INCOterms

By:
Ketty Yuliana Ramos
Carolina Ríos Uribe
Lady Julieth Jiménez
 INCOterms
(International Commercial
Terms)
 Incoterms are internationally accepted commercial
terms, developed in 1936 by the International
Chamber of Commerce (ICC) in Paris. Incoterms
define the respective roles of the buyer and seller
in the agreement of transportation and other
responsibilities and clarify when the ownership of
the merchandise takes place.



 Incoterms: International Commercial Terms

are contract terms that show transport
obligations, costs and risks.
When we buy, it tells us:
•If we have to make logistics arrangements to move

the goods
•If we have to make arrangements to clear goods

for export and or import

•What is included in our price (freight, duties,

import/export fees,etc).
•If there is a problem in transit, who holds the

responsibility

 When we sell, it tells us:
•How to price our sales transaction (do we include
freight, duties and taxes in our price)
•Do we have to export clear the shipments, do we

have to import clear the shipment?

•Do we have to make the logistics arrangements

•Our responsibility if there is a problem in transit



 We need to evaluate our capabilities

before we enter into international
contracts!

 Incoterms
CPT
CIP

BUYER

SELLER
FCA FCA
FAS DDU
FOB DDP
CFR
EXW CIF
CPT
CIP
DES
DEQ
DAF
INCOterms
 Group E - Departure:
◦ EXW. Ex Works(named place)
 Group F - Main Carriage Unpaid:
◦ FCA Free Carrier(named place)
◦ FAS Free Alongside Ship
(named loading port)
◦ FOB Free On Board(named loading port)
 Group C - Main Carriage Paid:
◦ CFR Cost and Freight(named destination port)
◦ CIF Cost, Insurance and Freight
(named destination port)
◦ CPT Carriage Paid To(named destination)
◦ CIP Carriage and Insurance Paid(named
to destination)
 Group D - Arrival:
◦ DAF Delivered At Frontier
(named place)
◦ DES Delivered Ex Ship
(named port)
◦ DEQ Delivered Ex Quay(named port)
◦ DDU Delivered Duty Unpaid (named destination place)
◦ DDP Delivered Duty Paid(named destination place)

Group E - Departure:
EXW. Ex Works (named place)

BUYER

SELLER

EXW

------ = Buyer’s COST & CONTROL

Group E - Departure
 EXW. Ex Works
Group F - Main Carriage Unpaid:
FCA Free Carrier (named place) – previously FRC
FAS Free Alongside Ship (named loading port)
FOB Free On Board (named loading port)

BUYER

SELLER
FCA FCA
FAS
FOB
FCA

=Seller’s COST & CONTROL

------ = Buyer’s COST & CONTROL
Group F - Main Carriage
Unpaid
 FCA Free Carrier (named place)

  FAS Free Alongside Ship (named
loading port)

  FOB Free On Board (named loading
port)



Group C - Main Carriage Paid: (by the seller)
CFR Cost and Freight (named destination port)
CIF Cost, Insurance and Freight (named destination port)
CPT Carriage Paid To (named destination)
CIP Carriage and Insurance Paid to (named destination

CPT
CIP
BUYER

SELLER

CFR
CIF
CPT
CIP

=Seller’s COST & CONTROL

------ = Buyer’s COST & CONTROL
Group C - Main Carriage
Paid
 CFR Cost and Freight (named destination
port)

  CIF Cost, Insurance and Freight
(named destination port)

  CPT Carriage Paid To (named destination)



  CIP Carriage and Insurance Paid to
(named destination)



Group D - Arrival:
DAF Delivered At Frontier (named place)
DES Delivered Ex Ship (named port)
DEQ Delivered Ex Quay (named port)
DDU Delivered Duty Unpaid (named destination place)
DDP Delivered Duty Paid (named destination place)
DDU
DDP

BUYER

SELLER

DDU
DES DDP
DEQ

DAF

=Seller’s COST & CONTROL

------ = Buyer’s COST & CONTROL
Group D - Arrival
 DAF Delivered At Frontier (named place)

  DES Delivered Ex Ship (named port)

  DEQ Delivered Ex Quay (named
port)

DIFERENCES BETWEEN DES AND DEQ
Port of dest inat ion

DES

DEQ
  DDU Delivered Duty Unpaid (named destination place)

  DDP Delivered Duty Paid (named destination
place)

SUMMARY
SUMMARY


 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.


 While the EXW term represents the minimum

obligation for the seller, DDP represents the
maximum obligation.

Help on the Net
www.tradeport.org/ts/
www.census.gov/foreign-trade/www/
www.sba.gov/gopher/Business-Development/International-Trade/Guide-To-
Exporting/
www.freightworld.com/information.html


 ¡THANKS YOU!