paid To (named place of destination)
The general/containerised/multimodal equivalent of CFR. The seller pays for
carriage to the named point of destination, but risk passes when the goods are
handed over to the first carrier.
CIP Carriage and Insurance Paid (To) (named place of destination)
The containerised transport/multimodal equivalent of CIF. Seller pays for
carriage and insurance to the named destination point, but risk passes when the
goods are handed over to the first carrier.

Group D Arrival
DAF Delivered At Frontier (named place)
This term can be used when the goods are transported by rail and road. The
seller pays for transportation to the named place of delivery at the frontier. The
buyer arranges for customs clearance and pays for transportation from the
frontier to his factory. The passing of risk occurs at the frontier.
DES Delivered Ex Ship (named port)
Where goods are delivered ex ship, the passing of risk does not occur until the
ship has arrived at the named port of destination and the goods made available
for unloading to the buyer. The seller pays the same freight and insurance
costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the
seller has agreed to bear not just cost, but also Risk and Title up to the arrival
of the vessel at the named port. Costs for unloading the goods and any duties,
taxes, etc are for the Buyer. A commonly used term in shipping bulk
commodities, such as coal, grain, dry chemicals - - - and where the seller
either owns or has chartered, their own vessel.
DEQ Delivered Ex Quay (named port)
This is similar to DES, but the passing of risk does not occur until the goods
have been unloaded at the port of destination.
DDU Delivered Duty Unpaid (named destination place)
This term means that the seller delivers the goods to the buyer to the named
place of destination in the contract of sale. The goods are not cleared for
import or unloaded from any form of transport at the place of destination. The
buyer is responsible for the costs and risks for the unloading, duty and any
subsequent delivery beyond the place of destination. However, if the buyer
wishes the seller to bear cost and risks associated with the import clearance,
 duty, unloading and subsequent delivery beyond the place of destination, then
this all needs to be explicitly agreed upon in the contract of sale.
DDP Delivered Duty Paid (named destination place)
This term means that the seller pays for all transportation costs and bears all
risk until the goods have been delivered and pays the duty. Also used
interchangeably with the term "Free Domicile". The most comprehensive term
for the buyer. In most of the importing countries, taxes such as (but not limited
to) VAT and excises should not be considered prepaid being handled as a
"refundable" tax. Therefore VAT and excises usually are not representing a
direct cost for the importer since they will be recovered against the sales on
the local (domestic) market.

Incoterms atau International Commercial Terms adalah kumpulan istilah yang

dibuat untuk menyamakan pengertian antara penjual dan pembeli dalam perdagangan
internasional. Incoterms menjelaskan hak dan kewajiban pembeli dan penjual yang
berhubungan dengan pengiriman barang. Hal-hal yang dijelaskan meliputi proses
pengiriman barang, penanggung jawab proses ekspor-impor, penanggung biaya yang
timbul dan penanggung risiko bila terjadi perubahan kondisi barang yang terjadi
akibat proses pengiriman.

Incoterms dikeluarkan oleh Kamar Dagang Internasional atau International Chamber

of Commerce (ICC), versi terakhir yang dikeluarkan pada tanggal 1 Januari 2000
disebut sebagai Incoterms 2000. Incoterms 2000 dikeluarkan dalam bahasa Inggris
sebagai bahasa resmi dan 31 bahasa lain sebagai terjemahan resmi.

Tiga belas istilah dalam Incoterms 2000:

1. EXW (nama tempat): Ex Works, pihak penjual menentukan tempat

pengambilan barang.
2. FCA (nama tempat): Free Carrier, pihak penjual hanya bertanggung jawab
untuk mengurus izin ekspor dan meyerahkan barang ke pihak pengangkut di
tempat yang telah ditentukan.
3. FAS (nama pelabuhan keberangkatan): Free Alongside Ship, pihak penjual
bertanggung jawab sampai barang berada di pelabuhan keberangkatan dan
siap disamping kapal untuk dimuat. Hanya berlaku untuk transportasi air.
4. FOB (nama pelabuhan keberangkatan): Free On Board, pihak penjual
bertanggung jawab dari mengurus izin ekspor sampai memuat barang di kapal
yang siap berangkat. Hanya berlaku untuk transportasi air.
5. CFR (nama pelabuhan tujuan): Cost and Freight, pihak penjual
menanggung biaya sampai kapal yang memuat barang merapat di pelabuhan
tujuan, namun tanggung jawab hanya sampai saat kapal berangkat dari
pelabuhan keberangkatan. Hanya berlaku untuk transportasi air.
6. CIF (nama pelabuhan tujuan): Cost, Insurance and Freight, sama seperti
CFR ditambah pihak penjual wajib membayar asuransi untuk barang yang
dikirim. Hanya berlaku untuk transportasi air.
7. CPT (nama tempat tujuan): Carriage Paid To, pihak penjual menanggung
biaya sampai barang tiba di tempat tujuan, namun tanggung jawab hanya
sampai saat barang diserahkan ke pihak pengangkut.
 8. CIP (nama tempat tujuan): Carriage and Insurance Paid to, sama seperti
CPT ditambah pihak penjual wajib membayar asuransi untuk barang yang
dikirim.
9. DAF (nama tempat): Delivered At Frontier, pihak penjual mengurus izin
ekspor dan bertanggung jawab sampai barang tiba di perbatasan negara tujuan.
Bea cukai dan izin impor menjadi tanggung jawab pihak pembeli.
10. DES (nama pelabuhan tujuan): Delivered Ex Ship, pihak penjual
bertanggung jawab sampai kapal yang membawa barang merapat di pelabuhan
tujuan dan siap untuk dibongkar. izin impor menjadi tanggung jawab pihak
pembeli. Hanya berlaku untuk transportasi air.
11. DEQ (nama pelabuhan tujuan): Delivered Ex Quay, pihak penjual
bertanggung jawab sampai kapal yang membawa barang merapat di pelabuhan
tujuan dan barang telah dibongkar dan disimpan di dermaga. Izin impor
menjadi tanggung jawab pihak pembeli. Hanya berlaku untuk transportasi air.
12. DDU (nama tempat tujuan): Delivered Duty Unpaid, pihak penjual
bertanggung jawab mengantar barang sampai di tempat tujuan, namun tidak
termasuk biaya asuransi dan biaya lain yang mungkin muncul sebagai biaya
impor, cukai dan pajak dari negara pihak pembeli. Izin impor menjadi
tanggung jawab pihak pembeli.
13. DDP (nama tempat tujuan): Delivered Duty Paid, pihak penjual
bertanggung jawab mengantar barang sampai di tempat tujuan, termasuk biaya
asuransi dan semua biaya lain yang mungkin muncul sebagai biaya impor,
cukai dan pajak dari negara pihak pembeli. Izin impor juga menjadi tanggung
jawab pihak penjual.

Contoh penggunaan Incoterms 2000:

FCA Jakarta Incoterms 2000

FOB Liverpool Incoterms 2000
DDU Frankfurt Schmidt GmbH Warehouse 4 Incoterms 2000

Summary of terms
For a given term, "Yes" indicates that the seller has the responsibility to provide the
service included in the price. "No" indicates it is the buyer's responsibility. If
insurance is not included in the term (for example, CFR) then insurance for transport
is the responsibility of the buyer or the seller depending on who owns the cargo at
time of transport. In the case of CFR terms, it would be the buyer while in the case of
DDU or DDP terms, it would be the seller.
 Unload
Unload onto
Transport from Landing Landing Entry -
Load Export- Transport trucks from Transport Entry -
to truck at charges at charges at Duties
to duty to import's the to Insurance Customs
exporter's the origin's importer's and
truck payment port importers' destination clearance
port origin's port port Taxes
port
port
EXW No No No No No No No No No No No No
FCA Yes Yes Yes No No No No No No No No No
FAS Yes Yes Yes Yes No No No No No No No No
FOB Yes Yes Yes Yes Yes No No No No No No No
CFR Yes Yes Yes Yes Yes Yes No No No No No No
CIF Yes Yes Yes Yes Yes Yes No No No Yes No No
CPT Yes Yes Yes Yes Yes Yes No No No No No No
CIP Yes Yes Yes Yes Yes Yes No No No Yes No No
DAF Yes Yes Yes Yes Yes Yes No No No No No No
DES Yes Yes Yes Yes Yes Yes No No No Yes No No
DEQ Yes Yes Yes Yes Yes Yes Yes No No Yes No No
DDU Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No
DDP Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
 LEGEND
RISK
Refers to the possibility of an occurrence
which could cause loss or damage to goods.
Buyers and sellers purchase insurance to
safeguard against risk.

COSTS
Costs specifically attributed to buyer and
seller accounts must be clearly stated in Premise Customs Loading Inland Carrier Alongside On-board On-board Unloaded Customs Named Inland Premise,
sale and purchase contracts as referenced or named Clearance Freight Not ship vessel vessel Port of Clearance Destination Freight Not unloaded
in the chosen Incoterm. If shipment is not a
normal transportation of goods, then this place (Export) Unloaded Port of Port of Port of Destination (Import)
should be specified in the contract between Loading Loading Destination
the buyer and seller.
Transport Obligations Costs & Risks

SELLERS RISK
MULTI
BUYERS RISK EXW
SELLERS COSTS Ex works

BUYERS COSTS

MULTI
MONO Maritime or inland waterways only FCA
Free Carrier Multimodal
Any mode of transport,
MULTI Delivered at sellers premises
including multimodal.

MULTI
FCA
Free Carrier Multimodal
INCOTERMS 2000 Delivered at carriers premises

This guide is designed as a convenient reference to MONO

FAS
Critical Points in the international transportation Free Alongside Ship
system, specifically in relation to the application of
Port of shipment
Incoterms to sale and purchase contracts.
MONO
Incoterms represent a set of international rules for FOB
Free On Board
the interpretation of commonly used trade terms,
eliminating or reducing the uncertainties of different Port of shipment
interpretations of these terms in different countries.
Since they were first published in 1936, Incoterms MONO
CFR
have been updated six times. Incoterms 2000 contain Cost and Freight
13 rules for standardized global trade, defining the Named port of destination
most important responsibilities of buyers and sellers
Compulsory sea-insurance
in international sales contracts. MONO
CIF
Cost, Insurance and Freight
In order to ensure the new Incoterms 2000 terms
Named port of destination
are being applied, buyers and sellers should specify
Incoterms 2000 on all contracts, thus clearly
MULTI
identifying the source of reference for the definition. CPT
Traders using these rules should also clearly specify Carriage Paid to
any and all agreed to variations of the terms. Named place of destination

Compulsory insurance
It is not possible for Incoterms to be complete and MULTI
CIP
comprehensive. Variations in local trades, ports and Carriage and Insurance Paid to
customs are possible. Buyers and sellers must take Named place of destination
care when applying the rules to account for these
parties, by agreement, to suit any particular contract MULTI
or circumstance. DAF
Delivered at Frontier
Named border
PBBs freight professionals can provide expert
assistance in negotiating contracts in relation to
Incoterms, as well as offer consultation on a wide MONO
DES
range of trade, regulatory and insurance matters. Delivered Ex Ship
Named port of destination
Every effort has been made to ensure the diagrams
accuracy. However, PBB Global Logistics accepts no MONO
DEQ
responsibility for errors or omissions in this brochure. Delivered Ex Quay
Named port of destination
This guide is available in PDF format on our web
site at www.pbb.com/incoterms MULTI
DDU
Delivered Duty Unpaid
Named place of destination

MULTI
DDP
Delivered Duty Paid
Global Logistics Named place of destination
 INCOTERM Guide (2000 Revision)
(Terms of Delivery)

BREAKDOWN DIVIDING RESPONSIBILITY FOR RISK AND COSTS BETWEEN BUYER (IMPORTER) AND SELLER (EXPORTER)
INCOTERM EXW FCA FAS FOB CFR CIF CPT CIP DAF DES DEQ DDU DDP

Free Alongside Cost and Cost, Insurance Carriage Paid Carriage and Delivered At Delivered Ex Delivered Duty Delivered Duty
DESCRIPTION EX Works Free Carrier Ship Free On Board Freight and Freight To Insurance Paid to Frontier Ship Delivered Ex Quay Unpaid Paid

named named named port of named port named port named port of named place named place named port of named port of named place named place of
place place shipment of shipment of destination destination of destination of destination named place destination destination of destination destination

Transport Mode All Modes All Modes Ocean Freight Ocean Freight Ocean Freight Ocean Freight All Modes All Modes Truck or Rail Ocean Freight Ocean Freight All Modes All Modes
NOMINATE CARRIER OR FREIGHT
FORWARDER BUYER BUYER BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
STORAGE, LABOR, AND EXPORT
PACKING CHARGES AT ORIGIN SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER
SELLER*
EXPORT CLEARANCE BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

LOADING AT ORIGIN BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

depends on
INLAND FREIGHT BUYER named place! SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

PORT RECEIVING CHARGES (THC) BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

FREIGHT FORWARDER'S FEES*** BUYER BUYER SELLER* SELLER* SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

LOADING ON OCEAN CARRIER BUYER BUYER BUYER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER SELLER

OCEAN / AIR FREIGHT CHARGES BUYER BUYER BUYER BUYER SELLER SELLER SELLER SELLER n/a SELLER SELLER SELLER SELLER
OBLIGATION FOR SELLER** SELLER** SELLER** SELLER** SELLER** SELLER** SELLER** SELLER**
CARGO INSURANCE** BUYER BUYER** BUYER** BUYER** BUYER** SELLER BUYER** SELLER BUYER** BUYER** BUYER** SELLER SELLER
depends on depends on
CHARGES IN FOREIGN PORT / contract of contract of
AIRPORT BUYER BUYER BUYER BUYER BUYER BUYER SELLER carriage BUYER BUYER carriage SELLER SELLER
DUTIES, VAT, AND TAXES AT
DESTINATION BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER SELLER
CUSTOMS CLEARANCE CHARGES -
DESTINATION BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER SELLER
DELIVERY CHARGES TO FINAL
DESTINATION BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER BUYER SELLER SELLER

* Note: Under the terms of the EXW Incoterm, export clearance and licensing is the responsibility of the buyer, HOWEVER
according to the U.S. Export Administration Regulations, this is still the legal responsibility of the seller, UNLESS
the seller has obtained in writing from the buyer (Foreign Principal Party in Interest) a specific agreement to accept the responsibility
for export license determination in writing. This is referred to as a 'routed export transaction'. The seller must provide the buyer with
sufficient technical information to determine export licensing requirements.
** Seller is responsible for insurance to "named point", Buyer is responsible for insurance from the "named point".
*** The payment of the forwarder's fees is sometimes controversial, depending on the contract of sale.

Notes:
Always specify the named place or port, For Example; "FOB Los Angeles", "CPT London", etc.
INCOTERMS may be modified by agreement between Buyer and Seller, For Example; "DDP-VAT UNPAID" QUESTIONS? Call
RISK Includes responsibility for loss and damage and the cost of cargo insurance. American Cargoservice, Inc., San Diego, CA 2004
NOTE: This is only a guide, please refer to ICC Publication No. 560 for detailed description of INCOTERMS. (800) 508-4888