Useful abbreviations in trucking Incoterms



The following topic is inserted in order to provide a quick overview of delivery clauses. This is indirectly related to transportation, but closely related to the customer-supplier relationship.
ICC first published their version of delivery clauses in 1936. The latest version was published in 2000.
Group E |
EXW |
Ex Works |
The seller delivers when he places the goods at the disposal of the buyer at the seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle. This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller's premises. Used for all modes of transport. |
Group F |
FCA |
Free Carrier |
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The chosen place of delivery has an impact on the obligations of loading and unloading the goods at the place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading. Used for all modes of transport. |
FAS |
Free Alongside Ship |
The seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. Requires the seller to clear the goods for export. Used for sea transport. |
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FOB |
Free on Board |
The seller delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. Requires the seller to clear the goods for export. Used for sea transport. |
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Group C |
CFR |
Cost and Freight |
The seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination. But the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. Used for sea transport. |
CIF |
Cost, Insurance and Freight |
The seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination. But the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, the seller also has to obtain marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. Used for sea transport. |
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CPT |
Carriage Paid To |
The seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and the buyer bears all risks and any other costs occurring after the goods have been delivered. Used for all modes of transport. |
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CIP |
Carriage and Insurance Paid To |
The seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been delivered. However, the seller also has to obtain insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contacts for insurance and pays the insurance premium. Used for all modes of transport. |
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Group D |
DAF |
Delivered at Frontier |
The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining county. Used mainly for road- and rail transport. |
DES |
Delivered Ex Ship |
The seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. Used for sea transport. |
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DEQ |
Delivered Ex Quay |
The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risk involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). Requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes, and other charges upon import. Used for sea transport. |
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DDU |
Delivered Duty Unpaid |
The seller delivers the goods to the buyer, not cleared for import, and not unloaded from arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any "duty" (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of customs duties, taxes and other charges) for import in the country of destination. Used for all modes of transport. |
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DDP |
Delivered Duty Paid |
The seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all cost and risks involved in bringing the goods thereto including, where applicable, any "duty" (which term includes the responsibility for and the risk of the carrying out of customs formalities, customs, duties, taxes and other charges) for import in the country of destination. Used for all modes of transport. |
Source: ICC