Incoterms

INCOTERMS 2010:
The word Incoterms is an abbreviation of International commercial terms, and the chosen Incoterms rules is a term of the contract of sale. Although the Incoterms rules are primarily intended for international sales they can be applied to domestic contracts by reference. Trade terms are, in fact, key elements of international contracts of sale, since they tell the parties what todo with respect to:
* carriage of the goods from seller to buyer; and
* export, import and security-related clearance.
They also explain the division of costs and risks between the parties.
The incoterms rules determine when the seller has fulfilled his obligation to deliver the goods on time but no more.
The parties of Incoterms are:

In the first place, the goods will have to bemoved from the seller’s location to the location selected by the buyer. Therefore, it is necessary to arrange and pay for their transport. This means that first of all there are three parties: the seller, the buyer and the carrier. This can lead to complications. One of the main purposes of the Incoterms rules is to define the different roles of the parties in relation to the contract of carriage.After there is other part, the terms, we can divide in four categories, using the first letter as an indication of the category to wich the term belongs. The first category has only one trade term, namely EXW. But in the other three categories there are three F-terms (FCA, FAS and FOB), Four C-terms (CPT, CIP, CFR and CIF) and three D-terms (DAT, DAP and DDP).
It follows from the presentation ofthe Incoterms rules that Group 1 with terms intended for any mode or modes of transport contains:
Incoterms for any Mode or Modes of Transport:
* EXW - Ex Works
* FCA - Free Carrier
* CPT - Carriage Paid To
* CIP - Carriage and Insurance Paid
* DAT - Delivered At Terminal 
* DAP - Delivered At Place 
* DDP - Delivered Duty Paid
While Group 2 with terms for sea andwaterway transport comprise:
Incoterms for Sea and Inland Waterway Transport Only:
* FAS - Free Alongside Ship
* FOB - Free On Board
* CFR - Cost and Freight
* CIF - Cost, Insurance and Freight
The letter F signifies that the seller must had over the goods to a nominated carrier Free of risk and expense to the buyer.
The letter C signifies that the seller must bear certain Costseven after the critical point for the division of the risk of loss of or damage to the goods has been reached.
The letter D signifies that the goods must arrive at a stated Destination.

Incoterms for any Mode or Modes of Transport:

EXW:
The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. The seller's obligation is to makethe goods available at his premises (works, factory, warehouse). This term represents minimum obligation for the seller. This term can be used across all modes of transport

FCA:
The seller's obligation is to hand over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choosewithin the place or range stipulated where the carrier shall take the goods into his charge. When the seller's assistance is required in making the contract with the carrier the seller may act at the buyers risk and expense. This term can be used across all modes of transport.
CPT:
The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to thegoods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer. This term requires the seller to clear the goods for export and can be used across all modes of transport.
CIP:
The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer's risk of loss or damage of goods during the carriage. The...