Incoterm

Incoterm In‧co‧term [ˈɪŋkəʊˌtɜːm ǁ -koʊˌtɜːrm] noun [countable] COMMERCE

a word on a list from the International Chamber of Commerce that is used in international trade contracts. The list provides the exact meaning of terms, for example FOB, in order to avoid confusion between people in different countries:

• The ICC's Incoterms are widely used by exporters and forwarders involved in the shipment of goods.

ˌcarriage and inˌsurance ˈpaid abbreviation CIP COMMERCE

an Incoterm stating that the seller pays for the goods to be taken as far as a named place and is responsible for insuring them until then

ˌcarriage ˈpaid to abbreviation CPT COMMERCE

an Incoterm stating that the seller pays for the goods to be taken to a named place. The buyer is responsible for insuring the goods after they have been given to the first carrier (= company moving the goods)

ˌcost and ˈfreight abbreviation CFR COMMERCE

an Incoterm stating that the seller pays for the goods to be taken as far as a named place but is not responsible for insuring them

ˌcost, inˌsurance and ˈfreight abbreviation CIF also cost, freight and insurance abbreviation CFI COMMERCE

an Incoterm stating that the seller pays the cost of transporting the goods to an agreed place, and the cost of insuring them

deˌlivered at ˈfrontier abbreviation DAF COMMERCE

an Incoterm stating that the seller pays for the goods to be taken, usually by road or train, as far as the border of the buyer's country and is responsible for insuring them up to that point

deˌlivered ˌduty ˈpaid abbreviation DDP COMMERCE

an Incoterm stating that the seller pays for the goods to be delivered to the buyer, is responsible for insuring them for the whole journey and pays all related taxes

deˌlivered ˌduty unˈpaid abbreviation DDU COMMERCE

an Incoterm stating that the seller pays for the goods to be delivered to the buyer, is responsible for insuring them for the whole journey but does not pay related taxes

deˌlivered ex ˈquay abbreviation DEQ COMMERCE

an Incoterm stating that the seller is responsible for taking the goods off the ship in a particular port, and making them available there, but not for transporting them anywhere

deˌlivered ex ˈship abbreviation DES COMMERCE

an Incoterm stating that the seller will make the goods available on a ship in a particular port, and the buyer is responsible for paying for the goods to be put on land and transported to where they are needed

ex ˈworks abbreviation EXW COMMERCE

an Incoterm stating that the seller will make goods available to the buyer at the seller's factory, and the buyer is responsible for paying for them to be transported to where they are needed

ˌfree aˌlongside ˈship abbreviation FAS COMMERCE

an Incoterm stating that the seller is responsible for paying for the goods to be taken to a port for export, and any loss or damage to them, up to the time when the goods are ready to be loaded on a ship at the port

ˌfree ˈcarrier abbreviation FCA COMMERCE

an Incoterm stating that the seller is responsible for paying for the goods to be taken to a named place where they are given to the buyer or someone named by the buyer, for example a transport

ˌfree on ˈboard abbreviation FOB COMMERCE

an Incoterm stating that the seller pays for taking the goods to the port where they are placed on a ship for export:

• The port handles about 38 million tonnes of cargo a year, worth about $30 billion free on board.

ˌfree on board ˈairport abbreviation FOB airport COMMERCE

an Incoterm similar to 'free on board', except that the seller is responsible for insuring the goods until they are delivered to a carrier (= company that moves the goods) at a specified airport

ˌfree on ˈrail abbreviation FOR COMMERCE

an Incoterm stating that the seller pays for taking the goods to the place where they are placed on a railway truck of a train which will take them to the buyer:

• The sellers had agreed to deliver the machine free on rail.

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Incoterm UK US (also INCOTERM, INCO term, incoterm) /ˈɪnkəʊtɜːm/ noun [C]

► COMMERCE an expression from a list made by the International Chamber of Commerce that is used in the trade of goods from one country to another: »

As an importer, you have to understand the costs, responsibilities, rights, and obligations that accompany the use of a specific INCOTERM.