International Trade: terms of sale

Trading practices differ from country to country. Language and Law are two problematical areas, which can make the international transport of goods a difficult business.

Incoterms (International Commercial Terms of Trade)have been devised by the International Chambers of Commerce (the ICC) as a method of defining accurately transport responsibilities and liabilities. The aim is to eliminate misunderstandings by providing a clear set of rules for the interpretation of foreign trade terms.

We offer below a brief explanation of what the terms mean.

Incoterms 2000 are divided into 4 groups as follows:

GROUP E	EXW	Ex works at named place.
GROUP F	FCA	Free Carrier At named place.
	FAS	Free Alongside Ship FOB.
	FOB	Free On Board- named port of shipment.
GROUP C	CFR	Cost and Freight - named port of destination.
	CIF	Cost Insurance and Freight - named port of destination.
	CPT	Carriage Paid To - named place of destination.
	CIP	Carriage and Insurance Paid - named place of destination.
GROUP D	DAF	Delivered At Frontier - named place
	DES	Delivered Ex Ship - named port of destination
	DEQ	Delivered Ex Quay - named port of destination
	DDU	Delivered Duty Unpaid - named place of destination.
	DDP	Delivered Duty Paid - named place of destination.

Freight Action will be pleased to talk over any points that these terms raise, and how they may relate to any order you are negotiating or have contracted on.