Incoterms

What are Incoterms?

Incoterms (International Commercial Terms) are standardised international commercial clauses. They are prepared and published by the International Chamber of Commerce (current version: Incoterms 2010). The parties (vendor, buyer) of a commercial transaction may agree upon a clause of these Incoterms. With the help of Incoterms, the fundamental vendor and buyer obligations, particularly the transfer of risk and costs of a delivery, are regulated between the commercial partners.

What is regulated in the Incoterms?

With the agreement of a delivery clause, the following points are clarified between the contract partners:
The place and time of the transfer of risk assumption for possible destruction (or damage, loss, theft, etc.) of the goods


Distribution of delivery costs


Duties for export or import customs clearance

What Incoterms are there?

Below you will find an overview:
This information is a summary, which does not reflect the full scope of rights and obligations of the contracting parties.

Explanation of Incoterms for road transport

EXW - Ex Works (... Named place of delivery)

The vendor bears no costs and no risk ex works/warehouse. The vendor must not load the goods on to a collecting means of transport, nor must they clear them for export (export customs clearance), if this is required.
EXW - Ex Works

FCA - Free Carrier (... Named place of delivery)

The buyer assumes the costs and risk from the carrier at the place of departure. The vendor commits to loading the goods on to a collecting means of transport and, if required, clearing the goods for export (export customs clearance).
FCA - Free Carrier

CPT - Carriage paid to (... Named place of destination)

The vendor has to conclude the transport contract and bears the costs to the named place of destination. If required, the vendor is obliged to clear the goods for export (export customs clearance). The risk (loss, damage) is borne by the buyer from the handover of goods to the first carrier at the place of departure. However, import customs clearance, if required, must be undertaken by the buyer!
CPT - Carriage paid to

CIP - Carriage and Insurance paid to (... Named place of destination)

The vendor has to conclude the transport contract and bears the costs to the named place of destination. If required, the vendor is obliged to clear the goods for export (export customs clearance). The vendor also concludes an insurance contract against the risks borne by the buyer (loss, damage). The risk (loss, damage) is borne by the buyer from the handover of goods to the first carrier at the place of departure. However, the import customs clearance, if required, must be undertaken by the buyer!
CIP - Carriage and Insurance paid to

DAT - Delivered at Terminal (... Named terminal in the port/place of destination)

Vendor shall bear the costs and risks of delivery to the named terminal/location, including the unloading of the incoming means of transport. However, the import customs clearance, if required, must be undertaken by the buyer!
DAT - Delivered at Terminal

DAP - Delivered at Place (... Named place of destination)

The vendor shall make the delivery of goods available to the buyer on the incoming means of transport and ready to unload at the named place of destination in the importing country and shall bear the risks up to that point. Import customs clearance and unloading shall be undertaken by the buyer!
DAP - Delivered at Place

DDP - Delivered Duty paid² (... Named place of destination)

The vendor shall make the duty-paid goods available to the buyer on the incoming means of transport and ready to unload at the named place of destination in the importing country and shall bear the risks up to that point. The vendor is also obliged to pay all duties and customs formalities for both import and export. The unloading is undertaken by the buyer!
DDP - Delivered Duty paid²
² If, however, the parties wish to exclude certain duties resulting from the import of goods (e.g. the VAT) from the obligations of the vendor, this should be made clear through a corresponding express amendment to the purchase contract (original quote from the Incoterms 2000) or DAP should be used.

Further information:

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