1. INCO TREMS

2. INTERNATIONAL COMMERCIAL TERMS A codification of international rules for theuniform interpretation of common contractclauses in export/import transactionsdeveloped and issued by the InternationalChamber of Commerce (ICC). It defines trade contract responsibilitiesbetween buyer and seller 3. EX WORKS Means that the seller fulfills his obligation to deliver when hehas made the goods available at his premises (i.e. works,factory, warehouse, etc.) to the buyer He is not responsible for loading the goods on the vehicleprovided by the buyer or for clearing the goods for export,unless otherwise agreed The buyer bears all costs and risks involved in taking thegoods from the sellers premises to the desired destination. This term thus represents the minimum obligation for theseller 4. FREE CARRIER (forwarder) "Free Carrier" means that the seller fulfills his obligation todeliver when he has handed over the goods, cleared forexport, into the charge of the carrier named by the buyer atthe named place or point. This term may be used for any mode of transport, includingmultimodal transport. 5. FREE ALONGSIDE SHIP - FAS "Free Alongside Ship" means that the seller fulfills hisobligation to deliver when the goods have beenplaced alongside the vessel on the quay at thenamed port of shipment This means that the buyer has to bear all costs andrisks of loss of or damage to the goods from thatmoment. 6. FREE ON BOARD- FOB "Free on Board" means that the seller fulfills his obligation todeliver when the goods have passed over the ships rail at thenamed port of shipment This means that the buyer has to bear all costs and risks ofloss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export 7. CFR - COST AND FREIGHT (... named port ofdestination)- Means that the seller must pay the costs and freight necessaryto bring the goods to the named port of destination CIF - COST, INSURANCE AND FREIGHT (...named port of destination )-Means that the seller has the same obligations as under CFR butwith the addition that he has to procure marine insurance againstthe buyers risk of loss of or damage to the goods during thecarriage. 8. CPT - CARRIAGE PAID TO (... named place ofdestination)- Means that the seller pays the freight for the carriage of the goodsto the named destination- Prepaid vs. Collect CIP - CARRIAGE AND INSURANCE PAID TO (... namedplace of destination)- Means that the seller has the same obligations as under CPTbut with the addition that the seller has to procure cargoinsurance against the buyers risk of loss of or damage to thegoods during the carriage. 9. DAF - DELIVERED AT FRONTIER (... namedplace)- Means that the seller fulfills his obligation to deliver when thegoods have been made available, cleared for export, at thenamed point and place at the frontier, but before thecustoms border of the adjoining country 10. DES - DELIVERED EX SHIP Means that the seller fulfills his obligation to deliver whenthe goods have been made available to the buyer on board The ship has cleared the border but uncleared for import atthe named port of destination. The seller has to bear all the costs and risks involved inbringing the goods to the named port of destination 11. DEQ - DELIVERED EX QUAY Means that the seller fulfills his obligation to deliver whenhe has made the goods available to the buyer on the quay(wharf) at the named port of destination, cleared forimportation The seller has to bear all risks and costs including duties,taxes and other charges of delivering the goods thereto. This term can only be used for sea or inland waterwaytransport. 12. DDU - DELIVERED DUTY UNPAID Means that the seller fulfills his obligation to deliverwhen the goods have been made available at the namedplace in the country of importation. The seller has to bear the costs and risks involved inbringing the goods thereto (excluding duties, taxes andother official charges payable upon importation) as wellas the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bearany risks caused by his failure to clear the goods forimport in time. This term may be used irrespective of the mode oftransport. 13. DDP - DELIVERED DUTY PAID means that the seller fulfills his obligation to deliverwhen the goods have been made available at the namedplace in the country of importation. The seller has to bear the risks and costs, includingduties, taxes and other charges of delivering the goodsthereto, cleared for importation. This term may be used irrespective of the mode oftransport. EX WORKS REPRESENT LEAST BURDEN ON SELLERWHEREAS DDP REPRESENTS MAXIMUM OBLIGATION 14. FAS loading FOBFCABill ofLadingFactory Ex-worksCustoms+ CFRBringing goods to theDDU named destinationExportwithout customDDPclearanceclearanceunloading DAF before the+DES customs borderCIFDEQ Insurance 15. Export Import Documentation