INCOTERMS-2010 (EFFECTIVE 01.01.

2011) ---------------------------------------------------------------------------------Group Term Stand for ---------------------------------------------------------------------------------E EXW Ex-Works

---------------------------------------------------------------------------------F FCA FAS FOB Free Carrier Free Alongside Ship Free on Board

----------------------------------------------------------------------------------C CFR CIF CPT CIP Cost and Freight Cost, Insurance & Freight Carriage Paid To Carriage and Insurance Paid to

----------------------------------------------------------------------------------D DAT DAP DDP Delivered at Terminal Delivered at Place Delivered Duty Paid

-----------------------------------------------------------------------------------Incoterms 2010 applicable for all modes of transport: EXW : ex works FCA : free carrier CPT : carriage paid to CIP : carriage and insurance paid to DAT : delivered at terminal NEW!

DAP : delivered at place NEW! DDP : delivered duty paid Incoterms 2010 only applicable for sea and inland waterway transport: FAS : free alongside ship FOB : free on board CFR : cost and freight CIF : cost, insurance and freight

Comparison list (Incoterms 2000 versus 2010) Incoterms 2000 EXW Ex Works FCA Free Carrier FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost Insurance and Freight CPT Carriage Paid To Incoterms 2010 EXW Ex Works FCA Free Carrier FAS Free Alongside Ship FOB Free On Board CFR Cost and Freight CIF Cost Insurance and Freight CPT Carriage Paid To

CIP Carriage and Insurance Paid to CIP Carriage and Insurance Paid to DAF Delivered At Frontier DES Delivered Ex Ship DEQ Delivered Ex Quay DDU Delivered Duty Unpaid DDP Delivered Duty Paid DAT Delivered At Terminal DAP Delivered At Place DDP Delivered Duty Paid

EXW (+the named place) Ex-Works Ex means from. Works means factory, mill or warehouse, which is the seller's premises. EXW applies to goods available only at the seller's premises. Buyer is responsible for loading the goods on truck or container at the seller's premises; and for the subsequent costs and risks. In practice, it is not uncommon that the seller loads the goods on truck or container at the seller's premises without charging loading fee. In the quotation, indicate the named place (seller's premises) after the acronym EXW, for example EXW Kobe and EXW San Antonio. Ther term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works. FCA (+the named point of departure) Free Carrier The delivery of goods on truck, rail, car or container at the specified point (depot) of departure, which is usually the seller's premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller's expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. In the aire shipment, technically speaking, goods placed in the custody of an air carrier is considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment. FAS (+the named port of origin) Free Alongside Ship Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller's expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks. FOB (+the named port of origin) Free on Board The delivery of goods on board the Vessel at the named port of origin (loading), at seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

CFR (+the named port of destination) Cost and Freight The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR formerly written as C&F. CIF (+the named port of destination) Cost, Insurance & Freight The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the import customs clearance and other costs and risks. CPT (+the named place of destination) Carriage Paid To The delivery of goods to the named place of destination (discharge) at seller's expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks. CIP (+the named place of destination) Carriage and Insurance Paid to The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller's expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks. DAT (+the named place destination) Delivered at Terminal - This means the seller delivers (or meets their obligation) when the goods is unloaded from the arriving means of transportation and are placed at the disposal of the buyer at a named terminal at the named port or place of the destination. Terminal includes any place, such as quay, warehouse, container yard or road, rail or air cargo terminal. - The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. - If the seller should bear the risks and costs involved in transporting and handling the goods from the terminal to another place, then DAP or DDP should be used - DAT requires the seller to clear the goods for export, but has no obligation to clear the goods for import or pay any duty or carry out import customs formalities

DAP (+the named place destination) Delivered at Place - The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the named place of destination. - The seller bears all risks involved with bringing the goods to the named place. - If the seller incurs costs for unloading under its contract of carriage, it cannot recover that from the buyer unless otherwise agreed upon between the parties. - DAP requires the seller to clear the goods for export but has no obligation to clear goods for imports, or pay duty or carry out import customs formalities. DDP (+the named point of destination) Delivered Duty Paid The seller is responsible for most of the expenses, which include the cargo insurance, import customs clearance, and payment of customs duties and taxes at buyer's end, and the delivery of goods to the final point at destination, which is often the project site or buyer's premises. The seller may opt not to insure the goods at his/her own risks. In the export quotation, indicate the point of destination (discharge) after the acronym DDP, for example DDP Bujumbura and DDP Mbabane. Note: As DAF (Delivered at Frontier) , DES (Delivered Ex-ship), DEQ (Delivered Ex-Quay) & DDU (Delivered Duty Unpaid) are covered under DAP, DAT and DDU, above four terms have become redundant. Hence, removed. Changes of rules to existing terms: FOB and FAS - No major changes to the general definition and rules. - Ships Rail terminology is no longer mentioned for FOB the reference is now loaded on board the vessel. - The transfer of Risk now follows the transfer of Cost.

FOB is no longer recommended for containerized shipments because these are meant for cargo that are truly delivered by the seller (or appointed agent/trucker) to the actual vessel side. Containers are now considered delivered once they are gated-in the port and then are staged into a slot for loading later and therefore Incoterms do not really apply.

CPT and CIP - If the cost of unloading is part of the freight arrangement the buyer should not pay for this. - The seller should inform the buyer on what is included in the sellers freight agreement with the transporting company. CFR and CIF - If the cost of unloading is part of the freight arrangement the buyer should not pay for this. - The seller should inform the buyer on what is included in the sellers freight agreement with the transporting company.