International Commercial Terms (INCO terms - Short form) are terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial trade. Generally used as three-letter trade terms which express sales contract, it clearly communicate the costs, freight (And/or other related charges related to Mode of shipment Sea/Air/Rail/Road) and risks associated with the transportation and delivery of goods.
These rules accepted by governments, legal authorities, and practitioners worldwide international Trade. The rules are to mutually reduce or eliminate altogether uncertainties can occur from different practices/rules in different countries.
INCO Terms First published in 1936, and is been periodically updated. Incoterms is a registered trademark of the ICC.
- EXW Ex Works (named place of delivery).
- FCA - Free Carrier (named place of delivery)
- CPT Carriage Paid To (named place of destination)
- CIP Carriage and Insurance Paid to (named place of destination)
- DAT Delivered at Terminal (named terminal at port or place of destination)
- DAP Delivered at Place (named place of destination)
- DDP Delivered Duty Paid (named place of destination)
- Sea and Inland Waterway Transport
- FAS Free Alongside Ship (named port of shipment)
- FOB Free on Board (named port of shipment)
- CFR Cost and Freight (named port of destination)
- CIF Cost, Insurance and Freight (named port of destination)
- Previous terms from Incoterms 2000 eliminated from Incoterms 2010
- DAF Delivered at Frontier (named place of delivery)
- DES Delivered Ex Ship
- DEQ Delivered Ex Quay (named port of delivery)
- DDU Delivered Duty Unpaid (named place of destination)