Delivery Terms

The first class includes seven Incoterms 2010 rules, which may be applied irrespective of chosen mode of transport and its quantity. This class includes:

In the second class of Incoterms 2010 rules, the delivery point and the place to which the goods are carried to the buyer are both ports that is why this class is called «For sea and inland water transport».

The number of Incoterms 2010 rules was reduced from 13 to 11 compared to Incoterms 2000.

It was achieved by introduction of two new rules which could be applied irrespective of the agreed mode of transport: DAT (delivered at terminal), DAP (delivered at place) instead of the rules DAF, DES, DEQ and DDU in Incoterms 2000.

Incoterms 2010

This revision comes into force on January 01, 2011.

Incoterms 2010 are international rules accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade.

The scope of Incoterms 2010 extends on the rights and obligations of the parties of the contract of purchase and sale in delivery of goods (goods delivery terms). Here, there is a complete list of Incoterms 2010 terms and necessary comments to them.

Differences between new revisions of incoterms 2010 and former incoterms 2000:

Terms: DAP и DAT:: In Incoterms 2010 the Rules have been reduced from 13 to 11 terms. Therewith, two new terms have been created (DAP — delivered at place, DAT — delivered at terminal), which may be used as multimodal. The four terms less used in practice were cancelled (DAF, DES, DEQ, и DDU).

The term DAT (delivered at terminal) replaces the term DEQ: the goods, having been unloaded from the arriving means of transport, are placed at the buyer’s disposal. DAT, unlike DEQ, is applicable to multimodal transportation. According to the logistics export, delivery at terminal DAT meets the logistics practice in port.

The term DAP (delivered at place) is a general term for which it is important to name the place of destination. The term DAP replaces three terms: DAF, DES, DDU, and provides that the goods are delivered to the buyer ready for unloading (in our conditions for transshipment under customs control or for customs clearance).

New costs and risks in FOB, CFR and CIF: in delivery terms FOB (Free on Board), CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) the costs and risks are provided otherwise. In Incoterms 2000, in these three terms, the risk transferred upon delivery onboard the ship, and in Incoterms 2010m, the risk transfers upon full loading onboard the ship (responsibilities and risk transfer are described below).

Category E

Shipment

EXW

Any mode of transport

  • EX Works ( ... named place)
  • Risk transfer: when goods made available at the seller’s premises
  • Export customs clearance: buyer’s responsibility
  • Import customs clearance: Buyer’s responsibility

Category F

Main carriage is not paid by the seller

FCA

Any mode of transport

  • Free Carrier (...named place)
  • Risk transfer: goods transferred to the carries at the seller’s warehouse
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

FAS

sea and inland water transport

  • Free Alongside Ship (... named port of shipment)
  • Risk transfer: goods placed alongside the ship
  • Export customs clearance: Seller’s responsibility

FOB

sea and inland water transport

  • Free On Board (... named port of shipment)
  • Risk transfer: full loading on board
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

Category C

Main carriage is not paid by the seller

CFR

Sea, inland and water transport

  • Cost and Freight (...named port of destination)
  • Стоимость и фрахт (...название места)
  • Risk transfer: goods made available at the seller’s warehouse
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

CIP

Any mode of transport

  • Carriage and Insurance Paid To (...named port of destination)
  • Risk transfer: goods placed alongside the ship
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

CPT

Any mode of transport

  • Carriage Paid To (... named place of destination)
  • Risk transfer: full loading on board
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

Category D

Delivery

DAT

Any mode of transport

  • Delivered At Terminal (... named terminal of destionation)
  • Risk transfer: goods made available to the carrier at the seller’s warehouse
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

DAP

Any mode of transport

  • Delivered At Point (... named terminal of destionation)
  • Risk transfer: goods placed alongside the ship
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility

DDP

Any mode of transport

  • Delivered Duty Paid (... named place of destination)
  • Risk transfer: full loading on board
  • Export customs clearance: Seller’s responsibility
  • Import customs clearance: Buyer’s responsibility