Incoterms make international trade easier and help traders in different countries to understand one another. These standard trade definitions that are most commonly used in international contracts are protected by ICC copyright.

To assist traders to understand the areas that the 13 Incoterms cover and how each one works, the official ICC website now publishes the Preambles to each term in read-only format, together with basic information and background.

The Preambles do not spell out the obligations of buyer and seller, which are essential to correct use of Incoterms. This information may be obtained by consulting the full published texts of the 13 Incoterms, available from ICC Publishing and ICC national committees throughout the world.

Incoterms is developed, maintained and promoted by ICC Commission on Commercial Law and Practice (CLP).

 

Among the best known Incoterms are: • EXW (Ex works) • FCA (Free carrier) • FAS (Free alongside ship) • FOB (Free on board) • CFR (Cost and freight) • CIF (Cost, insurance and freight) • CPT (Carriage paid to) • CIP (Carriage and insurance paid to) • DAF (Delivered at frontier) • DES (Delivered ex ship) • DEQ (Delivered ex quay) • DDU (Delivered duty unpaid) • DDP (Delivered duty paid)

 

Incoterms 2000 provides Preambles explaining the function of each Incoterm. These are reproduced in full for visitors to this site. For example, the Preamble to FAS FREE ALONGSIDE SHIP states that under FAS the seller delivers when the goods are placed alongside the vessel at the named port of shipment. "The buyer has to bear all costs and risks of loss of or damage to the goods from that moment."