Incoterms

Incoterms; These are the rules that determine the distribution of responsibilities and costs between the parties in the stages of transportation and delivery of the goods, regulated by the ICC - International Chamber of Commerce. Incoterms items are expressed with abbreviations consisting of the initials of English definitions. Incoterms, which were first published in 1936, were revised in 1963, 1967, 1976, 1980, 1990, 2000 depending on the changing conditions. The current version of Incoterms 2010 entered into force on January 01, 2011. All versions can be used, provided that it is specified in the contract and documents. Rules are legally optional.

Delivery Forms / Classification and Explanations

1 – Types of Delivery Used for All Modes of Transport

-EXW – Ex Works: Delivery at the Exporter's Workplace; It is the delivery of the goods to the designated place such as the exporter's warehouse or factory, with all costs and risks borne by the importer.

-FCA – Free Carrier: Delivery to Carrier; It is the delivery of the goods to the carrier determined by the importer, at the place determined in the exporter's country.

-CPT – Carriage Paid To: Freight Paid Delivery; It is the delivery where the transportation cost (freight) of the specified vehicle is paid by the exporter, and insurance and other expenses belong to the importer.

-CIP – Carriage and In+surance Paid To: Carriage Fee, Insurance paid Delivery; It is the form of delivery in which the exporter pays the transportation fee and insurance costs up to the point determined in the importer's country.

-DAT – Delivered at Terminal; It is the delivery of the goods by being unloaded from the vehicle at the port/terminal determined in the importer's country, with all costs and risks borne by the exporter.

-DAP – Delivered at Place; The goods are delivered to the address specified in the importer's country, with all costs paid, excluding taxes.

-DDP – Delivered Duty Paid: Delivered Duty Paid; It is the delivery of the goods in the importer's country with all costs and customs duties paid.

2 – Delivery Types Used in Sea and Inland Waters

-FAS – Free Alongside Ship: Delivery next to the ship; It is the delivery of the goods at the quay or loading area to be loaded on the specified sea vehicle.

-FOB – Free on Board: Delivery on Board; It is the type of delivery in which the goods are loaded on the specified sea vehicle and the costs and responsibilities such as transportation and insurance are transferred to the importer.

-CFR – Cost and Freight: Freight Paid Delivery; It is the delivery where the transportation cost (freight) of the determined sea vehicle of the goods is paid by the exporter, insurance and other expenses belong to the importer.

-CIF – Cost, Insurance and Freight: Costs, Freight, Insurance Paid Delivery; It is the delivery of the goods to the delivery area determined in the importer's country with the shipping costs and insurance costs covered.