The INternational COmmercial TERMS are the obligations of buyers and sellers under an international trade agreement.
They thus specify the respective responsibilities and sharing:
- Costs
- Risks
Incoterms
Incoterms are a codification of the terms of a commercial transaction set up by the International Chamber of Commerce. Each modality is codified by three letters and is inseparable from the place of delivery to which it applies.
Incoterms do not define the time of transfer of ownership! They only define the time of transfer of risks related to transport, different fees and transport organization. They define that particular buyer or seller must eventually bear the insurance of the transportation of goods. In terms of the insurance contract, the rules define that in both cases, CIP and CIF. In all other cases, insurance coverage is the responsibility of who bears the risk.
Incoterms 2010
Since 1 January 2011, Incoterms 2000 have become the Incoterms 2010.
You will find below a summary of Incoterms 2010:
| Incoterms | Export customs declaration | Carriage to port of export | Unloading of truck in port of export | Loading on vessel/airplane in port of export | Carriage (Sea/Air) to port of import | Insurance | Unloading in port of import | Loading on truck in port of import | Carriage to place of destination | Import customs clearance | Import duties and taxes |
| EXW | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FCA | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FAS | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FOB | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| CPT | Seller | Seller | Seller | Seller | Seller | Buyer | Seller | Buyer/Seller | Seller | Buyer | Buyer |
| CFR(CNF) | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer/Seller | Buyer | Buyer | Buyer | Buyer |
| CIF | Seller | Seller | Seller | Seller | Seller | Seller | Buyer/Seller | Buyer | Buyer | Buyer | Buyer |
| CIP | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer/Seller | Seller | Buyer | Buyer |
| DAT | Seller | Seller | Seller | Seller | Seller | Seller/Buyer | Seller | Buyer | Buyer | Buyer | Buyer |
| DAP | Seller | Seller | Seller | Seller | Seller | Seller/Buyer | Seller | Seller | Seller | Buyer | Buyer |
| DDP | Seller | Seller | Seller | Seller | Seller | Seller/Buyer | Seller | Seller | Seller | Seller | Seller |
Remarques Incoterms
- Seller: Seller’s liability
- Buyer: Responsibility of the buyer
- Buyer/Seller : Depends on the negotiation between the seller and the buyer or the negotiation of the contract of carriage.
Abbreviations incotermes
- EXW : Ex works
- FCA : Free carrier
- CPT : Carriage paid to
- CIP : Carriage and insurance paid to
- DAT : Delivred at terminal
- DAP : Delivred at place
- DDP : Delivred dutty paid
- FAS : Free alongside ship
- FOB : Free on board
- CFR : Cost and freight
- CIF : Cost insurance and freight
