INCOTERMS-2010

Eleven terms of Incoterms 2010 can be divided into two separate groups:

The first group includes seven terms that may be used irrespectively of the selected type of transportation and irrespectively of the fact if one or several types of transportation are used.

This group includes EXW (Ex works ), FCA (Free carrier), СРТ (Carriage paid to), CIP (Carriage and Insurance paid to), DAT (Delivered at terminal), DAP (Delivered at place) and DDP (Delivered, duty paid). They can be used even if there is no overseas transportation at all. Along with that, it’s necessary to remember that these terms can be used when the vessel is employed partially for transportation.

In the second group of Incoterms both terms —point of delivery and place the goods are delivered to by the Buyer, are ports that’s why these terms are called «maritime and inland water rules». This group includes such terms as FAS (Free alongside ship), FOB (Free on board), CFR (Cost and freight) and CIF (Cost, insurance and freight). The latter three terms do not include any reference to ship’s rails as the point of delivery, as far as the goods are deemed to be delivered when they are on-board of the ship. This concept fairly present the modern commercial activity and excludes the point that the risk is being shifted back and forward in reference to imaginary perpendicular line.