INCOTERMS (Terms of Trade), published by the International Chamber of Commerce (ICC), are international rules, uniform and impartial, which constitute the whole basis of negotiation of international sales, defining the rights, obligations, costs and risks of parties to the contract of sale. Define the rights and obligations of seller and buyer regarding the transfer of goods, recurrent expenditure transactions, and liability for loss or damage. These rules, once incorporated into the contract of sale, now have legal force.

Note: On 01/01/2011 come into force the new revision of INCOTERM 2010, will leave the fourth they are: DAF - DES - DEQ and DDU. And enter into force two new terms: DAT and DBH.

EXW - EX WORKS (THE ORIGINAL). Transaction where it is for the buyer to withdraw the goods at the establishment of the seller, or another location designated by the latter (warehouse, factory, etc..) Not cleared for export and not loaded on any collecting vehicle.

FCA - FREE CARRIER (Free Carrier). Means that the seller delivers the goods, cleared for export to the carrier nominated by the buyer on the site combined. When delivery is made in the establishment of the seller is obliged to make the goods on the vehicle that will carry it. If delivery occurs elsewhere, the seller is not responsible for unloading the vehicle used to transport the goods from his factory to another place. It is the importer is required to unload the vehicle sent by the exporter and re-embark on any other means of transportation. INCOTERM used without restriction on the type of transport.

FAS - Free Alongside Ship (FREE ALONGSIDE SHIP). The seller complies with the delivery of goods when they are placed alongside the vessel at the named port of shipment, cleared for export. INCOTERM used only for sea or inland.

FOB - FREE ON BOARD (FREE ON BOARD.) Delivery is completed when the goods transposing the ship's rail at the named port of shipment. Requires the seller to do the clearance of export. INCOTERM used only for sea or inland.

CFR - COST AND FREIGHT (COST AND FREIGHT). Delivery is also complete when the goods transposing the ship's rail at port of shipment, cleared for export by the seller. The seller must pay the freight to the port of destination but the risk of loss or damage and any additional cost is borne by the buyer. INCOTERM used only for sea or inland.

CIF - COST, INSURANCE AND FREIGHT (CIF). Delivery is also complete when the goods transposing the ship's rail at port of shipment, cleared for export by the seller. When using this INCOTERM, the seller, and pay the freight to the port of destination, must also hire and pay for marine insurance, minimum coverage, whose drive, if necessary, is borne by the buyer. Other risks and additional costs borne by the buyer. INCOTERM used only for sea or inland.

CPT - CARRIAGE PAID TO ... (CARRIAGE PAID TO ...). The seller delivers the goods, cleared for export to the carrier nominated and paid the freight to the destination combined. But the buyer bears the risks and additional costs incurred after the goods have been delivered. INCOTERM used without restriction as to the mode of transport.

CIP - CARRIAGE AND INSURANCE PAID TO ... (CARRIAGE AND INSURANCE PAID TO ...). The seller delivers the goods, cleared for export to the carrier nominated and, besides paying the freight to the destination combined, is also required to hire and pay the transportation insurance, but only on minimum cover. Other risks and additional costs borne by the buyer. INCOTERM used without restriction as to the mode of transport.

DAF - DELIVERED AT FRONTIER (DELIVERED AT THE BORDER.) Term to be used only in the case of land border. The goods are made available to the buyer before the customs border of the neighboring country, inside the vehicle that transported, therefore, without downloading. The seller is responsible for the clearance of export but not import.

DES - DELIVERED EX SHIP (DELIVER ON SHIP). The seller delivers the goods at the port of destination within the vessel, bearing all the costs and risks of transport. The discharge and import clearance must be borne by the buyer. INCOTERM used only for sea or inland.

DEQ - DELIVERED EX QUAY (DELIVERED IN CAIS). The seller delivers the goods on the quay of the port of destination, bearing all the costs and risks of transporting and unloading. The responsibility of the buyer gets the import clearance. INCOTERM used for maritime transport, waterway or multimodal.

DDU - Delivered Duty Unpaid (Delivered duty unpaid). Means that the seller delivers the goods at the destination, but without the clearance of import and without downloading them. INCOTERM used without restriction as to the mode of transport.

DDP - Delivered Duty Paid (DDP). It means that the seller delivers the goods to the buyer at the destination already cleared for import, but not download them. INCOTERM used without restriction on the type of transport.