Incoterms

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

Departure
EXW EX Works
Main carriage not paid by seller
FCA Free Carrier
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
Arrival
DAF Delivered At Frontier
DES Delivered EX Ship
DEQ Delivered EX Quay
DDU Delivered Duty Unpaid
DDP Delivered Duty Paid