Thirteen standardized definitions of commonly used shipping and trade terms. The International Chamber of Commerce (ICC) establishes and publishes the Incoterms. To use the terms correctly, trade practitioner should consult the ICC for the complete, authorized definitions.
What is important to understand with Incoterms is the point at which time the title transfers from one party to another.
COMMONLY USED INCOTERMS
|Main carriage not paid by seller|
|FAS||Free Alongside Ship|
|FOB||Free on Board: Title transfers to buyer at time material is loaded at the origination site|
|Main carriage paid by seller|
|CFR||Cost and Freight|
|CIF||Cost, Insurance and Freigt|
|CPT||Carriage Paid To|
|CIP||Carriage and Insurance Paid to|
|DAF||Delivered At Frontier|
|DES||Delivered EX Ship|
|DEQ||Delivered EX Quay|
|DDU||Delivered Duty Unpaid|
|DDP||Delivered Duty Paid|