Incoterms

2010 Rules
For some time Incoterms

rules have consisted of 13 terms. Incoterms

2010 rules eliminate four of the

previously-existing terms DDU, DES, DEQ and DAF! and add t"o ne" terms DAT and DAP!# resulting in a
total of 11 terms. $he ne" version is made availa%le for %oth domestic and international use& contracting parties
should# ho"ever# revie" the applica%ility of these terms to the domestic environment prior to applying them.
$he terms are structured to increase incrementally the o%ligations control# ris' and cost! on one party "hile
decreasing the o%ligations of the other# depending on the speci(c term chosen. )ach term clari(es "hich party is
responsi%le for*
Inland freight transportation "ithin the origination country!
For"arder selection
)xport clearance
+arrier selection and scheduling
International freight
Import clearance
,n-carriage transportation "ithin the destination country!
-elivery occurs and risk of loss transfers! at the point designated %y the term selected. $ransfer of title is .,$
covered %y any of the Incoterms

2010 rules and must %e separately speci(ed %y the parties.

Incoterms

2010 rules can %e divided into t"o groups / multi-modal availa%le for multiple forms of transport#
including land# air and "ater"ay transportation! and single mode applica%le only to "ater"ay transportation!.
$he terms in each group are listed on page 2 in order of increasing responsi%ility for the seller and
correspondingly decreasing responsi%ility for the %uyer!. 0o# for example# using the term )12 ma'es the seller
responsi%le only for ma'ing the goods availa%le at its o"n premises& delivery occurs and ris' of loss transfers at
that point. 2hen the term --3 is used# the seller %ecomes responsi%le for everything except on-carriage "here
the location for delivery is not the %uyer4s actual location. --3 is the only Incoterms

rule that ma'es the seller

responsi%le for import clearance.
TERM DEFINITION
$he multi-modal availa%le for multiple forms of transport# including land# air and "ater"ay transportation! terms are*
/ 5nchanged
in
Incoterms

2010 rules
Ex works (EXW) named place seller4s location! /
6n Incoterms

rule under "hich the price that the seller 7uotes applies only at the point of origin.
$he %uyer ta'es possession of the shipment at the point of origin and %ears all costs and ris's
associated "ith transporting the goods to the destination. $his Incoterms

rule is regarded as the

most open-ended. $here is generally nothing speci(c regarding delivery and there is a mutually
convenient pic'up time for exporter and importer agreed upon. 5sed for any mode of transport.
See Also Incoterms

rules

Compare: -elivered -uty 3aid
/ 5nchanged
in
Incoterms

2010 rules
Free arr!er A" (FA) named place seller4s country! /
6n Incoterms

rule under "hich seller delivers goods# cleared for export# to the %uyer-designated
carrier at a named location. 5sed for any mode of transport. 0eller must load goods onto the %uyer8s
carrier. $he 'ey document signifying transfer of responsi%ility is receipt %y carrier to exporter.
See Also: Incoterms rules
/ 5nchanged
in
Incoterms

2010 rules
arr!a#e Pa!d To (PT) named place of destination /
6n Incoterms

rule used for any mode of transportation. 9uyer assumes title and ris' of loss "hen
goods are delivered to the carrier. 0eller pays shipping to destination. +3$ delivery ta'es place "hen
the exporter hands over goods to the carrier. $he exporter is given %ill of lading or e7uivalent
document air "ay%ill# sea "ay%ill# multi-modal %ill of lading!.
See Also: Incoterms rules
Compare: +arriage and Insurance 3aid $o
/ 5nchanged
in
arr!a#e Ins$ran%e Pa!d (IP) named place of destination /
6n Incoterms

rule under "hich seller delivers goods to seller-designated carrier# pays cost of
:uide to the Incoterms

2010 Rules / 2011 5pdates 3age & of '

;Incoterms

is a registered trademar' of the International +ham%er of +ommerce.

TERM DEFINITION
Incoterms

2010 rules
carriage to named destination and must o%tain insurance to cover %uyer4s ris' of loss in transit.
9uyer %ears ris' of loss and any additional costs after seller4s delivery to carrier# protected %y seller4s
insurance. 5sed for any mode of transportation& same as +3$# %ut seller pays for insurance and
names %uyer as %ene(ciary.
See Also: Incoterms rules
Compare: +arriage 3aid $o
/ )liminated
in
Incoterms

2010 rules
De(!)ered D$"* Un+a!d (DDU) named place of destination /
6n Incoterms

rule under "hich seller %ears the ris' and expense of getting the goods to a named
destination# %ut excluding duties# taxes and other o<cial charges paya%le on import. 0ome
variations on --5 are possi%le if the seller is to pay some of the import charges. -elivery ta'es place
"hen the exporter places goods at the disposal of the importer in city of delivery. $here is no
corresponding transportation document# although a %ill of lading is usually used. 5sed for any mode
of transportation. 0ame as -elivered )x =uay -)=!# except that the %uyer and seller can specify
delivery of the goods to a "arehouse or other destination point. 0eller must arrange for ground
transport in the %uyer8s country. 9uyer %ears responsi%ility for import customs duties.
$his term is de(ned in the Incoterms

2000 rules. It has %een eliminated in the Incoterms

2010
rules# %ut the Incoterms 2000 rules can still %e used %y contracting parties if they so agree.
See Also: Incoterms

rules
Compare: -elivered -uty 3aid# -elivered )x =uay# -elivered at $erminal# -elivered at 3lace
/ .e" in
Incoterms

2010 rules
De(!)ered a" Ter,!na( (DAT) named place of destination /
6n Incoterms

rule under "hich seller delivers goods to a named terminal in the destination
country. 9uyer is responsi%le for import clearance and any further in-country carriage. $his term is
one of t"o terms considered to %e replacement terms for -elivered -uty 5npaid --5!# "hich is
eliminated from Incoterms 2010.
See Also* Incoterms rules
Compare* -elivered at 3lace# -elivered -uty 5npaid# -elivered -uty 3aid
/ .e" in
Incoterms

2010 rules
De(!)ered a" P(a%e (DAP) named place of destination /
6n Incoterms

rule under "hich seller delivers goods to the %uyer4s facility or another named
location other than a terminal! in the destination country. 9uyer is responsi%le for import clearance
and any further in-country carriage. $his term is one of t"o terms considered to %e replacement
terms for -elivered -uty 5npaid --5!# "hich is eliminated from Incoterms 2010 rules.
See Also* Incoterms rules
Compare* -elivered at $erminal# -elivered -uty 5npaid# -elivered -uty 3aid
/ 5nchanged
in
Incoterms

2010 rules
De(!)ered D$"* Pa!d (DDP) named place of destination /
6n Incoterms

rule under "hich seller exporter! is responsi%le for all costs involved in delivering
the goods to a named place of destination and for clearing customs in the country of import. 0eller
provides literally door-to-door delivery# including customs clearance in the port of export and the
port of destination. $hus# seller %ears the entire ris' of loss until goods are delivered to the %uyer8s
premises. Full term is >--3 named place of destination.> -elivery ta'es place "hen exporter places
goods at disposal of importer in city of delivery. $here is no corresponding transportation document#
although %ill of lading is usually used. 5sed for any mode of transportation. 0eller %ears all ris' and
customs responsi%ilities until the goods are delivered to a speci(ed location and clear import
customs. 9uyer assumes ris' and title "hen the goods are delivered to the %uyer8s speci(ed
location.
See Also: Incoterms rules
Compare: -elivered -uty 5npaid# )x 2or's# Free ,n 9oard 5++!# -elivered at $erminal# -elivered at
3lace
$he single mode terms "hich can only %e used "ith "ater"ay transportation! are*
/ 5nchanged
in
Incoterms

2010 rules
Free A(on#s!de S-!+ (FAS) named vessel at loading port /
6n Incoterms

rule used only for maritime trade transport %y vessel! 5nder this arrangement# the
supplier agrees to deliver the goods in proper condition alongside the vessel. $he %uyer assumes all
su%se7uent ris's and expenses after delivery to the pier. This term can only be used for waterway
:uide to the Incoterms

2010 Rules / 2011 5pdates 3age . of '

;Incoterms

is a registered trademar' of the International +ham%er of +ommerce.

TERM DEFINITION
transportation.
See also* Incoterms rules
Compare* F.6.0 / 5++
/ 5nchanged
in
Incoterms

2010 rules
Free On /oard (FO/) named vessel at loading port /
6n Incoterms

rule used only for maritime trade transport %y vessel! under "hich responsi%ility for
the shipment transfers from exporter to importer "hen shipment is loaded a%oard the vessel. 0eller
must load the goods onto the ship. +enturies of maritime tradition says that the F,9 point is the
0hip8s Rail# also referred to as >Freight on 9oard.> $his is the older maritime term of trade. If the
freight falls "hile loading# ho"ever# it is the exporter8s responsi%ility if it lands on 7uay# %ut it is the
importer8s responsi%ility if it lands on ship. $he documentation of delivery is the ocean %ill of lading
or sea "ay%ill. This term can only be used for waterway transportation.
See Also: Freight +ollect# Incoterms rules
Compare: Free ,n 9oard / 5++
/ 5nchanged
in
Incoterms

2010 rules
os" 0 Fre!#-" (FR) named port of destination
6n Incoterms

rule under "hich goods are considered to %e >delivered> and %uyer assumes ris' of
loss! "hen they pass the ship8s rail in the port of shipment. $he seller is responsi%le for clearing the
goods for export and for costs and freight to %ring the goods to the destination port. This term can
only be used for waterway transportation.
0ee 6lso* Incoterms rules
+ompare* +.?F. / 5++# +.I.F / 5++# +IF / Incoterm# +arriage 3aid $o
/ 5nchanged
in
Incoterms

2010 rules
os", Ins$ran%e 0 Fre!#-" (IF) named port of destination /
$his Incoterms

rule is similar to +ost ? Freight +FR! "here goods are considered to %e >delivered>
and %uyer assumes ris' of loss! "hen they pass the ship8s rail in the port of shipment. $he seller is
responsi%le for clearing the goods for export and for costs and freight to %ring the goods to the
destination port. 5nder +IF the seller must also o%tain marine insurance against %uyer8s ris' of loss
or damage in transit. This term can only be used for waterway transportation.
See Also: Incoterms rules
Compare: +.?F. / 5++# +.I.F / 5++# +ost and Freight# +arriage Insurance 3aid
/ )liminated
in
Incoterms

2010 rules
De(!)ered Ex S-!+ (DES) named port
6n Incoterms

rule under "hich seller4s delivery o%ligation is satis(ed "hen goods are placed at
%uyer4s disposition on %oard a vessel at a designated destination port# not cleared for import.
$his term is de(ned in the Incoterms

2000 rules. It has %een eliminated in Incoterms

2010 rules#
%ut Incoterms

2000 rules can still %e used %y contracting parties if they so agree.
See Also: Incoterms

rules
Compare: -elivered )x =uay
/ )liminated
in
Incoterms

2010 rules
De(!)ered Ex Q$a* (DEQ) named port
6n Incoterms

rule used for ship transport. 0igni(es that the seller is responsi%le for all ris's and
costs incurred to have the goods delivered and unloaded at a named port of destination. $his
includes the o%ligation to contract and pay for freight and transportation costs %y sea or inland
"ater"ay# unloading fees# export and import licensing fees# and other taxes unless speci(cally
excluded in the contract!. $he %uyer is o%ligated only to assist in o%taining any import license or
other o<cial authori@ation necessary to import the goods.
$his term is de(ned in the Incoterms

2000 rules. It has %een eliminated in the Incoterms

2010
rules# %ut Incoterms

2000 rules can still %e used %y contracting parties if they so agree.
See Also: Incoterms

rules
Compare: -elivered )x 0hip
/ )liminated
in
Incoterms

2010 rules
De(!)ered a" Fron"!er (DAF)
6n Incoterms

rule under "hich seller8s delivery o%ligation is satis(ed "hen goods are placed at
%uyer8s disposition on arriving means of transportation# cleared for export %ut not import# and not
unloaded. -elivery ta'es place "hen the vehicle is placed at disposal of importer at designated
%order city. $here is no speci(c documentation for transfer# although some carriers provide some.
:uide to the Incoterms

2010 Rules / 2011 5pdates 3age 1 of '

;Incoterms

is a registered trademar' of the International +ham%er of +ommerce.

TERM DEFINITION
5sed for any mode of transportation. 9uyer ac7uires title# ris' and responsi%ility for import customs
clearance.
$his term is de(ned in the Incoterms

2000 rules. It has %een eliminated in the Incoterms

2010
rules# %ut the Incoterms

2000 rules can still %e used %y contracting parties if they so agree.

See Also: Incoterms

rules
:uide to the Incoterms

2010 Rules / 2011 5pdates 3age ' of '

;Incoterms

is a registered trademar' of the International +ham%er of +ommerce.