Incoterm: Group E - Departure
Incoterm: Group E - Departure
Incoterm: Group E - Departure
Incoterms or International Commercial terms are a series of international sales with terms, published by
International Chamber of Commerce (ICC) and widely used in international commercial transactions. These are
accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly
used terms in international trade. This reduces or removes altogether uncertainties arising from different
interpretation of such terms in different countries. Scope of this is limited to matters relating to rights and
obligations of the parties to the contract of sale with respect to the delivery of goods sold. They are used to
divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation
practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. The
first version was introduced in 1936 and the present dates from 2000.
As of January 1, 2011 the eighth edition, Incoterms 2010,[1][2] have effect. The changes therein affect all of the
five terms previously listed in section D, which are now obsolete and have been replaced with these three:
Group E – Departure
EXW – Ex Works (named place)
The seller makes the goods available at his premises. The buyer is responsible for all charges.
This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The Ex
Works term is often used when making an initial quotation for the sale of goods without any costs included.
EXW means that a seller has the goods ready for collection at his premises (Works, factory, warehouse, plant)
on the date agreed upon.
The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination.
Group D – Arrival
This section is outdated. Please update this section to reflect recent events or newly available
information. Please see the talk page for more information. (December 2010)
new arrival incoterms have been discussed in the Incoterms 2010 brought out by the ICC and DAT and DAP
have replaced DAF,DES,DEQ and DDU Given here is a small explanation provided by the ICC Two new
Incoterms rules – DAT and DAP – have replaced the Incoterms 2000 rules DAF, DES, DEQ and DDU
The number of Incoterms® rules has been reduced from 13 to 11. This has been achieved by substituting two
new rules that may be used irrespective of the agreed mode of transport – DAT, Delivered at Terminal, and
DAP, Delivered at Place – for the Incoterms® 2000 rules DAF, DES, DEQ and DDU.
Under both new rules, delivery occurs at a named destination: in DAT, at the buyer’s disposal unloaded from the
arriving vehicle (as under the former DEQ rule); in DAP, likewise at the buyer’s disposal, but ready for
unloading (as under the former DAF, DES and DDU rules).
The new rules make the Incoterms® 2000 rules DES and DEQ superfluous. The named terminal in DAT may
well be in a port, and DAT can therefore safely be used in cases where the Incoterms® 2000 rule DEQ once
was. Likewise, the arriving “vehicle” under DAP may well be a ship and the named place of destination may
well be a port: consequently, DAP can safely be used in cases where the Incoterms® 2000 rule DES once was.
These new rules, like their predecessors, are “delivered”, with the seller bearing all the costs (other than those
related to import clearance, where applicable) and risks involved in bringing the goods to the named place of
destination.
Summary of terms
NOTE: The following information refers to Incoterms 2000 and is now replaced with different information in
Incoterms 2010[3] For a given term, "Yes" indicates that the seller has the responsibility to provide the service
included in the price. "No" indicates it is the buyer's responsibility. If insurance is not included in the term (for
example, CFR) then insurance for transport is the responsibility of the buyer or the seller depending on who
owns the cargo at time of transport. In the case of CFR terms, it would be the buyer while in the case of CIF or
CIP terms, it would be the seller.
Unloa Landin Unload
Landing Entry
Loa Export- Transpor d from g Transpor onto Transport Entry -
charges -
Incoterm d to duty t to truck charges t to trucks to Insuranc Customs
at Dutie
s truc paymen exporter' at port at port importer' from the destinatio e clearanc
importer' s and
k t s port of of s port importer n e
s port Taxes
origin origin s' port
EXW No No No No No No No No No No No No
FCA Yes Yes Yes No No No No No No No No No
FAS Yes Yes Yes Yes No No No No No No No No
FOB Yes Yes Yes Yes Yes No No No No No No No
CFR Yes Yes Yes Yes Yes Yes Yes No No No No No
CIF Yes Yes Yes Yes Yes Yes No No No Yes No No
CPT Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No
CIP Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No
DAF Yes Yes Yes Yes Yes Yes No No No No No No
DES Yes Yes Yes Yes Yes Yes No No No No No No
DEQ Yes Yes Yes Yes Yes Yes Yes No No No No No
DDU Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No
DDP Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes