Incoterms 2010

The term "Ex-factory" means that the seller is considered to have fulfilled his delivery obligations when he places the goods at the disposal of the buyer at his company or another named place (for example: at a factory, factory, warehouse, etc.). The seller is not responsible for loading the goods on the vehicle, as well as for customs clearance of the goods for export.

The term "free carrier" means that the seller will deliver the goods that have passed customs clearance to the carrier specified by the buyer to the specified place. It should be noted that the choice of the place of delivery will affect the obligation to load and unload the goods at this place. If the delivery is made at the seller's premises, the seller is responsible for the shipment. If the delivery is made to another place, the seller is not responsible for the shipment of the goods.

This term can be used during transportation by any type of transport, including mixed transportation.

The term "free alongside ship" means that the seller has made delivery when the goods are placed alongside the ship at the berth or on lighters at the specified port of shipment. This means that from this moment on, all costs and risks of loss or damage to the goods must be borne by the buyer. According to the terms of FAS, the seller is responsible for customs clearance of the goods for export (in contrast to the terms of the previous editions of "Incoterms" - the buyer was responsible for customs clearance for export).

However, if the parties wish for the buyer to undertake the duties of customs clearance of the goods for export, then this should be discussed in the relevant addendum to the sales contract.

The term "Free on board" means that the seller has made delivery when the goods have passed through the vessel's rail at the named port of shipment. This means that from this moment on, all costs and risks of loss or damage to the goods must be borne by the buyer. Under the terms of the FOB term, the seller is responsible for customs clearance of the goods for export.

This term can be used only during the transportation of goods by sea or inland water transport. If the parties do not intend to deliver the goods via rail vessels, the term FCA should be used.

The term "cost and freight" means that the seller has made the delivery when the goods have passed the vessel's rail at the port of shipment. Under the terms of the CFR term, the seller is responsible for customs clearance of the goods for export. This term can be used only during the transportation of goods by sea or inland water transport.

The term “cost, insurance, and freight” means that the seller has made delivery when the goods have passed through the vessel's handrail at the port of shipment. The seller is obliged to pay the costs and freight necessary to deliver the goods to the specified port of destination, but the risk of loss or damage to the goods, as well as any additional costs arising after the shipment of the goods, passes from the seller to the buyer.

Under the terms of the CIF term, the seller is responsible for customs clearance of the goods for export. This term can be used only during the transportation of goods by sea or inland water transport. If the parties do not intend to deliver the goods through the rail of vessels, the term CIP should be used.

Термін “фрахт/перевезення та страхування оплачені до” означає, що продавець доставить товар названому їм перевізнику. Крім цього, продавець зобов’язаний оплатити витрати, пов’язані з перевThe term "freight/carriage and insurance paid to" means that the seller will deliver the goods to the carrier named by them. In addition, the seller is obliged to pay the costs associated with the transportation of the goods to the specified destination. This means that the buyer assumes all risks and any additional costs after the goods are delivered in this way.

However, under the terms of the CIP, the seller is also obliged to provide insurance against the risks of loss and damage to the goods during transportation for the benefit of the buyer. Therefore, the seller concludes an insurance contract and pays the insurance premiums. The buyer should note that the terms of the CIP term require the seller to provide insurance with minimum coverage.

Under the terms of the CIR term, the seller is responsible for customs clearance of the goods for export. This term can be used during the transportation of goods by any type of transport, including mixed transportation.

The term "freight/carriage paid to" means that the seller will deliver the goods to the carrier named by them. In addition, the seller is obliged to pay the costs associated with the transportation of the goods to the specified destination. This means that the buyer assumes all risks of loss or damage to the goods, as well as other costs after the goods are handed over to the carrier. According to the terms of the SRT term, the seller is responsible for customs clearance of the goods for export.

This term can be used during the transportation of goods by any type of transport, including mixed transportation.

The term “delivery at the terminal” (a new term introduced in Incoterms 2010) means that the seller has fulfilled his obligation to supply when he has provided the buyer with the goods unloaded from the vehicle at the agreed terminal of the specified destination. A terminal is any place, including an air/auto/rail cargo terminal, wharf, warehouse, etc. The seller bears all risks for the delivery of the goods and their unloading at the terminal.

The seller is not obliged to perform customs formalities or pay import duties when importing goods. This term can be used for deliveries by any mode of transport.

The term “delivery at point” (a new term introduced in Incoterms 2010) means that the seller has fulfilled his obligation to deliver when he has provided the buyer with the goods ready for unloading from the vehicle that has arrived at the agreed destination. The seller bears all the risks associated with the delivery of the goods to the agreed destination. The seller is not obliged to perform customs formalities or pay import duties when importing goods.

This term can be used for deliveries by any mode of transport.

he term "delivery with payment of duty" means that the seller will provide the goods that have passed customs clearance and have not been unloaded from the arriving vehicle at the disposal of the buyer at the named destination. The seller is obliged to bear all costs and risks associated with the transportation of the goods, including (where necessary) any duties for importation into the country of destination (the word "duty" here means the responsibility and risks for carrying out customs clearance, and also for payment of customs formalities, customs duties, taxes, and other fees). While EXW imposes minimum obligations on the seller, DDP implies maximum obligations on the seller.

This term cannot be applied if the seller directly or indirectly cannot ensure the receipt of an import license. If the parties have agreed to exclude from the seller's obligations some of the costs payable upon importation (such as value-added tax - VAT), this should be clearly defined in the sales contract.