Incoterms 2000

In 1936, the International Chamber of Commerce established the International Rules for the Interpretation of Trade (Incoterms) for the purpose of providing a set of international rules outlining the most commonly used foreign trade terms.

In 1990, for ease of understanding, the terms were grouped into four (4) categories. First, a term whereby the seller is responsible to simple make the goods available to the buyer at the seller's own premises (EXW). Secondly, whereby the seller is called upon to deliver the goods to a carrier appointed by the buyer (FCA, FAS, FOB). Next, the C-terms designate the seller to contract for carriage, but without assuming the risk of loss of or damage to the goods or additional costs due to events occurring after shipment and dispatch (CFR, CIF, CPT, CIP). Lastly, the seller has to bear all costs and risks needed to bring the goods to the place of destination (DAF, DES, DDU, DDP)

INCOTERMS