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Preambles to Incoterms 2000 :

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.

  • DDP DELIVERED DUTY PAID (named place of destination)
  • 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)
  • DES DELIVERED EX SHIP (named port of destination)
  • DEQ DELIVERED EX QUAY (named port of destination)
  • DDU DELIVERED DUTY UNPAID (named place of destination)

SCL Logistic (India) Private Limited. 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:

  1. FCA Kuala Lumpur Incoterms 2000
  2. FOB Liverpool Incoterms 2000
  3. DDU Frankfurt Schmidt GmbH Warehouse 4 Incoterms 2000