Import
To bring goods from overseas into one's country.

Incoterms 2010
A set of rules for the interpretation of the most commonly used trade terms in foreign trade, recognised throughout the world, issued by the International Chamber of Commerce, as their publication 715. It is most strongly recommended that every exporter and importer has a copy of "Incoterms 2010". These are available from us, see our Bookshop page. The 11 trade terms are summarised very briefly here.

       Rules for any mode or modes of transport
       especially airfreight, FCL and LCL seafreight

         - EXW  Ex Works (named place)
           The seller's only responsibility is to make the goods available at his premises, (ie works or factory). The buyer
           bears the full cost and risk involved in bringing the goods from there to the desired destination and the buyer
           must be able to carry out any required export formalities.
           The term represents the minimum obligation for the seller.

         - FCA  Free Carrier (named place).
           The Seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the
           charge of a carrier, or another person, named by the buyer at the named place or point.
           This term may be used for any mode of transport, including multi-modal transport.

         - CPT  Carriage Paid To (named place of destination)
             The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk
             of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been
             delivered into the custody of the carrier. 
             Being based on FCA, this term may be used for any mode of transport.

         - CIP  Cost and Insurance Paid to (named place of destination)
             This term is similar to CPT but with the addition that the seller has to procure marine insurance against the
             buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from
             the carrier to the buyer.
             Being based on FCA, this term may be used for any mode of transport.

         - DAT  Delivered at Terminal (named place of destination)
           The seller fulfils his obligation to deliver when the goods have been made available, unloaded, at an agreed
           terminal (usually a container yard, forwarder’s warehouse etc) at the named place in the country of importation
           The seller has to bear the risks and all costs and other charges of delivering the goods thereto, but not
           including duties and taxes. The buyer is responsible for customs clearance, and if he fails to do this, he is
           responsible for the consequences.
           This term may be used for all modes of transport.

         - DAP  Delivered at Place (named place of destination)
           The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the
           named place in the country of importation. The seller has to bear the risks and all costs and other charges of
           delivering the goods thereto, but not including duties and taxes. The buyer is responsible for customs
           clearance, and if he fails to do this, he is responsible for the consequences. The buyer must unload the goods
           from the arriving means of transport.
           This term may be used for all modes of transport.

         - DDP  Delivered Duty Paid (named place of destination)
           The seller fulfils his obligation to deliver when the goods have been made available at an agreed point at the
           named place in the country of importation, often the buyer's premises. The seller has to bear the risks and all
           costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.
           This term should not be used if the seller is unable directly or indirectly to obtain any necessary import licence
           or approval.
           This term may be used for all modes of transport.


       Rules for Maritime transport
       especially bulk and break-bulk seafreight but not for airfreight, FCL and LCL seafreight

         - FAS  Free Alongside Ship (named port of shipment)
           The seller fulfils his obligation to deliver when the goods are placed alongside the vessel at the named port of
           shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from
           that point. The seller is responsible to clear the goods for export.
           This term can only be used for sea or inland waterway transport and its correct use is only when using a
           chartered ship, or when goods are not containerised.

         - FOB  Free On Board (named port of shipment)
           The seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of
           shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from
           that point. The seller is responsible to clear the goods for export.
           This term can only be used for sea or inland waterway transport. This is probably the most commonly misused
           term in international trade. Its correct use now is only where the ship's rail is relevant to the transaction, such
           as when using a chartered ship, or when goods are not containerised. Obviously it cannot apply to airfreight.

         - CFR  Cost and Freight (named port of destination)
           The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk
           of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's
           rail in the port of shipment. The seller is responsible to clear the goods for export.
           This term very specifically requires the carriage of the goods in a "seagoing vessel".

         - CIF  Cost, Insurance and Freight (named port of destination)
             This term is similar to CFR but with the addition that the seller has to procure marine insurance against the
             buyer's risk of loss of or damage to the goods.
             This term very specifically requires the carriage of the goods in a "seagoing vessel".

       Out-dated terms

         - C&F  was replaced in Incoterms 1990 with CFR, but is still commonly mis-used.

           DAF, DES, DDU were replaced in Incoterms 2010 with DAP

           DEQ was replaced in Incoterms 2010 with DAT

         - FIS  Free into Store
           an unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. This is
           similar in effect to DDP.

Insurance
A process whereby someone with a risk of something happening to their financial detriment (the assured) pays someone else (an underwriter) a fee (premium) to bear that risk on their behalf.

         - Insurance Certificate
           A certificate issued by the insurance underwriter giving details of a particular transaction which is held insured
           under an insurance policy.

         - Insurance Policy
           Contract of insurance

         - Marine insurance
           Insurance covering the international, and often local, transport of goods. Generally covers "all risks" plus war
           and strikes risks, and is taken out for 110% of the CIF/CIP value of the goods.