2.2 Incoterms 2010 — the Eleven Terms

The four families (the learning structure): (a) The E-family (departure — the seller's minimum) EXW (Ex Works): the goods at the seller's door — the buyer loads, clears, transports everything; risk passes at the seller's premises. The SELLER'S MINIMUM obligation. (b) The F-family (main carriage unpaid by the seller) FCA (Free Carrier): the goods delivered to the buyer's carrier at a named place (export- cleared by the seller) — the container era's term; FAS (Free Alongside Ship): the goods placed alongside the vessel at the named port (the sea only); FOB (Free On Board): the goods on board the vessel at the named port — the risk passes on loading; the classic sea term (with the container-era caution: FCA fits containers better). (c) The C-family (main carriage paid — but risk at shipment) CFR (Cost and Freight): the seller pays to the destination port — but RISK passes at SHIPMENT (the C-family's trap!); CIF (Cost, Insurance and Freight): CFR + the seller's insurance duty (the minimum cover) — the classic trade term of the L/C world; CPT (Carriage Paid To): the CFR of any transport mode; CIP (Carriage and Insurance Paid To): the CIF of any mode — the container era's C-term. (d) The D-family (arrival — the seller's maximum) DAT (Delivered At Terminal): the goods delivered unloaded at the…