Incoterms (International Commercial Terms)

Incoterms; ICC – The rule that determines distribution of costs between sides during the transportation process is organized by ICC.

Incoterms articles are stated with abbreviations of initial letters in English.

Incoterms, which was first released in 1636, have been revised depending on conditions in 1963, 1967, 1976, 1980, 1990 and 2000. The current Incoterm is the 2010 version and it has become valid in 1th January 2011. As long as it is stated in contracts and documents, all of its versions are available to be used. Rules contain judicial eligibilities.

In contracts and documents, loading place and incoterms version should be stated.

 Three important changes between 2019 and 2000 incoterms;

 E (EXW),

F (FOB, FCA, FAS),

C (CFR, CIF, CPT, CIP),

D (DAF, DES, DEQ, DDU, DDP) Bundling;

Rules related to all types of transportation (EXW, FCA, CPT, CIP, DAF, DDU, DDP)

Rules related to sea freight (FAS, FOB, CFR, CIF, DES, DEQ) has changed again.

DAP has subrogated DAF, DES, DDU, and DAT has subrogated DEQ

In the 2000s version, a new condition promulgated in FOB, CFR, CF incoterms that the loads must not extend the ship’s rail and the freightage must be loaded properly.

 Incoterms / Classification and Explanations:

 Incoterms for every type of freights

EXW – Ex Works

The freightage is delivered in a selected a place like storage or factory and the importer is the responsible for every risks.

 FCA – Free Carrier

Free carrier is a term meaning that the seller of the goods delivers goods to a destination where the buyer selects.

 CPT – Carriage Paid To

Carriage paid to means that the transportation expenses are paid by the seller and the insurance cost and other costs belong to the importer.

 CIP – Carriage and Insurance Paid To

Carriage and insurance paid to means that the transportation expenses and insurance costs are paid by the seller.

 DAT – Delivered at Terminal

Delivered at the terminal means that all of the transportation expenses are paid by the seller.

DAP – Delivered at Place

Delivered at place means that the freightage is delivered to the importer’s country and its expenses, except taxes, are paid.

 DDP – Delivered Duty Paid

Delivered duty paid means that the freightage is delivered to importer’s country without any costs.