Incoterms 2000     What are Incoterms?   Incoterms are a set of international rules for the interpretation of the most commonly used trade terms. There are 13 main terms and several secondary terms. These denote the points at which shipper, carrier and consigneee risk and responsibility start and end.This set of international rules was first published in 1936 known as "INCOTERMS 1936" by the International Chamber of Commerce. Incoterms are amended every 10 years. Incoterms are recognized globally by courts and other authorities. Frequently, parties to a contract are unaware of the different trading practices in their respective countries. This lack of knowledge can lead to misunderstandings and disputes between customer and supplier. The incorporation of Incoterms in international sales contracts reduces this risk.   Incoterms 2000 - How do they affect you?   Since January 1st 2000 a new set of Incoterms have applied. Included in these are six minor differences which could prove costly if ignored. These are higlighted below.   CFR Cost and Freight* As for CIF except that the cost of insurance is covered by the buyer. CIF Cost, Insurance and Freight* Cost of goods plus insurance and freight, duty unpaid, to a named port of destination. Sea or inland waterway transport only. CIP Carriage and Insurance Paid To Costs of carriage and insurance of the goods, duty unpaid to the named destination. Applies to all modes of transport. CPT Carriage Paid To As for CIP, except the cost of insurance is carried by the buyer. DAF Delivered At Frontier Costs of delivery, duty unpaid at the named point and place at the frontier. Applies to all modes of transport. DDP Delivered Duty Paid Delivered Duty Paid - Delivery takes place on the premises of the buyer where the arriving vehicle cargos are discharged from the vehicle. If delivery takes place elsewhere, delivery is completed by loading the cargo onto the vehicle sent by the buyer to collect the goods. DDU Delivered Duty Unpaid Delivered Duty Unpaid - Delivery takes place on the premises of the buyer, still loaded on the arriving vehicle. If delivery takes place elsewhere, delivery is completed by loading the cargo onto the vehicle sent by the buyer to collect the goods. DEQ Delivered Ex Quay* Delivered Ex Quay - The obligation for customs clearance and payment of of import duties will change from the seller/exporter to the buyer/importer at the named port of destination. DES Delivered Ex Ship* Costs of delivery on board the vessel, duty unpaid, at the named port of destination. Sea or inland waterway transport only. EXW Ex Works Ex Works - The responsibility for loading cargo onto a collecting vehicle at the sellers/exporters premises is no longer the obligation of the seller/exporter. The buyer is now responsible. If there is more than one loading area at the sellers premises the seller has the option to designate any one of them for loading. FCA Free Carrier Free Carrier - This defines two possibilities. 1. Delivery to the carrier at the premises of the seller, when the latter is under the obligation to load the cargo onto the vehicle of the carrier. 2. Delivery to the carrier at any other point such as a terminal, quay...etc, where the carrier on behalf of the buyer is responsible for discharging the shipment from the vehicle sent by the seller. FAS Free Alongside Ship* Free Alongside Ship - The obligation of customs entry and obtaining an export license will change from the buyer/importer to the seller/exporter at the named port of sailing. FOB Free On Board* All costs up to delivery over the ships rail at the named port of shipment. Sea or inland waterway transport only.   The Thirteen Incoterms 1990. Revised in 2000. (Higlighted in yellow)