international commercial terms ( incoterms ) · web viewinternational commercial terms (...

International Commercial Terms ( INCOTERMS )Ex Works

Ex means from. Works means factory, mill or warehouse, which is the seller's premises. EXW applies to goods available only at the seller's premises. Buyer is responsible for loading the goods on truck or container at the seller's premises, and for the subsequent costs and risks.

In practice, it is not uncommon that the seller loads the goods on truck or container at the seller's premises without charging loading fee.

In the quotation, indicate the named place (seller's premises) after the acronym EXW, for example EXW Kobe and EXW San Antonio.

The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.

FCA {+ the named point of departure}Free Carrier

The delivery of goods on truck, rail car or container at the specified point (depot) of departure, which is usually the seller's premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller's expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier is considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment.

The term FCA is also used in the RO/RO (roll on/roll off) services.

In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example FCA Hong Kong and FCA Seattle.

Some manufacturers may use the former terms FOT (Free On Truck) and FOR (Free On Rail) in selling to export-traders.

FAS {+ the named port of origin}Free Alongside Ship

Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller's expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks.

In the export quotation, indicate the port of origin (loading) after the acronym FAS, for example FAS New York and FAS Bremen.

The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels.

FOB {+ the named port of origin}Free On Board

The delivery of goods on board the vessel at the named port of origin (loading), at seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the export quotation, indicate the port of origin (loading) after the acronym FOB, for example FOB Vancouver and FOB Shanghai.

Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only. However, in practice, many importers and exporters still use the term FOB in the air freight.

In North America, the term FOB has other applications. Many buyers and sellers in Canada and the U.S.A. dealing on the open account and consignment basis are accustomed to using the shipping terms FOB Origin and FOB Destination.

FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyer's premises, which may include the import customs clearance and payment of import customs duties and taxes at the buyer's country, depending on the agreement between the buyer and seller.

In international trade, avoid using the shipping terms FOB Origin and FOB Destination, which are not part of the INCOTERMS (International Commercial Terms).

CFR {+ the named port of destination}Cost and Freight

The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F.

In the export quotation, indicate the port of destination (discharge) after the acronym CFR, for example CFR Karachi and CFR Alexandria.

Under the rules of the INCOTERMS 1990, the term Cost and Freight is used for ocean freight only. However, in practice, the term Cost and Freight (C&F) is still commonly used in the air freight.

CIF {+ the named port of destination}Cost, Insurance and Freight

The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the import customs clearance and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym CIF, for example CIF Pusan and CIF Singapore.

Under the rules of the INCOTERMS 1990, the term CIF is used for ocean freight only. However, in practice, many importers and exporters still use the term CIF in the air freight.

CPT {+ the named place of destination}Carriage Paid To

The delivery of goods to the named place of destination (discharge) at seller's expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.

CIP {+ the named place of destination}Carriage and Insurance Paid To

The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller's expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for example CIP Paris and CIP Athens.

DAF {+ the named point at frontier}Delivered At Frontier

The delivery of goods to the specified point at the frontier at seller's expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example DAF Buffalo and DAF Welland.

DES {+ the named port of destination}Delivered Ex Ship

The delivery of goods on board the vessel at the named port of destination (discharge), at seller's expense. Buyer assumes the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym DES, for example DES Helsinki and DES Stockholm.

DEQ {+ the named port of destination}Delivered Ex Quay

The delivery of goods to the quay (the port) at destination at seller's expense. Seller is responsible for the import customs clearance and payment of customs duties and taxes at the buyer's end. Buyer assumes the cargo insurance and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym DEQ, for example DEQ Libreville and DEQ Maputo.

DDU {+ the named point of destination}Delivered Duty Unpaid

The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyer's premises, at seller's expense. Buyer assumes the import customs clearance and payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks.

In the export quotation, indicate the point of destination (discharge) after the acronym DDU, for example DDU La Paz and DDU Ndjamena.

DDP {+ the named point of destination}Delivered Duty Paid

The seller is responsible for most of the expenses, which include the cargo insurance, import customs clearance, and payment of customs duties and taxes at the buyer's end, and the delivery of goods to the final point at destination, which is often the project site or buyer's premises. The seller may opt not to insure the goods at his/her own risks.

In the export quotation, indicate the point of destination (discharge) after the acronym DDP, for example DDP Bujumbura and DDP Mbabane.

Abbreviations, Acronyms and SymbolsSymbol,

Sign or Mark Stands For

& And

@ At; Each

X By (in measurement); Multiply

¢ Cent; Penny

(C) [or] © Copyright

° Degree

$ Dollar

/ Each; Per

' Foot

" Inch

> Larger than; Greater than

µ Micro

# Number

% Percent

£ Pound Sterling (British currency)

(R) [or] ® Registered

SM Service mark

< Smaller than; Less than

TM Trademark

¥ Yen (Japanese currency)

AAbbreviationor Acronym Stands For

a.k.a. Also known as

a.m. [or] am Ante meridiem (before noon)

A.R. All risks [in insurance]

A/S [or] a/s As stated

abbrev. Abbreviated; Abbreviation

AC [or] A.C. After Christ; Alternating current

ACS Association of Caribbean States

AD Advertisement;Anno Domini (In the year of our Lord)

ADB African Development Bank;Asian Development Bank

AISI American Iron & Steel Institute

amp. [or] A Ampere

Amt. Amount

ANSI American National Standards Institute

APEC Asia Pacific Economic Cooperation

API American Petroleum Institute

approx. Approximate; Approximately

AQL [or] A.Q.L. Acceptable quality level

art. Article

asap As soon as possible

ASEAN Association of Southeast Asian Nations

ASME American Society for Mechanical Engineers

ASTM American Society for Testing and Materials

ATA Admission temporaire- temporary admission

attn. Attention

AWB Air waybill

AWG American wire gauge

B

Abbreviationor Acronym Stands For

B.I. Black iron

B/L [or] BL Bill of lading

BAF Bunker adjustment factor

BBS [or] EBBS Electronic bulletin board service

BC [or] B.C. Before Christ

BENELUX Belgium-Netherlands-Luxembourg

BLAI B/L application-instructions

blvd. Boulevard

BMX Bicycle motocross

B.O. Bad order

BP Boiling point; British Pharmacopoeia

BPT British Preferential Tariff

BS British Standards

BSF British standard fine

BSP British standard pipe

BSPT British standard pipe taper

BSW British standard Whitworth

BTI Binding tariff information

BTN Brussels Tariff Nomenclature

Btu [or] BTU British thermal unit

BWG Birmingham wire gauge

C


°C Celsius (degree temperature)

C&F Cost and freight

C&FC Cost, freight and commission

c.c. [or] cc Carbon copy; Cubic centimeter

CWO Cash with order; Cheque with order

C/No. Carton number; Case number

c/o Care of; Certificate of origin;

Country of origin

c/s Cases; Cycles per second

C/T Cable transfer; Carton

CAD Cash against documents;Computer-aided design

CADD Computer-aided design and drafting

CAI Computer assisted instruction

CAF Currency adjustment factor

CAM Computer-aided manufacturing

cap. Capacity; Capital

CARICOM Caribbean Community and Common Market

cat. Catalog (Catalogue)

CBM Cubic meter

CCCN Customs Cooperation Council Nomenclature

CE Conformité Européenne (EC stamp of approval)

CEN Comité Européen de Normalisation (European Committee for Standardization)

CENELEC Comité Européen de Normalisation Électrotechnique (European Committee for Electrotechnical Standard)

CFR Cost and freight

CFS Container freight station

CI Commercial invoice

cir. Circa (about); Circle

CID Cash in advance

CIF Cost, insurance and freight

CIF&C [or] CIFC Cost, insurance, freight and commission

CIP Carriage and insurance paid to

CIS Commonwealth of Independent States

CITES Convention on International Trade of Endangered Species

CKD Completely knockdown

CL Carload

CLT Container load trailer

cm Centimeter

CNC Computer numerical control

CO [or] c/o Country of origin

co. Company

COD Cash on delivery; Collect on delivery

COFC Container on flat car

corp. Corporation

CPI Characters per inch;Consumer price index

CPT Carriage paid to

Cr-Mo Chromium-molybdenum

CRT Cathode ray tube

Cr-V Chromium-vanadium

CSA Canadian Standards Association

Ct. Court

ctn. [or] C/T Carton

cu. ft. [or] cft. Cubic feet (plural);Cubic foot (singular)

cwt Hundredweight

CY Container yard

D


D.R. [or] DR Delivery receipt

D/A Documents against acceptance

D/P Documents against payment

DAF Delivered at frontier

DC Direct current; Documentary credit;Dopo Christo (after Christ)

DDP Delivered duty paid

DDU Delivered duty unpaid

deg. [or] ° Degree

DEQ Delivered ex quay

DES Delivered ex ship

dia. Diameter

DIN Deutsches Institut für Normung (German Standards Institute);Drug identification number

DIY Do-it-yourself

DM Deutsche Mark (German currency)

do. Ditto (same as above)

DOA [or] D/A Documents on acceptance

DOP [or] D/P Documents on payment

doz. [or] dz. Dozen

Dr. Drive

DST Daylight saving time

Dwt Deadweight

E


E.&O.E. Errors and omissions excepted

e.g. Exempli gratia (for example)

e-mail Electronic mail

ea. each

EAN International Article Numbering(formerly European Article Numbering)

EBBS [or] BBS Electronic bulletin board service

EBRD European Bank for Reconstruction and Development

EC East Caribbean; European Community

EC Dollar East Caribbean Dollar

ECB European Central Bank

EFTA European Free Trade Agreement;European Free Trade Association

EMC Export management company

encl. Enclosure

EPZ Export processing zone

ESCAP Economic and Social Commission for Asia and the Pacific (United Nations)

EST Eastern standard time

ETA Estimated (expected) time of arrival

etc. Et cetera (and so forth)

ETD Estimated (expected) time of departure

ETS Estimated (expected) time of sailing

EXW Ex works

F


°F Fahrenheit (degree temperature)

F.C.&S. Free of capture and seizure

F.P.A. [or] FPA Free of particular average

F.S.R.&C.C. Free of strikes, riots and civil commotions

FAK Freight all kinds

FAO Food and Agriculture Organization

FAS Free alongside ship

fax Facsimile

FCA Free carrier

FCL Full carload; Full container load

FI Free in

FIFO First in, first out

FIO Free in and out

FO Free out

FOB Free on board

FOR Free on rail

FOT Free on truck

FPA Free of particular average (in insurance)

Franc CFA Franc de la Colonies Francais d'Afrique;Franc de la Communauté Financière Africaine

Franc CFP Franc des Comptoirs Francais du Pacifique

FRP Fiberglass reinforced plastic

FT Free trade

ft. [or] ' Feet (plural); Foot (singular)

FTL Full truckload

FTZ Foreign trade zone; Free trade zone

G


G.A. General average

G.I. Galvanized iron

G.W. [or] Gr. Wt. Gross weight

galv. Galvanized

GATT General Agreement on Tariffs and Trade

GCC Gulf Cooperation Council

GDP Gross domestic product

gm. Gram

GMT [or] G.M.T. Greenwich Mean Time

gr. Grade; Grain; Gross

GS Geprüft Standard (TÜV tested standard)

GSP Generalised System of Preferences

H


h.p. Horsepower

H.R. Hot rolled; Human resources

HAWB House air waybill

HB Brinell hardness number

HCV Home consumption value

hicube High cube container

HRC Rockwell hardness (C scale)

HS Harmonized System (Harmonized Commodity Description and Coding System);Shore scleroscope number

HSS High speed steel

HTSUS Harmonized Tariff Schedule of the United States

HV Vickers hardness number

Hz Hertz (cycles per second)

I


i.a. Inter alia (among other things)

i.d. [or] id Identification; Inside diameter

i.e. Id est (that is)

IAI Insurance application-instructions

IATA International Air Transport Association

ibid. [or] ib. Ibidem (in the same place)

IBRD International Bank for Reconstruction and Development

IC Integrated circuit

ICAO International Civil Aviation Organization

ICC International Chamber of Commerce

IDA International Development Association

IEC International Electrotechnical Commission

IEEE Institute of Electrical and Electronic Engineers

IFAD International Fund for Agricultural Development

ILO International Labor Organization

IMF International Monetary Fund

IMO International Maritime Organization

in. [or] " Inch

inc. Incorporated; Incorporation

INCOTERMS International commercial terms

IRU International Road Transport Union

ISBN International standard book number

ISIC International Standard Industrial Classification

ISO International Organization for Standardization

ISSN International standard serial number

ISWG Imperial standard wire gauge

IT Information technology

ITC International Trade Center;International Transport Conventions

ITU International Telecommunication Union

IUCN International Union for Conservation of Nature and Natural Resources

J


JETRO Japan External Trade Organization

JIS Japanese Industrial Standards

K


K Karat (carat); Kilo-; Thousand

°K Kelvin (degree temperature)

KD Knockdown

kg. Kilogram

KHz Kilohertz

km. Kilometer

kph Kilometers per hour

kW Kilowatt

kWh Kilowatt-hour

L


L. [or] l. Liter

L/C [or] LC Letter of credit

LAN Local area network

LASH Lighter aboard ship

lb. Libra (pound)

LCD Liquid crystal display

LCL Less than carload;Less than container load;Loose carload;loose container load

LED Light emitting diode

LIFO Last in, first out

LNG Liquefied natural gas

LO/LO Lift on/lift off

http://www.export911.com/e911/export/docLC2.htm

LPG Liquefied petroleum gas

Ltd. Limited

LTL Less than truckload; loose truckload

LWB Liner waybill

M


m [or] M Meter

M.V. [or] MV [or] M/V Merchant vessel; Motor vessel

MAWB Master air waybill

max. maximum

MDF Medium density fiberboard

meas. Measurement

memo Memorandum

Messrs. Messieurs (gentlemen)

mfg. Manufacturing

MFN Most Favored Nation

mftr. [or] mfr. Manufacturer

MHz Megahertz

MIG Metal inert gas

min. Minimum; Minute

misc. Miscellaneous

ml. [or] mL Milliliter

MLB Micro-landbridge (microbridge)

mm. Millimeter

MNC Multinational company (or corporation)

mph Miles per hour

MT Metric ton

N


n.a. [or] N/A Not applicable; Not available

N.W. [or] Nt. Wt. Net weight

NAFTA North American Free Trade Agreement

NB Nota bene (note well)

NBR Acrylonitrile-butadiene rubber

NCV No commercial value

NES [or] N.E.S. Not elsewhere specified (or stated)

NIC Newly industrializing country

no. Número (number)

NOS Not otherwise specified (or stated)

NPT National pipe tapered

NSF Not sufficient fund

NTB Non-tariff barrier

NVD No value declared

NVO Nonvessel owner;Nonvessel owning carrier

NVOCC Nonvessel operating common carrier

O


o.d. Outside diameter

OCP Overland common point

OCR Optical character recognition

ODM Original design manufacturing

OECD Organization for Economic Cooperation and Development

OEM Original equipment manufacturer

OPEC Organization of Petroleum Exporting Countries

OSHA Occupational Safety and Health Administration

oz. Ounce

P


p.a. Per annum (per year)

p.m. [or] pm Post meridiem (after noon)

P.O. [or] PO Postal order; Post office; Purchase order

pat. Patent

PC Personal computer; Printed circuit

pc. Piece

PI [or] P/I Pro forma invoice

PKD Partly (or partially) knockdown

pkg. Package

PL [or] P/L Packing list

pl. Place

P&L Profit and loss

PLC Personal lines of credit;Product life cycle

POS Point of sale

PPI Producer (wholesale) price index

ppm Parts per million

pref. Prefecture; Preference; Preferred

prov. Province

PS Post scriptum (postscript)

psi Pounds per square inch

pt. Pint; Point

PTO Please turn over

pwt Pennyweight

PX Post exchange

Q


Q.A. [or] QA Quality assurance

Q.C. [or] QC Quality control

q.v. Quod vide (which see)

qlty. Quality

qt. Quart

qtr. Quarter

qty. Quantity

R


°r Réaumur (degree temperature)

°R Rankine (degree temperature)

R&D Research and development

R.S.V.P. Répondez s'il vous plait (please reply)

RE Concerning; With reference to

ref. Reference

reg. Registered; Registration; Regular

rev. Revised; Revision; Revolution

RLV Recommended load volume

Rm. Room

RO/RO [or] RORO Roll on/roll off

ROI Return on investment

rpm [or] r.p.m. Revolutions (or rotations) per minute

RTW Ready to wear

S


S.R.&C.C. Strikes, riots, and civil commotions

S/S [or] S.S. [or] SS

Stainless steel; Steamship (ocean vessel)

SAA Standards Association of Australia

SAE Society of Automotive Engineers

SBR Styrene-butadiene rubber

SC [or] S/C Sales confirmation; Sales contract

SI Système International d'Unités (International System of Units)

SIC (U.S.) Standard Industrial Classification

SITC Standard International Trade Classification

SKD Semi-knockdown

SKU Stock keeping unit; Stock unit

SLC Shipper's letter of instructions

SM Service mark

SME Small and medium-sized enterprise

SO [or] S/O Shipping order

spec. Specification

SS Svensk Standard (Swedish Standard)

St. Saint; Street

std. Standard

stk. Stock

SWG Standard wire gauge

SWIFT Society for Worldwide Interbank

Financial Telecommunication

T


3D Three dimensional

T.P.&N.D. Theft, pilferage and non-delivery

T.R. Trust receipt

T/T Telegraphic transfer

TCT Tungsten carbide tip

telex Teletype exchange (Teleprinter and exchange)

TEU Twenty-foot equivalent unit

TIG Tungsten inert gas

TIR Transit International Routier

TL Truckload

TM [or] T.M. Trademark

TOFC Trailer on flat car

tpi Teeth per inch; Threads per inch

TSUSA Tariff Schedules of the United States Annotated

TÜV Technischen Ueberwachungs Vereine (Technical Inspection Association)

tvp Textured vegetable protein

U


U.A.E. [or] UAE United Arab Emirates

U.K. [or] UK United Kingdom

U.N. United Nations

U.P.C. Universal Product Code

UL Underwriters Laboratories

ULD Unit load device

UNC Unified national coarse

UNCTAD United Nations Conference on Trade and Development

UNEF Unified national extra fine

UNESCO United Nations Educational, Scientific and Cultural Organization

UNF Unified national fine

UNICEF United Nations Children's Fund

UNICODE Universal digital code

UNIDO United Nations Industrial Development Organization

UNS Unified numbering system

UPS Uninterruptible power supply (or system)

USP [or] U.S.P. United States Pharmacopoeia

UTC Universal Coordinated Time

uv Ultraviolet

V


V Volt

VAT Value added tax

VDE Verband Deutscher Elektrotechniker (Association of German Electrical Engineers)

vol. Volume

vs. Versus

W


W Watt

W.A. With average (in insurance)

W.P.A. With particular average (in insurance)

W/M [or] W or M Weight or measure

WAN Wide area network

WB World Bank

WHO World Health Organization

WIP Work in process

WIPO World Intellectual Property Organization

wt. Weight

WTC World Trade Center

WTO World Trade Organization