INCO Terms, International Terms of Trade

The Incoterms are the terms of trade used for international transactions, published by the International Chamber of Commerce. Through the use of these terms the responsibilities of the seller and buyer are determined. Some of the most common are listed below, for more information on INCOterms you should visit the International Chamber of Commerce web page, at http://www.iccwbo.org/incoterms/id3040/index.html .

the official text of ICC Incoterms 2000 (ICC publication N° 560 - ISBN 92.842.1199.9 ) is available from www.iccbooks.com.

* Incoterms is a trademark of ICC, registered in the European Community and elsewhere.

EXW - EX-WORKS  
This term means that the exporter is only responsible for having the goods ready for export at their premises. The Buyer is responsible for all costs in having the goods cleared for export, delivery to the port in the country of export and for all international freight costs, insurance costs, Customs clearance, local port charges and delivery in Australia.
FOB - FREE ON BOARD  
This term means that the seller is responsible for getting the goods cleared for export, all local transport in the country of origin and delivery to the point of export. The buyer is responsible for the overseas transport, insurance, Customs clearance, local port charges and delivery on arrival in Australia. Usually this term will include a named export port for example FOB Shanghai.
CIF - COST INSURANCE AND FREIGHT  
This term should also include a named port for example, CIF Brisbane, it means that the seller is responsible for all costs including the overseas freight and insurance in getting the goods to the port of Brisbane. When the goods have arrived the buyer is responsible for the Customs Clearance, local port charges and delivery of the goods.
DDU - DELIVERED DUTY UNPAID  
This term indicates that the seller is responsible for getting the goods delivered to the purchaser, so the seller is responsible for all costs except for the Customs Duty and GST payable on the goods. The buyer must pay the Customs Duty and GST payable on arrival.
DDP - DELIVERED DUTY PAID  
Same as the term above except that the seller is also responsible for the payment of the Customs Duty and the GST on arival.