International Commercial Terms ( INCOTERMS )
Ex Works
Ex means from. Works means factory, mill or warehouse, which is the seller's
premises. EXW applies to goods available only at the seller's premises. Buyer
is responsible for loading the goods on truck or container at the seller's
premises, and for the subsequent costs and risks.
In practice, it is not uncommon that the seller loads the goods on truck or
container at the seller's premises without charging loading fee.
In the quotation, indicate the named place (seller's premises) after the
acronym EXW, for example EXW Kobe and EXW San Antonio.
The term EXW is commonly used between the manufacturer (seller) and
export-trader (buyer), and the export-trader resells on other trade terms to the
foreign buyers. Some manufacturers may use the term Ex Factory, which
means the same as Ex Works.
FCA {+ the named point of departure}
Free Carrier
The delivery of goods on truck, rail car or container at the specified point
(depot) of departure, which is usually the seller's premises, or a named railroad
station or a named cargo terminal or into the custody of the carrier, at seller's
expense. The point (depot) at origin may or may not be a customs clearance
center. Buyer is responsible for the main carriage/freight, cargo insurance and
other costs and risks.
In the air shipment, technically speaking, goods placed in the custody of
an air carrier is considered as delivery on board the plane. In practice, many
importers and exporters still use the term FOB in the air shipment.
The term FCA is also used in the RO/RO (roll on/roll off) services.
In the export quotation, indicate the point of departure (loading) after the
acronym FCA, for example FCA Hong Kong and FCA Seattle.
Some manufacturers may use the former terms FOT (Free On Truck) and
FOR (Free On Rail) in selling to export-traders.
FAS {+ the named port of origin}
Free Alongside Ship
Goods are placed in the dock shed or at the side of the ship, on the dock or
lighter, within reach of its loading equipment so that they can be loaded
aboard the ship, at seller's expense. Buyer is responsible for the loading fee,
main carriage/freight, cargo insurance, and other costs and risks.
In the export quotation, indicate the port of origin (loading) after the
acronym FAS, for example FAS New York and FAS Bremen.
The FAS term is popular in the break-bulk shipments and with the
importing countries using their own vessels.
FOB {+ the named port of origin}
Free On Board
The delivery of goods on board the vessel at the named port of origin (loading), at
seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance
and other costs and risks.
In the export quotation, indicate the port of origin (loading) after the
acronym FOB, for example FOB Vancouver and FOB Shanghai.
Under the rules of the INCOTERMS 1990, the term FOB is used for
ocean freight only. However, in practice, many importers and exporters still
use the term FOB in the air freight.
In North America, the term FOB has other applications. Many buyers and
sellers in Canada and the U.S.A. dealing on the open account and consignment
basis are accustomed to using the shipping terms FOB Origin and FOB
Destination.
FOB Origin means the buyer is responsible for the freight and other costs
and risks. FOB Destination means the seller is responsible for the freight and
other costs and risks until the goods are delivered to the buyer's premises,
which may include the import customs clearance and payment of import
customs duties and taxes at the buyer's country, depending on the agreement
between the buyer and seller.
In international trade, avoid using the shipping terms FOB Origin and
FOB Destination, which are not part of the INCOTERMS (International
Commercial Terms).
CFR {+ the named port of destination}
Cost and Freight
The delivery of goods to the named port of destination (discharge) at the seller's
expense. Buyer is responsible for the cargo insurance and other costs and risks. The
term CFR was formerly written as C&F. Many importers and exporters worldwide
still use the term C&F.
In the export quotation, indicate the port of destination (discharge) after
the acronym CFR, for example CFR Karachi and CFR Alexandria.
Under the rules of the INCOTERMS 1990, the term Cost and Freight is
used for ocean freight only. However, in practice, the term Cost and Freight
(C&F) is still commonly used in the air freight.
CIF {+ the named port of destination}
Cost, Insurance and Freight
The cargo insurance and delivery of goods to the named port of destination (discharge)
at the seller's expense. Buyer is responsible for the import customs clearance and
other costs and risks.
In the export quotation, indicate the port of destination (discharge) after
the acronym CIF, for example CIF Pusan and CIF Singapore.
Under the rules of the INCOTERMS 1990, the term CIF is used for
ocean freight only. However, in practice, many importers and exporters still
use the term CIF in the air freight.
CPT {+ the named place of destination}
Carriage Paid To
The delivery of goods to the named place of destination (discharge) at seller's
expense. Buyer assumes the cargo insurance, import customs clearance,
payment of customs duties and taxes, and other costs and risks.
In the export quotation, indicate the place of destination (discharge) after
the acronym CPT, for example CPT Los Angeles and CPT Osaka.
CIP {+ the named place of destination}
Carriage and Insurance Paid To
The delivery of goods and the cargo insurance to the named place of
destination (discharge) at seller's expense. Buyer assumes the import customs
clearance, payment of customs duties and taxes, and other costs and risks.
In the export quotation, indicate the place of destination (discharge) after
the acronym CIP, for example CIP Paris and CIP Athens.
DAF {+ the named point at frontier}
Delivered At Frontier
The delivery of goods to the specified point at the frontier at seller's expense.
Buyer is responsible for the import customs clearance, payment of customs
duties and taxes, and other costs and risks.
In the export quotation, indicate the point at frontier (discharge) after the
acronym DAF, for example DAF Buffalo and DAF Welland.
DES {+ the named port of destination}
Delivered Ex Ship
The delivery of goods on board the vessel at the named port of destination
(discharge), at seller's expense. Buyer assumes the unloading fee, import
customs clearance, payment of customs duties and taxes, cargo insurance, and
other costs and risks.
In the export quotation, indicate the port of destination (discharge) after
the acronym DES, for example DES Helsinki and DES Stockholm.
DEQ {+ the named port of destination}
Delivered Ex Quay
The delivery of goods to the quay (the port) at destination at seller's expense.
Seller is responsible for the import customs clearance and payment of customs
duties and taxes at the buyer's end. Buyer assumes the cargo insurance and
other costs and risks.
In the export quotation, indicate the port of destination (discharge) after
the acronym DEQ, for example DEQ Libreville and DEQ Maputo.
DDU {+ the named point of destination}
Delivered Duty Unpaid
The delivery of goods and the cargo insurance to the final point at destination,
which is often the project site or buyer's premises, at seller's expense. Buyer
assumes the import customs clearance and payment of customs duties and
taxes. The seller may opt not to insure the goods at his/her own risks.
In the export quotation, indicate the point of destination (discharge) after
the acronym DDU, for example DDU La Paz and DDU Ndjamena.
DDP {+ the named point of destination}
Delivered Duty Paid
The seller is responsible for most of the expenses, which include the cargo
insurance, import customs clearance, and payment of customs duties and taxes
at the buyer's end, and the delivery of goods to the final point at destination,
which is often the project site or buyer's premises. The seller may opt not to
insure the goods at his/her own risks.
In the export quotation, indicate the point of destination (discharge) after
the acronym DDP, for example DDP Bujumbura and DDP Mbabane.
Abbreviations, Acronyms and Symbols
Symbol,
Sign or Mark
Stands For
&
And
@
At; Each
X
By (in measurement); Multiply
¢
Cent; Penny
(C) [or] ©
Copyright
°
Degree
$
Dollar
/
Each; Per
'
Foot
"
Inch
>
Larger than; Greater than
µ
Micro
#
Number
%
Percent
£
Pound Sterling (British currency)
(R) [or] ®
SM
<
TM
¥
Registered
Service mark
Smaller than; Less than
Trademark
Yen (Japanese currency)
A
Abbreviation
or Acronym
Stands For
a.k.a.
Also known as
a.m. [or] am
Ante meridiem (before noon)
A.R.
All risks [in insurance]
A/S [or] a/s
As stated
abbrev.
Abbreviated; Abbreviation
AC [or] A.C.
After Christ; Alternating current
ACS
Association of Caribbean States
AD
Advertisement;
Anno Domini (In the year of our Lord)
ADB
African Development Bank;
Asian Development Bank
AISI
American Iron & Steel Institute
amp. [or] A
Ampere
Amt.
Amount
ANSI
American National
Standards Institute
APEC
Asia Pacific Economic Cooperation
API
American Petroleum Institute
approx.
Approximate; Approximately
AQL [or] A.Q.L.
Acceptable quality level
art.
Article
asap
As soon as possible
ASEAN
Association of
Southeast Asian Nations
ASME
American Society
for Mechanical Engineers
ASTM
American Society
for Testing and Materials
ATA
Admission temporairetemporary admission
attn.
Attention
AWB
Air waybill
AWG
American wire gauge
B
Abbreviation
or Acronym
Stands For
B.I.
Black iron
B/L [or] BL
Bill of lading
BAF
Bunker adjustment factor
BBS [or] EBBS
Electronic bulletin board service
BC [or] B.C.
Before Christ
BENELUX
Belgium-Netherlands-Luxembourg
BLAI
B/L application-instructions
blvd.
Boulevard
BMX
Bicycle motocross
B.O.
Bad order
BP
Boiling point; British Pharmacopoeia
BPT
British Preferential Tariff
BS
British Standards
BSF
British standard fine
BSP
British standard pipe
BSPT
British standard pipe taper
BSW
British standard Whitworth
BTI
Binding tariff information
BTN
Brussels Tariff Nomenclature
Btu [or] BTU
British thermal unit
BWG
Birmingham wire gauge
C
Abbreviation
or Acronym
Stands For
°C
Celsius (degree temperature)
C&F
Cost and freight
C&FC
Cost, freight and commission
c.c. [or] cc
Carbon copy; Cubic centimeter
CWO
Cash with order; Cheque with order
C/No.
Carton number; Case number
c/o
Care of; Certificate of origin;
Country of origin
c/s
Cases; Cycles per second
C/T
Cable transfer; Carton
CAD
Cash against documents;
Computer-aided design
CADD
Computer-aided design and drafting
CAI
Computer assisted instruction
CAF
Currency adjustment factor
CAM
Computer-aided manufacturing
cap.
Capacity; Capital
CARICOM
Caribbean Community and Common Market
cat.
Catalog (Catalogue)
CBM
Cubic meter
CCCN
Customs Cooperation
Council Nomenclature
CE
Conformité Européenne
(EC stamp of approval)
CEN
Comité Européen de Normalisation
(European Committee
for Standardization)
CENELEC
Comité Européen de
Normalisation Électrotechnique
(European Committee for
Electrotechnical Standard)
CFR
Cost and freight
CFS
Container freight station
CI
Commercial invoice
cir.
Circa (about); Circle
CID
Cash in advance
CIF
Cost, insurance and freight
CIF&C [or] CIFC
Cost, insurance, freight
and commission
CIP
Carriage and insurance paid to
CIS
Commonwealth of Independent States
CITES
Convention on International Trade
of Endangered Species
CKD
Completely knockdown
CL
Carload
CLT
Container load trailer
cm
Centimeter
CNC
Computer numerical control
CO [or] c/o
Country of origin
co.
Company
COD
Cash on delivery; Collect on delivery
COFC
Container on flat car
corp.
Corporation
CPI
Characters per inch;
Consumer price index
CPT
Carriage paid to
Cr-Mo
Chromium-molybdenum
CRT
Cathode ray tube
Cr-V
Chromium-vanadium
CSA
Canadian Standards Association
Ct.
Court
ctn. [or] C/T
Carton
cu. ft. [or] cft.
Cubic feet (plural);
Cubic foot (singular)
cwt
Hundredweight
CY
Container yard
D
Abbreviation
or Acronym
Stands For
D.R. [or] DR
Delivery receipt
D/A
Documents against acceptance
D/P
Documents against payment
DAF
Delivered at frontier
DC
Direct current; Documentary credit;
Dopo Christo (after Christ)
DDP
Delivered duty paid
DDU
Delivered duty unpaid
deg. [or] °
Degree
DEQ
Delivered ex quay
DES
Delivered ex ship
dia.
Diameter
DIN
Deutsches Institut für Normung
(German Standards Institute);
Drug identification number
DIY
Do-it-yourself
DM
Deutsche Mark (German currency)
do.
Ditto (same as above)
DOA [or] D/A
Documents on acceptance
DOP [or] D/P
Documents on payment
doz. [or] dz.
Dozen
Dr.
Drive
DST
Daylight saving time
Dwt
Deadweight
E
Abbreviation
or Acronym
Stands For
E.&O.E.
Errors and omissions excepted
e.g.
Exempli gratia (for example)
e-mail
Electronic mail
ea.
each
EAN
International Article Numbering
(formerly European Article Numbering)
EBBS [or] BBS
Electronic bulletin board service
EBRD
European Bank for Reconstruction
and Development
EC
East Caribbean; European Community
EC Dollar
East Caribbean Dollar
ECB
European Central Bank
EFTA
European Free Trade Agreement;
European Free Trade Association
EMC
Export management company
encl.
Enclosure
EPZ
Export processing zone
ESCAP
Economic and Social Commission for Asia
and the Pacific (United Nations)
EST
Eastern standard time
ETA
Estimated (expected) time of arrival
etc.
Et cetera (and so forth)
ETD
Estimated (expected) time of departure
ETS
Estimated (expected) time of sailing
EXW
Ex works
F
Abbreviation
or Acronym
Stands For
°F
Fahrenheit (degree temperature)
F.C.&S.
Free of capture and seizure
F.P.A. [or] FPA
Free of particular average
F.S.R.&C.C.
Free of strikes, riots and civil commotions
FAK
Freight all kinds
FAO
Food and Agriculture Organization
FAS
Free alongside ship
fax
Facsimile
FCA
Free carrier
FCL
Full carload; Full container load
FI
Free in
FIFO
First in, first out
FIO
Free in and out
FO
Free out
FOB
Free on board
FOR
Free on rail
FOT
Free on truck
FPA
Free of particular average (in insurance)
Franc CFA
Franc de la Colonies Francais d'Afrique;
Franc de la Communauté Financière
Africaine
Franc CFP
Franc des Comptoirs Francais du Pacifique
FRP
Fiberglass reinforced plastic
FT
Free trade
ft. [or] '
Feet (plural); Foot (singular)
FTL
Full truckload
FTZ
Foreign trade zone; Free trade zone
G
Abbreviation
or Acronym
Stands For
G.A.
General average
G.I.
Galvanized iron
G.W. [or] Gr. Wt. Gross weight
galv.
Galvanized
GATT
General Agreement on Tariffs and Trade
GCC
Gulf Cooperation Council
GDP
Gross domestic product
gm.
Gram
GMT [or] G.M.T. Greenwich Mean Time
gr.
Grade; Grain; Gross
GS
Geprüft Standard (TÜV tested standard)
GSP
Generalised System of Preferences
H
Abbreviation
or Acronym
Stands For
h.p.
Horsepower
H.R.
Hot rolled; Human resources
HAWB
House air waybill
HB
Brinell hardness number
HCV
Home consumption value
hicube
High cube container
HRC
Rockwell hardness (C scale)
HS
Harmonized System
(Harmonized Commodity Description
and Coding System);
Shore scleroscope number
HSS
High speed steel
HTSUS
Harmonized Tariff Schedule of the
United States
HV
Vickers hardness number
Hz
Hertz (cycles per second)
I
Abbreviation
or Acronym
Stands For
i.a.
Inter alia (among other things)
i.d. [or] id
Identification; Inside diameter
i.e.
Id est (that is)
IAI
Insurance application-instructions
IATA
International Air Transport Association
ibid. [or] ib.
Ibidem (in the same place)
IBRD
International Bank for
Reconstruction and Development
IC
Integrated circuit
ICAO
International Civil Aviation Organization
ICC
International Chamber of Commerce
IDA
International Development Association
IEC
International Electrotechnical Commission
IEEE
Institute of Electrical and
Electronic Engineers
IFAD
International Fund for
Agricultural Development
ILO
International Labor Organization
IMF
International Monetary Fund
IMO
International Maritime Organization
in. [or] "
Inch
inc.
Incorporated; Incorporation
INCOTERMS
International commercial terms
IRU
International Road Transport Union
ISBN
International standard book number
ISIC
International Standard Industrial
Classification
ISO
International Organization for
Standardization
ISSN
International standard serial number
ISWG
Imperial standard wire gauge
IT
Information technology
ITC
International Trade Center;
International Transport Conventions
ITU
International Telecommunication Union
IUCN
International Union for Conservation
of Nature and Natural Resources
J
Abbreviation
or Acronym
Stands For
JETRO
Japan External Trade Organization
JIS
Japanese Industrial Standards
K
Abbreviation
or Acronym
Stands For
K
Karat (carat); Kilo-; Thousand
°K
Kelvin (degree temperature)
KD
Knockdown
kg.
Kilogram
KHz
Kilohertz
km.
Kilometer
kph
Kilometers per hour
kW
Kilowatt
kWh
Kilowatt-hour
L
Abbreviation
or Acronym
Stands For
L. [or] l.
Liter
L/C [or] LC
Letter of credit
LAN
Local area network
LASH
Lighter aboard ship
lb.
Libra (pound)
LCD
Liquid crystal display
LCL
Less than carload;
Less than container load;
Loose carload;
loose container load
LED
Light emitting diode
LIFO
Last in, first out
LNG
Liquefied natural gas
LO/LO
Lift on/lift off
LPG
Liquefied petroleum gas
Ltd.
Limited
LTL
Less than truckload; loose truckload
LWB
Liner waybill
M
Abbreviation
or Acronym
Stands For
m [or] M
Meter
M.V. [or] MV
[or] M/V
Merchant vessel; Motor vessel
MAWB
Master air waybill
max.
maximum
MDF
Medium density fiberboard
meas.
Measurement
memo
Memorandum
Messrs.
Messieurs (gentlemen)
mfg.
Manufacturing
MFN
Most Favored Nation
mftr. [or] mfr.
Manufacturer
MHz
Megahertz
MIG
Metal inert gas
min.
Minimum; Minute
misc.
Miscellaneous
ml. [or] mL
Milliliter
MLB
Micro-landbridge (microbridge)
mm.
Millimeter
MNC
Multinational company (or corporation)
mph
Miles per hour
MT
Metric ton
N
Abbreviation
or Acronym
Stands For
n.a. [or] N/A
Not applicable; Not available
N.W. [or] Nt. Wt.
Net weight
NAFTA
North American Free Trade Agreement
NB
Nota bene (note well)
NBR
Acrylonitrile-butadiene rubber
NCV
No commercial value
NES [or] N.E.S.
Not elsewhere specified (or stated)
NIC
Newly industrializing country
no.
Número (number)
NOS
Not otherwise specified (or stated)
NPT
National pipe tapered
NSF
Not sufficient fund
NTB
Non-tariff barrier
NVD
No value declared
NVO
Nonvessel owner;
Nonvessel owning carrier
NVOCC
Nonvessel operating common carrier
O
Abbreviation
or Acronym
Stands For
o.d.
Outside diameter
OCP
Overland common point
OCR
Optical character recognition
ODM
Original design manufacturing
OECD
Organization for Economic
Cooperation and Development
OEM
Original equipment manufacturer
OPEC
Organization of Petroleum
Exporting Countries
OSHA
Occupational Safety and Health
Administration
oz.
Ounce
P
Abbreviation
or Acronym
Stands For
p.a.
Per annum (per year)
p.m. [or] pm
Post meridiem (after noon)
P.O. [or] PO
Postal order; Post office; Purchase order
pat.
Patent
PC
Personal computer; Printed circuit
pc.
Piece
PI [or] P/I
Pro forma invoice
PKD
Partly (or partially) knockdown
pkg.
Package
PL [or] P/L
Packing list
pl.
Place
P&L
Profit and loss
PLC
Personal lines of credit;
Product life cycle
POS
Point of sale
PPI
Producer (wholesale) price index
ppm
Parts per million
pref.
Prefecture; Preference; Preferred
prov.
Province
PS
Post scriptum (postscript)
psi
Pounds per square inch
pt.
Pint; Point
PTO
Please turn over
pwt
Pennyweight
PX
Post exchange
Q
Abbreviation
or Acronym
Stands For
Q.A. [or] QA
Quality assurance
Q.C. [or] QC
Quality control
q.v.
Quod vide (which see)
qlty.
Quality
qt.
Quart
qtr.
Quarter
qty.
Quantity
R
Abbreviation
or Acronym
Stands For
°r
Réaumur (degree temperature)
°R
Rankine (degree temperature)
R&D
Research and development
R.S.V.P.
Répondez s'il vous plait (please reply)
RE
Concerning; With reference to
ref.
Reference
reg.
Registered; Registration; Regular
rev.
Revised; Revision; Revolution
RLV
Recommended load volume
Rm.
Room
RO/RO [or] RORO
Roll on/roll off
ROI
Return on investment
rpm [or] r.p.m.
Revolutions (or rotations) per minute
RTW
Ready to wear
S
Abbreviation
or Acronym
Stands For
S.R.&C.C.
Strikes, riots, and civil commotions
S/S [or] S.S.
[or] SS
Stainless steel; Steamship (ocean vessel)
SAA
Standards Association of Australia
SAE
Society of Automotive Engineers
SBR
Styrene-butadiene rubber
SC [or] S/C
Sales confirmation; Sales contract
SI
Système International d'Unités
(International System of Units)
SIC
(U.S.) Standard Industrial Classification
SITC
Standard International Trade
Classification
SKD
Semi-knockdown
SKU
Stock keeping unit; Stock unit
SLC
Shipper's letter of instructions
SM
Service mark
SME
Small and medium-sized enterprise
SO [or] S/O
Shipping order
spec.
Specification
SS
Svensk Standard (Swedish Standard)
St.
Saint; Street
std.
Standard
stk.
Stock
SWG
Standard wire gauge
SWIFT
Society for Worldwide Interbank
Financial Telecommunication
T
Abbreviation
or Acronym
Stands For
3D
Three dimensional
T.P.&N.D.
Theft, pilferage and non-delivery
T.R.
Trust receipt
T/T
Telegraphic transfer
TCT
Tungsten carbide tip
telex
Teletype exchange
(Teleprinter and exchange)
TEU
Twenty-foot equivalent unit
TIG
Tungsten inert gas
TIR
Transit International Routier
TL
Truckload
TM [or] T.M.
Trademark
TOFC
Trailer on flat car
tpi
Teeth per inch; Threads per inch
TSUSA
Tariff Schedules of the
United States Annotated
TÜV
Technischen Ueberwachungs Vereine
(Technical Inspection Association)
tvp
Textured vegetable protein
U
Abbreviation
or Acronym
Stands For
U.A.E. [or] UAE
United Arab Emirates
U.K. [or] UK
United Kingdom
U.N.
United Nations
U.P.C.
Universal Product Code
UL
Underwriters Laboratories
ULD
Unit load device
UNC
Unified national coarse
UNCTAD
United Nations Conference on
Trade and Development
UNEF
Unified national extra fine
UNESCO
United Nations Educational,
Scientific and Cultural Organization
UNF
Unified national fine
UNICEF
United Nations Children's Fund
UNICODE
Universal digital code
UNIDO
United Nations Industrial
Development Organization
UNS
Unified numbering system
UPS
Uninterruptible power supply (or system)
USP [or] U.S.P.
United States Pharmacopoeia
UTC
Universal Coordinated Time
uv
Ultraviolet
V
Abbreviation
or Acronym
Stands For
V
Volt
VAT
Value added tax
VDE
Verband Deutscher Elektrotechniker
(Association of German
Electrical Engineers)
vol.
Volume
vs.
Versus
W
Abbreviation
or Acronym
Stands For
W
Watt
W.A.
With average (in insurance)
W.P.A.
With particular average (in insurance)
W/M [or] W or M
Weight or measure
WAN
Wide area network
WB
World Bank
WHO
World Health Organization
WIP
Work in process
WIPO
World Intellectual Property Organization
wt.
Weight
WTC
World Trade Center
WTO
World Trade Organization