Preambles to Incoterms 2000 Courtesy of ICC
Incoterms 2000 provides Preambles explaining the function of each Incoterm. These are reproduced
in full for visitors to this site. For example, the Preamble to FAS FREE ALONGSIDE SHIP states that
under FAS the seller delivers when the goods are placed alongside the vessel at the named port of
shipment. "The buyer has to bear all costs and risks of loss of or damage to the goods from that
moment."
Click on any of the 13 terms listed below and read a concise definition from the Preambles to
Incoterms 2000. Several of the Preambles, marked below with an *, include a footnote referring to the
Introduction. Click anywhere on those pages to view the relevant part of the Introduction. Please note
that the terms will appear on your screen in read-only format and so cannot be copied or printed.

User may buy the complete guide at the ICC Site.

EXW EX WORKS (…named place)*
FCA FREE CARRIER (…named place)
FAS FREE ALONGSIDE SHIP (…named port of shipment)*
FOB FREE ON BOARD (…named port of shipment)
CFR COST AND FREIGHT (…named port of destination)
CIF COST, INSURANCE AND FREIGHT (…named port of destination)*
CPT CARRIAGE PAID TO (…named place of destination)
CIP CARRIAGE AND INSURANCE PAID TO (…named place of destination)*
DAF DELIVERED AT FRONTIER (…named place)*
DES DELIVERED EX SHIP (…named port of destination)
DEQ DELIVERED EX QUAY (…named port of destination)*
DDU DELIVERED DUTY UNPAID (…named place of destination)*
DDP DELIVERED DUTY PAID (…named place of destination)*

 

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ICC recommends that "Incoterms 2000" be referred to specifically whenever the terms are used,
together with a location. For example, the term "Delivered at Frontier" (DAF) should always be
accompanied by a reference to an exact place and the frontier to which delivery is to be made.


Here are three examples of correct use of Incoterms:
FCA Kuala Lumpur Incoterms 2000
FOB Liverpool Incoterms 2000
DDU Frankfurt Schmidt GmbH Warehouse 4 Incoterms 2000