Incoterms 2010 were drafted by the ICC (International Chamber of Commerce) to clarify the obligations of the parties in international trade contracts and reduce legal disputes.

Below is a summary of the Incoterms 2010 conditions, categorized by the seller's responsibilities from least to most

*Condition names are arranged according to increasing responsibilities of the seller.

• Group E (Seller has minimal responsibility)
  1. EXW : Ex Works

  Seller's Obligation: Provide the goods at their premises; the buyer bears all costs and risks from the seller’s location to the final destination.

  + Note: Should not be used if the buyer cannot handle export procedures.

  + Example Price: 200 USD/MT EXW, 200 Nguyen Son Street, Ward 2, Tan Phu District, HCM City. Incoterms 2010.

• Group F: Seller’s responsibility involves delivering to the carrier.
  2. FCA : Free Carrier

  Seller's Obligation: Load the goods onto the carrier nominated by the buyer; if at the seller’s premises, also handle export procedures.

  Example Price: 200 USD/MT FCA, 306 Nguyen Kiem Street, Ward 3, Phu Nhuan District, HCM City. Incoterms 2010.

  3. FAS (Free Alongside Ship) – Free Alongside Ship:

  Seller's Obligation: Provide the goods and deliver them alongside the ship at the port of shipment; the buyer bears costs from this point onward.

  Example Price: 300 USD/MT FAS Cat Lai Port, HCM City. Incoterms 2010.

  4. FOB : Free on Board

  Seller's Obligation: Deliver the goods on board the ship and handle export procedures; the buyer is responsible from the point the goods are on board.

  Example Price: 300 USD/MT FOB, Cat Lai Port, HCM City. Incoterms 2010.

• Group C: Seller covers costs, but risk transfers earlier.
  5. CFR (Cost and Freight)

  Seller's Obligation: Pay for the transportation from the port of shipment to the destination port, including shipping costs; handle export procedures.

  Example Price: 200 USD/MT CFR, Long Beach Port, USA. Incoterms 2010.

  6. CIF (Cost, Insurance and Freight)

  Seller's Obligation: Cover the costs of transport, insurance, and freight to the destination port; handle export procedures.

  Minimum Insurance Price: Goods value + 10% = 110% (currency of the contract)

  Example Price: 200 USD/MT CIF, Long Beach Port, USA. Incoterms 2010.

  7. CPT (Carriage Paid To)

  Seller's Obligation: Pay for transportation to the specified destination; handle export procedures.

  Example Price: 200 USD/MT CPT, New York, USA. Incoterms 2010.

  8. CIP (Carriage and Insurance Paid To)

  Seller's Obligation: Cover transportation and insurance costs to the specified destination; handle export procedures.

  Example Price: 200 USD/MT CIP, New York, USA. Incoterms 2010.

• Group D
  9. DAT (Delivered at Terminal)

  Seller's Obligation: Deliver the goods unloaded from the transport vehicle to a specified terminal; bear all costs and risks until this point; handle export procedures.

  Example Price: 300 USD/MT DAT, Oakland (CFS/CY), USA. Incoterms 2010.

  10. DAP (Delivered at Place)

  Seller's Obligation: Bear all costs and risks until the goods are placed on the transport vehicle ready for unloading at the destination; handle export procedures.

  Example Price: 200 USD/MT DAP, New York, USA. Incoterms 2010.

  11. DDP (Delivered Duty Paid)

  Seller's Obligation: Cover all costs and risks, including import duties, until the goods are delivered to the destination; handle both export and import procedures.

  Example Price: 200 USD/MT DDP, New York, USA. Incoterms 2010.