Incoterms

Culture and language may be different but with incoterms you'll be sure to understand your fellow traders.

Incoterms (International Commercial terms) help ease the communication difficulties between traders from around the world.

Introducing Incoterms 2000
This Incoterms eBook will serve as a useful introductory text for traders and others who need to learn about these complex symbols.

They allow the different parties involved in an import/export transaction to be clear at what points ownership and payment responsiblities transfer from one party to the other.

Incoterms relate to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold, but excluding "intangibles" like computer software.

There are 13 Incoterms each represented by a 3 letter abbreviation.

EXW	EX Works (... named place)
FCA	Free Carrier (... named place)
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)
CPT	Carriage Paid To (... named place of destination)
CIP	Carriage And Insurance Paid To (... named place of destination)
DAF	Delivered At Frontier (... named place)
DES	Delivered EX Ship (... named port of destination)
DEQ	Delivered EX Quay (... named port of destination)
DDU	Delivered Duty Unpaid (... named place of destination)
DDP	Delivered Duty Paid (... named place of destination)

The International Chamber of Commerce, ICC, recommends that 'Incoterms 2000' be referred to whenever the terms are used.

Correct usage would be: FOB London Incoterms 2000