STRUCTURE : INCOTERMS are divided in 4 categories or groups:

1) Group E - Departure - term : EXW or Ex works {...named place}

2) Group F - Main Carriage Unpaid - terms:
a) FCA or Free Carrier {...named place}
b) FAS or Free Alongside Ship {...named place}
c) FOB or Free On Board {named port of shipment}

3) Group C - Main Carriage Paid - terms :
a) CFR or Cost and Freight {...named port of destination}
b) CIF or Cost, Insurance and Freight {...named port of destination}
c) CPT or Carriage Paid To {...named port of destination}
d) CIP or Carriage and Insurance Paid To {...named port of destination}

4) Group D - Arrival - terms:
a) DAF or Delivered at Frontier {named place}
b) DES or Delivered Ex Ship {...named port of destination}
c) DEQ or Delivered Ex Quay {...named port of destination}
d) DDU or Delivered Duty Unpaid {named place of destination}
e) DDP or Delivered Duty Paid {named place of destination}

INCOTERMS 2000 deal with rights, risks and obligations between the parties on a contract of sale. Therefore each of the above mentioned groups carry his own and particulars of right, risk and obligation.

Any; but only ONE of these international rules must apply on the trade terms between the seller and the buyer, also know as EXPORTER and IMPORTER. It must be clear and should be stressed that INCOTERMS 2000 is limited to the contract of sale with respect to the delivery of goods sold.

During the next lessons, I will give you a detailed explanation of each group.