What is Incoterms?
Also known as: Inkoterms, international commercial terms
Rules issued by the International Chamber of Commerce (ICC) that express in short three-letter abbreviations where the seller and buyer hand over the goods, at which point risk passes to the buyer, and who bears the costs of carriage, insurance and clearance. They do not replace the sale contract: matters such as payment terms, transfer of ownership and liability are agreed in the contract itself. In the CCD the delivery terms are shown with a numeric and a letter code under the classifier in Annex 7 to the instruction. The Incoterms 2020 edition contains 11 rules:
- EXW (Ex Works)
- FCA (Free Carrier)
- CPT (Carriage Paid To)
- CIP (Carriage and Insurance Paid To)
- DAP (Delivered at Place)
- DPU (Delivered at Place Unloaded)
- DDP (Delivered Duty Paid)
- FAS (Free Alongside Ship)
- FOB (Free on Board)
- CFR (Cost and Freight)
- CIF (Cost, Insurance and Freight)
Source: ICC: Incoterms 2020; ICC Academy: Incoterms 2020 vs 2010, what's changed?; BYD to'ldirish tartibi to'g'risidagi yo'riqnoma, 7-ilova