ICC
INCOTERMS

Incoterms are the definitions of commercial delivery forms with abbreviations by the International Chamber of Commerce (ICC) in order to prevent disputes arising due to different interpretations of the terms and expressions used by traders in contracts in international trade.

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Incoterms, which were first revealed in 1936, were revised six times in order to keep up with the developments in the field of international trade and took its final form with the change made in 2010. Changes are made by groups of experts of different nationalities who have made outstanding contributions to international trade and the ICC.

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The widespread use of these definitions in international business transactions and procurement procedures by legal authorities and practitioners demonstrates the confidence in Incoterms to remove the ambiguities that arise from translation and interpretation.

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Incoterms clarify who will bear the costs of the seller delivering the goods to the buyer, the division of costs, the passage of damage, the issuance of documents, customs clearance and insurance. Organized in three letters, these terms were published as eleven in the 2010 version.

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These terms and their brief descriptions:

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• ( EXW )Ex Works/ Delivery In Business

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• (FCA)Free Carrier/Delivery at the Place Specified at No Charge to the Carrier

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• (CPT)Carriage Paid To/Delivery Paid Carriage

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• ( CHIP )Carriage and Insurance Paid To/Delivery and Insurance Paid

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• (DAT)Delivered at Terminal/Delivery at Terminal

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• ( DAP )Delivered at Place/Delivery at Specified Point

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• (DDP)Delivered Duty Paid/Delivery with Duty Paid

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• (FAS)Free Alongside Ship/Delivery Next to the Ship

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•  (FOB)Free On Board/Ship Loaded Delivery

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• (CFR)Cost and Freight/Delivery as Cost and Freight Paid

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• (CIF)Cost, Insurance and Freight/Delivery as Insurance and Freight Paid for Goods

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