Are also referred to as Terms of Sale and are standardized trade definitions.
Most commonly used in international contracts, thus reflected on the sales invoice.
Ensure buyers and sellers understand each other's expectations and responsibilities.
Were created by the ICC (International Chamber of Commerce, and are protected by ICC copyright.
Are reviewed every 10 years and regularly updated to keep pace with the ever-changing world of
international trade.
Latest edition is the Incoterms 2000.
The Incoterm utilized in a transaction will dictate which party is responsible for each
transportation segment and it's corresponding contract of carriage. The Incoterm that is utilized
can affect the title passage in foreign trade.
As a general rule, Pre-Carriage, Main-Carriage and On-Carriage should be utilized in connection with
the Incoterms.
Pre-Carriage: the transportation segment from the seller's location to the point where the cargo
would leave from the seller's side. Example, to arrange for pre-carriage, you would contract with an
inland carrier to make delivery to a port or airport.
Main-Carriage: the transportation segment from the seller's side to the buyer's side. Example, to
arrange for main-carriage, you would contract for ocean or air carriage.
On-Carriage: the transportation segment from the point of arrival (on the buyer's side), to the
designated ultimate receiver. Example, to arrange for on-carriage, you would contract with an inland
carrier to make delivery from the port/airport of arrival to the ultimate receiver.
The seller's obligation is fulfilled when the buyer has been notified, and the goods (suitably packed
for export) are available to the buyer, at the named place within the time specified.
The buyer is responsible for all costs and risks, including the loading of the goods from the
named/specified point.
The buyer is responsible to arrange the entire contract of carriage of the goods (pre-carriage,
main-carriage, on-carriage).
The buyer is responsible for the export clearance of the goods. This term should not be used when
the buyer cannot carrier out the export formalities directly or indirectly.
The buyer is responsible for the import clearance of the goods.
Seller's obligation ends when they delivers the goods, cleared for export, to the carrier (any
mode of transport) nominated by the buyer at the named place.
The buyer must contract at his own expense the carriage of the goods from the named place.
However, if it is requested by the buyer or if it is commercial practice and they buyer does not
give instructions to the contrary in due time, the seller may contract for carriage at the
buyer's risk and expense.
Buyer must clear the goods for import.
Seller's obligation and risk to deliver the goods alongside the vessel at the named port of shipment.
Seller must clear the goods for export.
Term used for sea or inland waterway transport only.
Buyer is responsible for all costs and risks to transport the goods to the destination once cargo is
delivered alongside the vessel.
Buyer bears all additional costs as a result of vessel delay or refusal of goods for loading.
Buyer must clear the goods for import at final destination.
The seller's obligation is fulfilled when the buyer has been notified and the goods have passed over
the ship's rail on board the vessel, at the named port. (technically, the seller would be
responsible for U.S. Terminal Handling when using this term, so if the seller does not intend to
deliver the goods across the ship's rail, the FCA term should be used)
The buyer is responsible for all costs and risks associated with the goods after they have passed
over the ship's rail and loaded on board the ship, at the named port.
The buyer is responsible to arrange for the carriage of the goods from the named port of shipment
(the main-carriage and on-carriage).
The seller is required to arrange for the export clearance of the goods.
The buyer is responsible to arrange for the import clearance of the goods.
The seller's obligation is fulfilled when the goods are delivered to a carrier, pass the ship's rail,
and the contract of carriage is arranged, freight prepaid, to the named port.
The buyer is responsible for all risks associated with the goods after they have passed the ship's
rail to be loaded on board the vessel, as well as the costs and risks related to the goods (receipt
of the goods from the carrier) in the importing country.
The seller is responsible to arrange for the pre-carriage and main-carriage of the goods.
The seller is responsible for the export clearance of the goods.
The buyer is responsible for the import clearance of the goods.
The seller's responsibility is fulfilled when the goods are delivered to a carrier, pass the ship's
rail, the contract of carriage is arranged, freight prepaid, to the named port, and insurance is
obtained on the cargo.
The buyer is responsible for all risks associated with the goods after they have passed the ship's
rail to be loaded on board the vessel, as well as the costs and risks related to the goods (receipt
of the goods from the carrier) in the importing country.
The seller is responsible to arrange for the pre-carriage and main-carriage of the goods.
The seller is responsible for the export clearance of the goods.
The buyer is responsible for the import clearance of the goods.
The seller's responsibility is fulfilled when the goods are delivered to a carrier, pass the ship's
rail, the contract of carriage is arranged, freight prepaid, to the named place of destination.
The buyer is responsible for all risks associated with the goods after they have been delivered to
the named place of destination, as well as the costs and risks related to the goods (receipt of the
goods from the carrier) in the importing country, including insurance.
The seller is responsible to arrange for the pre-carriage and main-carriage of the goods.
The seller is responsible for the export clearance of the goods.
The buyer is responsible for the import clearance of the goods.
The seller's obligation is fulfilled when the goods are delivered to a carrier, and the contract of
carriage is arranged, freight prepaid – the named place of destination, and insurance is obtained on
the cargo.
The buyer is responsible for all costs and risks associated with the goods after receipt by the
carrier – prior to loading on board the vessel or aircraft, as well as the costs and risks related
to the goods (receipt of the goods from the carrier) upon arrival in the importing country.
The seller is responsible to arrange for the pre-carriage and main carriage of the goods.
The seller is responsible for the export clearance of the goods.
The buyer is responsible for the import clearance of the goods.
The seller's obligation ends when they have delivered the goods to the disposal of the buyer on the
arriving means of transport not unloaded, cleared for export, but not cleared for import and the
named point and place at the frontier but before the customs border of the adjoining country.
The buyer is responsible for customs clearance, duties, taxes, and delivery to final destination at
the country of import.
When delivery is to take place in the port of destination, on board a vessel, or on the quay
(wharf), the DES or DEQ terms should be used.
The seller's obligation ends when they have delivered the goods to the disposal of the buyer on board
the ship, cleared for export, but not cleared for import but delivered the named port of destination
before discharging.
The buyer is responsible for customs clearance at the country of import and all charges for
discharging off the ship (Destination Unloading, Terminal Handling and/or Container Service
Charges-CSC)
If the seller is also to be responsible for discharging the goods off the ship, then the DEQ term
should be used.
The seller's obligation ends when they have delivered the goods to the disposal of the buyer on board
the ship, cleared for export, but not cleared for import but delivered the named port of destination
after discharging goods off the vessel at the quay (wharf).
The buyer is responsible to clear the goods for import and pay for all formalities, duties, taxes,
and other charges upon import.
If the seller is also to be responsible for delivering the goods past the quay to another place
(warehouse, terminal, etc.) in our outside the port, the DDU or DDP terms should be used.
The seller's obligation is fulfilled when the goods have been made available to the buyer at the
named place of destination – uncleared for importation.
The buyer is responsible for all costs and risks associated with the goods upon importation at the
named place of destination.
The seller is required to arrange for the entire contract of carriage (pre-carriage, main-carriage,
on-carriage) to the named place of destination.
The seller is required to arrange for the export clearance of the goods.
The buyer is responsible for the import clearance of the goods, including the payment of any
applicable duties, taxes and fees.
The seller's obligation is fulfilled when the goods have been made available to the buyer at the
named place of destination – cleared for importation.
The buyer is responsible to take delivery of the goods from the named place of destination.
The seller is required to arrange for the entire contract of carriage (pre-carriage, main-carriage,
on-carriage) to the named place of destination.
The seller is required to arrange for the export clearance of the goods.
The seller is required to arrange for the import clearance of the goods, including the payment of
any applicable duties, taxes and fees.
Any Mode: EXW, FCA, CPT, CIP, DAF, DDU, DDP
Maritime and inland waterways only: FAS, FOB, CFR, CIF, DES, DEQ
Shapiro Mission Statement
It is the mission of Samuel Shapiro & Company, Inc. to achieve, manage and deliver the highest
quality of personalized customer service in all facets of international/domestic transportation and
logistics. We will utilize the knowledge of our skilled employees, our three generations of
experience, our expertise in compliance, and our cutting-edge technological tools, individually
tailored to our client's needs, to achieve this goal.
We will maintain the ethical and professional standards established by Samuel Shapiro in 1915, and
strive to be a model corporate citizen. We will continue to foster a culture of excellence among our
employees, always conscious of our responsibilities to our clients, our Company philosophy, and the
communities in which we live.