INCO Terms: An Overview
Download INCO Terms chart here.
1. What does "INCO Terms" mean?
- International Commercial Terms
2. Basics of INCO Terms
- Owned by International Chamber of Commerce
- Standard Trade Definitions, available in 31 languages
- Used by customs and banks
- Found in sales contracts and letters of credit
- Current edition is INCO 2000
3. What is the Importance of INCO when quoting?
- INCO is the language of International Commerce.
- Provides clarity about the underlying commercial transaction.
- Clearly states who is paying for what.
4. What is the correct INCO format?
- Three letters followed by location
i.e. FOB Shanghai
“E” terms (EXW)
“F” terms (FCA, FAX, FOB)
“C” terms (CFR, CIF, CPT, CIP)
“D” terms (DAF, DES, DEQ, DDU, DDP)
5. INCO Terms, Defined
*highlighted terms are most common
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EXW
|
Ex Works
|
|
FCA
|
Free Carrier
|
|
FAS
|
Free Alongside Ship
|
|
FOB
|
Free Onboard
|
|
CFR
|
Cost & Freight
|
|
CIF
|
Cost, Insurance & Freight
|
|
CPT
|
Carriage Paid To
|
|
CIP
|
Carriage & Insurance Paid
|
|
DAF
|
Delivered at Frontier
|
|
DES
|
Delivered ex Ship
|
|
DEQ
|
Delivered at Quay
|
|
DDU
|
Delivered Duty Unpaid
|
|
DDP
|
Delivered Duty Paid
|
6. How do I know who pays for what service?
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Payment Responsibility, by Seller or Buyer
|
|
Services
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EXW
|
FCA
|
FAS
|
FOB
|
CFR
|
CIF
|
CPT
|
CIP
|
DAF
|
DES
|
DEQ
|
DDU
|
DDP
|
|
Warehouse Storage
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Warehouse Labor
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Export Packing
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Loading Charges
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Inland Freight
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Terminal Charges
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Forwarder Fees
|
B
|
B
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Insurance
|
B
|
B
|
B
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Loading on Vessel
|
B
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Ocean/Air Freight
|
B
|
B
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Chgs on Arrival Dest.
|
B
|
B
|
B
|
B
|
B
|
B
|
S
|
S
|
S
|
S
|
S
|
S
|
S
|
|
Duty, Taxes, Customer Clr
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
S
|
|
Delivery on Destination
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
B
|
S
|
S
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