Incoterms (International Commercial Terms)
Incoterms; ICC - The rules regulated by the International Chamber of Commerce, which determine the distribution of responsibilities and costs between the parties during the transportation and delivery of the goods. Incoterms are expressed in abbreviations consisting of initials of English definitions.
Incoterms, published for the first time in 1936, was revised in 1963, 1967, 1976, 1980, 1990, 2000 depending on changing conditions. The current version of Incoterms 2010, came into effect on January 01, 2011. All versions can be used provided that it is specified in the contract and documents. The rules are legally voluntary.
In the contracts and documents, the location of the installation must be specified together with the Incoterms version.
3 important changes between Incoterms 2010 version and 2000;
Delivery Types / Classification and Explanations
1 - Delivery Types Used for All Transportation Types
EXW – Ex Works
Delivery at Exporter's Workplace; All costs and risks belong to the importer and the goods are delivered at the designated place such as the exporter's warehouse or factory.
FCA – Free Carrier
Delivery to Carrier; It is the delivery of the goods to the carrier determined by the importer at the place determined in the country of the exporter.
CPT – Carriage Paid To
Carriage Fee Paid Delivery; It is the delivery where the transportation cost (freight) of the specified vehicle is paid by the exporter and the insurance and other expenses belong to the importer.
CIP – Carriage and In+surance Paid To
Handling Fee, Insurance paid Delivery; It is the delivery method that the exporter pays the transportation fee and insurance costs to the point determined in the country of the importer.
DAT – Delivered at Terminal
Delivery at the Terminal; All costs and risks belong to the exporter and the goods are unloaded and delivered from the vehicle at the port / terminal determined in the country of the importer.
DAP – Delivered at Place
Delivery at the determined place; Goods are delivered to the country of the importer and to the specified address, all taxes and taxes paid.
DDP – Delivered Duty Paid
Delivery With Customs Duties Paid; It is the delivery of the goods in the importer's country with all costs and customs duties paid.
2 – Delivery Types Used in Sea and Inland Water
FAS – Free Alongside Ship
Delivery by Ship; It is the delivery of the goods in the dock or loading area to be loaded on the specified watercraft.
FOB – Free on Board
Delivery On Board (On Board); It is the type of delivery where the goods are loaded on the specified sea vehicle and the costs and responsibilities such as transportation, insurance are transferred to the importer.
CFR – Cost and Freight
Delivery with Freight Paid; It is the delivery where the transportation cost (freight) of the determined sea vehicle is paid by the exporter and the insurance and other expenses belong to the importer.
CIF – Cost, Insurance and Freight
Costs, Freight, Insurance Paid Delivery; Delivery costs and delivery of the goods up to the delivery area determined in the country of the importer, insurance costs are covered.