International Commercial Terms - Incoterms

international commerce terms (incoterms) image
international commerce terms (incoterms) image Inquiry & Order

Introduction

International commercial terms (Incoterms) is made by international commerce chamber, including EXW, FOB, FAS, FCA, CFR, CNF, CFR, CIF, CIP, CNI, DAF, DES, DEQ, DDU and DDP.

Incoterms Complete Name

International Commercial Terms, International Rules for the Interpretation of Trade Terms

Incoterms Issued Organization

International Chamber of Commerce

History

In 1923, 6 Incoterms are used in 13 countries.
In 1928, the applied countries are over 30.
In 1936，the first version of Incoterms is published, including terms of FAS, FOB, C&F, CIF, Ex Ship and Ex Quay
In 1953, the first version is modified first time by adding terms suitable for delivery for other transportation methods, except by sea, including DCP, FOR and FOT.
In 1967, the terms of DAF and DDP are added.
In 1974, the new definition of FOB is added the delivery by air.
In 1980, the terms of FRC is added.
In 2000, FAS and DEQ are added new definition.
In 2010, the terms of DAF, DES, DEQ and DDU are removed and DAT and DAP are added.
In 2020, the terms of EXW, FAS and DDP are removed and application range is larged for FOB and CIF, terms of CNI is added.

Incoterms and its definition

CNF, C&F, is Cost and Freight, meaning cost and freight.
CFR, Cost and Freight.
CNI, Cost and Insurance.
CIF, Cost, Insurance and Feight.
CPT, Carriage Paid to.
DAF, Delivered at Frontier.
DAT, Delivered at Terminal.
DAP, Delivered at Place.
DCP, Delivered Carriage Paid to.
DES, Delivered Ex Ship.
DEQ, Delivered Ex Quay (Duty Paid to).
DDU, Delivered Duty Unpaid.
DDP, Delivered Duty Paid.
EXW, Ex Works.
EX Ship, Cost and Insurance.
EX Quay, Cost and Insurance.
FAS, Free Alongside Ship.
FOB, Free on Board.
FOB Airport, Free on Board Airport.
FOR, Free On Rail.
FOT, Free on Trunk.