Gold Vanlines

Incoterms

Free On Board,International Commercial Terms (INCOTERMS)

Incoterms are the international commercial terms which are pre made by International Chamber of Commerce and are acceptable as incoterms worldwide by every government. The latest edition of incoterms is incoterms2011 which is an eight edition . These incoterms are the international commercial terms used for commercial transaction internationally to reduce uncertainty coming out from different interpretation of the rules in different countries so incoterms are used. The most commonly used incoterms are free on board ( FOB) & cost insurance freight ( CIF). Each incoterm refers to a type of agreement for the purchase and shipping of goods internationally. There are different terms, each of which helps users deal with different situations involving the movement of goods. International commercial terms also deal with the documentation required for global trade, specifying which parties are responsible for which documents. These incoterms are made to reduce complexities in international trade terms and easy understanding of terms of delivery..

International Commercial Terms (INCOTERMS)

EXW Ex Works
Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation.

FCA Free Carrier
Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport.

FAS Free Alongside Ship
Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized.

FOB Free On Board
Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

CIF Cost, Insurance and Freight
Cost and Freight, Named ocean port of destination. This term is used for ocean shipments that are not containerized.

CPT Carriage Paid To
Carriage Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

CIP Carriage and Insurance Paid To
Carriage and Insurance Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

DAF Delivered At Frontier
Delivered At Frontier, named place of destination, by land, not unloaded. This term is used for any mode of transportation but must be delivered by land.

DES Delivered Ex Ship
Delivered Ex-Ship, named port of destination, not unloaded. This term is used for ocean shipments only.

DEQ Delivered Ex Quay
Delivered Ex-Quay, named port of destination, unloaded, not cleared. This term is used for ocean shipments only.

DDU Delivered Duty Unpaid
Delivered Duty Unpaid, named place of destination, not unloaded, not cleared. This term is used for any mode of transportation.

DDP Delivered Duty Paid
Delivered Duty Paid, named place of destination, not unloaded, cleared. This term is used for any mode of transportation.