Incoterms 2010: Any Mode of Transport

Incoterms 2010
The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used
in Incoterms 2000 by introducing two new rules ("Delivered at Terminal", DAT; "Delivered at Place",
DAP) that replace four rules of the prior version ("Delivered at Frontier", DAF; "Delivered Ex Ship",
DES; "Delivered Ex Quay", DEQ; "Delivered Duty Unpaid", DDU). [2] In the prior version, the rules were
divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two
categories based only on method of delivery. The larger group of seven rules applies regardless of
the method of transport, with the smaller group of four being applicable only to sales that solely
involve transportation over water.
Any mode of transport

The 7 rules defined by Incoterms 2010 for any mode(s) of transportation are:
EXW – Ex Works (named place of delivery)

The seller makes the goods available at his/her premises. The buyer is responsible for uploading.
This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex
Works term is often used when making an initial quotation for the sale of goods without any costs
included. EXW means that a seller has the goods ready for collection at his premises (works, factory,
warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and also bears
the risks for bringing the goods to their final destination. The seller does not load the goods on
collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at
buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure
and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording
to this effect in the contract of sale.
FCA – Free Carrier (named place of delivery)

The seller delivers goods, cleared for export, to the buyer-designated carrier at a named and defined
location. This is used for any mode of transport. The seller must load goods onto the buyer's carrier.
The key document signifying transfer of responsibility is receipt by carrier to exporter.
CPT – Carriage Paid To (named place of destination)

The seller pays for carriage. Risk transfers to buyer upon handling goods over to the first carrier at
place of shipment in the country of export.
This term is used for all kind of shipments.
CIP – Carriage and Insurance Paid to (named place of destination)

The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to
the named destination point, but risk passes when the goods are handed over to the first carrier.
DAT – Delivered at Terminal (named terminal at port or place of destination)

The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed
at the Buyer's disposal at a named terminal at the named port or place of destination. "Terminal"
includes any place, whether covered or not, such as a 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. Import clearance is done by the buyer.
DAP – Delivered at Place (named place of destination)
Seller pays for carriage to the named place, except for costs related to import clearance, and
assumes all risks prior to the point that the goods are ready for unloading by the buyer.
DDP – Delivered Duty Paid (named place of destination)

Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays
all costs in bringing the goods to the destination including import duties and taxes. The seller is not
responsible for unloading. This term is often used in place of the non-Incoterm "Free In Store (FIS)".
This term places the maximum obligations on the seller and minimum obligations on the buyer.
Sea and inland waterway transport

To determine if a location qualifies for these four rules, please refer to 'United Nations Code for Trade
and Transport Locations (UN/LOCODE)'. [Link below]
The four rules defined by Incoterms 2010 for international trade where transportation is entirely
conducted by water are:
FAS – Free Alongside Ship (named port of shipment)

The seller must place the goods alongside the ship at the named port. The seller must clear the goods
for export. Suitable only for maritime transport but NOT for multimodal sea transport
incontainers (see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or
bulk cargo.
FOB – Free on Board (named port of shipment)

The seller must load the goods on board a vessel designated by the buyer. Cost and risk are divided
when the goods are actually on board of the vessel. The seller must clear the goods for export. The
term is applicable for maritime and inland waterway transport only but NOT for multimodal sea
transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller
the details of the vessel and the port where the goods are to be loaded, and there is no reference to,
or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last
three decades ever since Incoterms 1980 explained that FCA should be used for container shipments.
It means the seller pays for transportation of goods to the port of shipment, loading cost. The buyer
pays cost of marine freight transportation, insurance, uploading and transportation cost from the
arrival port to destination. The passing of risk occurs when the goods pass the ship's rail at port of
shipments.
CFR – Cost and Freight (named port of destination)

Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is
transferred to the buyer once the goods are loaded on the vessel. Insurance for the goods
isNOT included. This term is formerly known as CNF (C&F, or C+F). Maritime transport only.
CIF – Cost, Insurance and Freight (named port of destination)

Exactly the same as CFR except that the seller must in addition procure and pay for the insurance.
Maritime transport only. freight
Allocations of costs buyer/seller according to Incoterms 2010
Carriage
Unloading Loading (Sea Unloading Loading
Export- Carriage Carriage to Import
Incoterm of truck in charges Freight/Air charges in on truck Import
Customs to port of Insurance place of customs
2010 port of in port of Freight) to port of in port of taxes
declaration export destination clearance
export export port of import import
import
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer No No
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller Buyer Buyer
CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Buyer Seller Seller Seller Buyer Buyer
DAT Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

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Incoterms 2010

Any mode of transport

EXW – Ex Works (named place of delivery)

FCA – Free Carrier (named place of delivery)

CPT – Carriage Paid To (named place of destination)

This term is used for all kind of shipments.

CIP – Carriage and Insurance Paid to (named place of destination)

DAT – Delivered at Terminal (named terminal at port or place of destination)

DDP – Delivered Duty Paid (named place of destination)

Sea and inland waterway transport

FAS – Free Alongside Ship (named port of shipment)

FOB – Free on Board (named port of shipment)

CFR – Cost and Freight (named port of destination)

CIF – Cost, Insurance and Freight (named port of destination)

FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer No No

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