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INCOTERMS are the rules created by ICC-International Chamber of Commerce, which determine the types of delivery in international trade. These rules regulate the expenses and responsibilities between the importer and exporter in international trade. 

Types of Delivery/ Classification and Explanations

1- Types of Delivery Used for All Types of Transports

EXW – Ex Works

Delivery at the workplace of the exporter; It is the delivery of goods at the designated location such as the warehouse or factory of the exporter, with all expenses and risks belonging to the importer.

FCA – Free Carrier

Delivery to the Carrier; It is the delivery of goods to the carrier determined by the importer, at the designated location in exporter’s country.

CPT – Carriage Paid To

Delivery with its Freight Paid It is the delivery where the freight of the designated vehicle is paid by the exporter and insurance and other expenses belong to the importer.

CIP – Carriage and Insurance Paid To

Delivery with its Freight and Insurance Paid: It is the type of delivery where the exporter pays the freight and insurance expenses until the designated point in importer’s country.

DAT – Delivered at Terminal

Delivery at Terminal; It is the delivery of goods in importer’s country at the designated harbour/terminal by unloading from the vehicle, with all expenses and risks belonging to the exporter.

DAP – Delivered at Place

Delivery at the Designated Location; The goods are delivered in importer’s country and to the designated address, with all expenses paid except from taxes.

 

DDP – Delivered Duty Paid

Delivery with Customs Duties Paid It is the delivery of goods in importer’s country with all expenses and customs duties paid.

2 – Types of Delivery used at Sea and Inland Waters

FAS – Free Alongside Ship

Delivery near the Ship; It is the delivery of goods at the dock or loading area to be loaded onto the designated vessel.

FOB – Free on Board

Delivery at Ship (Shipboard); It is the type of delivery where the goods are loaded onto the designated vessel and costs and responsibilities such as carriage, insurance are handed over to the importer.

CFR –   Cost and Freight

Delivery with the Freight Paid; It is the delivery where the freight of goods belonging to the vessel is paid by the exporter, and insurance and other expenses belong to the importer.

CIF – Cost, Insurance and Freight

Delivery with Expenses, Freight and Insurance Paid; It is the delivery of goods where the loading charges and  the carriage cost until the designated delivery area in importer’s country and insurance expenses are paid.