• EXW – Ex Works (named place of delivery…)

The single responsibility of the seller is to hand over the merchandise to the buyer. The revision 2000 of Incoterms recognizes a very widespread practice: the seller takes in his charge and is responsible for loading of merchandise on to the vehicle of the buyer (on condition of indicating EXW loaded). The buyer incurs all the expenses inherent in transport right from departure from the factory until arrival at the destination.

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• FCA – Free Carrier (named place of delivery…)

The buyer selects the mode of transport as well as the transporter and he pays for the main transport. The transfer of expenses and risks is affected at the time when the transporter takes charge of the merchandise. In the case of truck, wagon, and full container it is the seller who does the loading. The passage of export through custom is the responsibility of the seller. "The FCA premises of the seller were officialised by the revision of Incoterms 2000.

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• FAS – Free Alongside Ship (named port of shipment…)

The obligations of the seller are henceforth fulfilled when the merchandise is taken out of the customs and place alongside the ship on the quay or on the barges. From this point onwards, the buyer incurs all the expenses and risks. The buyer also indicates the ship and pays the freight.

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• FOB – Free on Board (named port of shipment…)

The merchandise is placed on board the ship by the seller. The buyer indicates the ship and pays the freight. Transfer of expenses and risks is affected at the time when the merchandise passes from the slings of the ship. The export formalities devolve upon the seller.

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• CFR – Cost and Freight (named port of shipment…)

The seller selects the ship and pays the freight up to the agreed port. Loading on board the ship devolves upon the seller along with shipping formalities. The transfer of risks is the same as in the case of FOB.

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• CIF – Cost, Insurance and Freight (named place of destination…)

The terms are identical to those of CFR with an additional obligation of the seller to supply maritime insurance policy against risk of loss or damages to the merchandise. It is the FAP insurance policy (free of any special damage) for 110 % of the value. The seller pays the insurance premium, and the merchandise travels at the risk and peril of the buyer. This is the Incoterm which is very much used in practice for, it tends to divide the expenses and risks in a fair manner. The buyers appreciate this Incoterm, for; they are freed from the logistical formalities.

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• CPT – Carriage paid to (named place of destination…)

The seller selects the transport and pays the freight up to the place indicated. The risks of damage or loss as well as escalation of eventual costs are at the cost of the buyer starting from the moment when the merchandise was handed over to the first transporter.

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• CIP – Carriage and Insurance Paid to (named place of destination…)

CIP is identical to CPT, but, the seller must supply additionally transport insurance. The seller signs a transport contract pays the freight and insurance premium.

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• DAT – Delivered at Terminal (named terminal at port or place of destination…)

A new term in Incoterms 2010 that will take Effect starting January 1st, 2011 , Seller pays for freight costs to the agreed terminal (warehouse, container yard, rail, sea or air cargo terminal) including unloaded from carrier, except for costs related to import clearance; all risks up to the point that the goods are unloaded at the terminal will be on the Seller.

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• DAP – Delivered at Place (named place of destination…)

Another new term in Incoterms 2010 that will take Effect starting January 1st, 2011, the seller pay for freight costs to agreed place or destination without unloading the cargo from the means of transport, the seller bears all risks involved in bringing the goods to the agreed place or destination.

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• DDP – Delivered Duty Paid (named place of destination…)

The seller has in this case maximum obligation, transfer of expenses and risks being done at the point of delivery on the buyer's premises and the unloading belongs to his responsibility (except when stated to the contrary).

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The following terms are dropped from the new Incoterms 2010:

DAF – Delivered At Frontier (named place of delivery)

DES – Delivered Ex Ship (named port of delivery)

DEQ – Delivered Ex Quay (named port of delivery)

DDU – Delivered Duty Unpaid (named place of destination)

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