Incoterms 2010 - the international rules that clarify the terms in foreign trade. Represent the standard conditions of contract for the International Sale. Define the rights and obligations of the parties under the contract of sale with regard to the supply of goods. Each term of the Incoterms 2010 is a three-letter abbreviation.

Incoterms are divided into 4 groups:

Group E - Place of departure

Group F - Main carriage unpaid

Group C - Main carriage paid

Group D - Arrival

EXW EX Works (... named place). The seller's responsibility ends when the goods are transferred to the buyer or to the carrier hired by the buyer at the seller's premises (warehouses, shops, etc.); Seller is not responsible for loading of the goods for transportation; the buyer bears all costs of removal of goods from the warehouse, transportation, customs clearance and so on. Always used with indication of Seller´s location.

FCA Free Carrier (... named place). The seller fulfills his obligation to deliver when he delivers the goods cleared from export duties, to the carrier nominated by the buyer at the named place. Named place of delivery affects the obligations of loading and unloading the goods in such a place. If delivery occurs at the seller's premises, the seller is responsible for shipping. If delivery occurs at any other place, the seller is not responsible for the shipment.

FAS Free Alongside Ship (... named port of shipment). Seller assumes shipping costs in the port of departure. The seller fulfills his obligation to deliver the goods at the time when the goods are placed alongside the vessel on the quay or in lighters (at the named port of shipment). The buyer pays the costs of loading, freight, insurance, unloading and delivery to the destination. The risk shall pass upon delivery to the port of loading pier.

FOB Free On Board (... named port of shipment). The seller must deliver the goods to the port and load on the vessel indicated by the buyer; shipping costs for the loading of goods on board are borne by the seller. The risk of accidental loss or damage of property vested in the seller - until the goods pass the ship's side, and the buyer - from that point. As a rule, the ownership of the goods passes from the seller to the buyer simultaneously with the transition of risk.

CFR Cost and Freight (... named port of destination). Terms of delivery CFR means that the seller pays for shipping the goods to the port, loading and freight, and also provides customs clearance procedures upon export. Buyer pays for insurance. The risk of loss or damage, as well as additional costs after the goods pass the ship's rail pass to the buyer. Terms of delivery CFR are only used for the carriage of goods by sea or inland waterway.

CIF Cost, Insurance and Freight (... named port of destination). Delivery on CIF means that the seller delivers when the goods have passed the ship's rail at the port of shipment, and the sales price includes the value of goods, freight or transportation costs, as well as the cost of insurance for shipping. Seller's liability for the goods ends when the goods are delivered to the carrier or are loaded on board the vessel, depending on the terms of the contract.

CIP Carriage and Insurance Paid to (... named place of destination). Seller delivers the goods to the named carrier. In addition, the seller must pay the costs associated with the transportation of the goods to the named destination. The seller's responsibility ends after he delivered the goods to the carrier, which has been specified by the buyer. Also, under the terms of CIP, the customs procedures for export goods must be carried by the seller.

CPT Carriage Paid To (... named place of destination). The seller bears the costs of freight and transportation to the named destination. Buyer pays shipping insurance. Risks are transferred at the time of delivery of goods to the first carrier.

DAT Delivered At Terminal (... named terminal of destination). The seller finishes the delivery when the goods are unloaded from the arriving means of transport and are available to the buyer at the agreed terminal at the named port or place of destination. The seller bears all risks associated with the delivery of goods and unloading at the terminal at the named port or place of destination.

DAT requires the seller to perform customs formalities for export, where applicable. However, the seller is not obliged to carry out customs formalities for the import, to pay import duties or perform other customs formalities associated with the import.

DAP Delivered At Point (... named point of destination). The seller finishes the delivery when the goods are available to the buyer on the arriving means of transport ready for unloading at the agreed place of destination. The seller bears all risks associated with the delivery of the goods at the named place.

DAP requires the seller to perform customs formalities for export, where applicable. However, the seller is not obliged to carry out customs formalities for the import, to pay import duties or perform other customs formalities for the import.

DDP Delivered Duty Paid (... named place of destination). Is used, indicating the place of arrival. The seller's responsibility ends when the goods delivered to the specified place in the buyer's country. All risks, all costs of delivering the goods (taxes, fees, etc.), responsibility for loss or damage of goods, including fees and other payments paid at import, up to this point bears seller. He also is responsible for customs clearance; there may be added any provisions that exempt the seller from payment of certain additional formalities. This type of division of responsibility may be used irrespective of the mode of delivery).