Blackwell Reference Online

Extract

Standardized terminology used to assist in describing the responsibilities of parties (usually buyer and seller) in international trade transactions. INCOTERMS were approved by a committee of the international chamber of commerce . Trading terms have been standardized in order to reduce misunderstandings between parties to trade transactions. The terms specify which party is responsible for delivery of goods to a given place, providing and paying for insurance, and other transportation requirements. The most recent revision of incoterms took place in 1990. The 1990 incoterms include: CAP Carriage and insurance paid to (named place of destination) 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) DAF Delivered at frontier (named place) DDP Delivered duty paid (named place of destination) DDU Delivered duty unpaid (named place of destination) DEQ Delivered ex quay duty paid (named port of destination) DES Delivered ex ship (named port of destination). EXW Ex works (named place) FAS Free alongside ship (named port of shipment) FCA Free carrier (named place) FOB Free on board (named port of shipment) Each INCOTERM is explained in detail under its name. ... log in or subscribe to read full text