INCOTERMS 2016
The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, there are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
The Incoterms 2016 are organized into two categories:
FOR ALL MODES OF TRANSPORT
- 1EXW – Ex Works
- 2FCA – Free Carrier
- 3CPT – Carriage Paid To
- 4CIP – Carriage Paid, Insurance
- 5DAT – Delivered at Terminal (new)
- 6DAP – Delivered at Place (new)
- 7DDP – Delivered Duty Paid
ONLY BY THE SEA
- 1FAS – Free Alongside Ship
- 2FOB – Free On Board
- 3CFR – Cost and Freight
- 4CIF – Cost, Insurance and Freight
For a more clear vision of INCOTERMS, refer to the following table:
