To facilitate imports and exports, as well as domestic and international movement of goods, the International Chamber of Commerce has developed INCO terms. These terms define buyer and seller responsibilities at every stage of the shipment. INCO term becomes a part of the agreement between the buyer and seller and is mentioned clearly on all documents. There are 11 known INCO terms. These are as follows:
- EX W – Ex Warehouse
- FCA –Free Carrier
- FAS –Free alongside ship
- FOB –Free on board
- CFR – Cost and Freight
- CIF –Cost insurance and Freight
- CPT – Carriage Paid to
- CIP –Carriage and Insurance paid to
- DAP –Delivered at Place
- DPU – Delivery at place unloaded
- DDP –Delivery duty paid
INCO Terms 2020 is the ninth set of international contract terms published by the International Chamber of Commerce. With the first set having been published in 1936, INCO terms rules are accepted by the government, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. These intend to reduce or remove uncertainties altogether arising from different interpretations of the rules in different countries.
Tasks and responsibilities during a shipment.