Which Incoterm To Use

• Knowing which Incoterm to use can be confusing at first.
  • For this reason here is a chart of the terms and where they are applicable.

• Group E: Departure Term.
• EXW - EX WORKS applicable for all modes of transport
  • Example: EX WORKS FACTORY Monterrey, California, Incoterms 2000

• Group F: Shipment Terms - Main carriage unpaid.
• FCA - FREE CARRIER applicable for all modes of transport
  • Example: FCA Guadalaja, Incoterms 2000
• FAS - FREE ALONGSIDE SHIP applicable for sea or inland waterway transport
• FOB - FREE ON BOARD applicable for sea or inland waterway transport
  • Example: FOB Long Beach, Incoterms 2000

• Group C: Shipment Terms - Main carriage paid.
• CFR - COST AND FREIGHT applicable for sea or inland waterway transport
• CIF - COST, INSURANCE AND FREIGHT applicable for sea or inland waterway transport
• CPT - CARRIAGE PAID TO applicable for all modes of transport
• CIP - CARRIAGE AND INSURANCE PAID TO applicable for all modes of transport

• Group D: Arrival Terms.
• DAF - DELIVERED AT FRONTIER applicable for all modes of transport, but recommended for land transport
• DES - DELIVERED EX SHIP applicable for sea or inland waterway transport
• DEQ - DELIVERED EX QUAY applicable for sea or inland waterway transport
• DDU - DELIVERED DUTY UNPAID applicable for all modes of transport
  • Example: DDU Frankfurt, Messe Haus GmbH Warehouse #1 Incoterms 2000
• DDP - DELIVERED DUTY PAID applicable for all modes of transport

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© 2004 John Michael Pierobon

Notes