– consists of only one term of delivery “EXW” – ex-works – and consists in granting goods by the seller to the buyer directly at the enterprise. All other duties, such as transportation or customs cleaning, completely lay down on the buyer. In commercial documents such delivery is described as “EXW name of the place”. These conditions of deliveries can be used with any kinds of transport as in fact it doesn’t matter how the buyer will transport goods.


– means payment of the main freight by the seller. Thus, after the conclusion of the agreement of purchase and sale of goods the seller is obliged to give the goods to a carrier which will carry out transportation of goods. This group of terms can be used when transporting by any kinds of transport and includes four basic terms of delivery:

  • “CFR” – “the cost and freight” – in this case the seller is obliged to pay the price of goods transportation to the destination.
  • “CIF” – “cost, insurance and freight” – unlike the previous terms of delivery in this case seller is also obliged to pay the expenses for insurance of the transported freights.
  • “CIP” – “freight, carriage and insurance are paid till” – this term can be used in case of introduction into process of transportation the intermediate destination before which achievement financial shipping charges and to insurance of freight will be paid by the seller.
  • “CPT” – “freight, carriage are paid till”. As it is easy to notice, this term differs from the previous one by the seller’s obligation to pay insurance services.

– doesn’t provide payment of the main freight by the seller. At these terms adoption of delivery the seller reports goods to the first carrier, and all questions of payment and relationship with a carrier lay down already on the buyer. This category of terms, except the term “FCA”, is applied only when transporting is done by sea or inland water transport. This group includes three terms:

  • “FCA” – “free carrier” – is applied when transporting by any kinds of transport. Thus the seller bears responsibility on land delivery of freight to port of sending.
  • “FAS” – “free along a vessel board”. In this case the seller pays both the intra port forwarding and accompanying services, for an exception of loading of goods aboard the vessel.
  • “FOB” – “free (freely) onboard”. When using this basis of delivery the moment of change of responsibility between the seller and the buyer comes after loading of goods aboard the vessel transporting.



– is characterized by the concept “arrival”. At its use the seller after the conclusion of the agreement of purchase and sale has to provide goods to the buyer to the destination coordinated with him. It can be either a concrete settlement or the logistic terminal. Depending on the reached agreements in the country of appointment either the seller or the buyer can pay the customs duties. These basic conditions are applied when transporting by any kinds of transport. This group was the most significantly reconsidered in comparison with the previous edition the Incoterms 2000. Four terms of delivery were expelled from group: “DDU” – delivery without payment of fees, “DAF” – delivery to border, “DEQ” – delivery from pier and “DES” – delivery from the vessel. Now the group of deliveries of the category “D” includes three basic conditions:

  • “DAT” – delivery on the terminal. Introduction of this term of delivery was caused by universal development of logistic centers and terminals which are links between the different countries now.
  • “DAP” – delivery in point. This basic term of delivery according to the contents practically coincides with the previous one, however, the concrete settlement is specified as a point of destination.
  • “DDP” – delivery with payment of fees. This condition finishes a line of the basic terms of delivery provided the Incoterms 2010 and provides almost full responsibility of the seller for the international delivery of goods. In this case the seller is responsible not only for transportation of goods, but also for its customs registration in the country of arrival (the country of destination).
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