Incoterms are a set of the most commonly used terms in international trade transportation. They aim to standardise the terminology used for transportation in international trade and map out the obligations between Importer and Exporter. Incoterms define the method of delivery of the goods, state what charges are included in the Exporter's price and define the responsibilities of the parties involved. Incoterms are published by the International Chamber of Commerce.

International Chamber of Commerce:
14/15 Belgrave Square,
London,
SW1X 8PS.

Telephone: 020 7823 2811
Facsimile: 020 7235 5447.

Commonly used terms:

EXW (Ex Works)
Goods made available to the Importer at the Exporter's premises.

FCA (Free Carrier)
Costs of delivery, cleared for export, into the charge of the carrier named by the Importer at the named place.

FAS (Free Alongside Ship)
All costs up to delivery on quay at the named port of shipment.

FOB (Free On Board)
All costs up to delivery over the ship's rail at the named port of shipment.

CFR (Cost and Freight)
Cost of goods and freight, duty unpaid, to a named port of destination. Insurance is covered by the Importer.

CIF (Cost, Insurance and Freight)
Cost of goods, insurance and freight, duty unpaid, to a named port.

CPT (Carriage Paid To)
Costs of carriage of the goods, duty unpaid to the named destination. Insurance is carried by the Importer.

CIP (Carriage and Insurance Paid To)
Costs of carriage and insurance of goods, duty unpaid to the named destination.

DAF (Delivered At Frontier)
Costs of delivery, duty unpaid at the named place at the frontier.

DES (Delivered Ex Ship)
Costs of delivery on board the vessel, duty unpaid, at the named port of destination.

DEQ (Delivered Ex Quay)
Costs of delivery to the named port of destination.

DDU (Delivered Duty Unpaid)
Costs of delivery paid up to a named place in the country of importation. Importer pays the import duty.

DDP (Delivered Duty Paid)
Costs of delivery, including duty, paid up to a named place in the country of importation.