Glossary of Terms

Each INCOTERM refers to a type of agreement for the purchase and shipping of goods internationally. There are 11 different terms, each of which helps the users deal with different situations involving the movement of goods. For example, the term FCA is often used with shipments involving Ro/Ro or container transport. DAP assists with situations found in intermodal or courier service-based shipments.

INCOTERMS also deal with documentation required for global trade, specifying which parties are responsible for which documents. Determining the paperwork required to move a shipment is an important job, since requirements vary so much between countries. Two items, however, are standard: the commercial invoice and the packing list.

INCOTERMS were created primarily for people inside the world of global trade. Outsiders frequently find them difficult to understand. Seemingly common words such as “responsibility” and “delivery” have different meanings in the global trade than they do in other situations.

INCO TERMS

EXW - Ex WorksFOB - Free on BoardCFR - Cost and FreightCIF - Cost, Freight and InsuranceDAT - Delivered at TerminalDAP - Delivered at PlaceDDP - Delivered Duty Paid
Pickup & DeliveryBUYERSELLERSELLERSELLERSELLERSELLERSELLER
Handling FeesBUYERSELLERSELLERSELLERSELLERSELLERSELLER
Export DocumentsBUYERSELLERSELLERSELLERSELLERSELLERSELLER
Container LoadingBUYERSELLERSELLERSELLERSELLERSELLERSELLER
Terminal FeesBUYERSELLERSELLERSELLERSELLERSELLERSELLER
FreightBUYERBUYERSELLERSELLERSELLERSELLERSELLER
Import DocumentsBUYERBUYERBUYERSELLERSELLERSELLERSELLER
Inland to TerminalBUYERBUYERBUYERSELLERSELLERSELLERSELLER
Container UnloadingBUYERBUYERBUYERSELLERSELLERSELLERSELLER
Import HandlingBUYERBUYERBUYERBUYERSELLERSELLERSELLER
Door DeliveryBUYERBUYERBUYERBUYERADVISESELLERSELLER
Customs ClearanceBUYERBUYERBUYERBUYERADVISEADVISESELLER
Duties & TaxesBUYERBUYERBUYERBUYERBUYERBUYERSELLER



Glossary of Terms and Abbreviations

General Shipping References