Presentation of the Incoterms 2000

The version 2000 of the international chamber of commerce kept the same number of Incoterms that the version 1990, either thirteen, apportion in four families (to see chart below).

  • These thirteen Incoterms also split up in :
    • Incoterms of sale to the departure (E , F, C groups) where the seller fulfills the obligations of delivery in his own country;
    • Incoterms of sale to the arrival (D group safe DAF that belongs to no category) where the delivery takes place in the country of arrival.
Presentation of the Incoterms 2000
Groups Modalities Incoterms 2000
E The seller puts the goods to the disposition of the buyer in his own premises. Ex works(EXW)
F The seller remits the goods to a designated carrier.
The buyer assumes the expenses and risks of the main transportation.
Free Carrier(FCA)
Free Along Side Ship(FAS)
Free On Board(FOB)
C The seller assumes the expenses but don't support the risks incurred during the main transportation. Cost and Freight(CFR)
Cost Insurance and Freight(CIF)
Carriage Paid To(CPT)
Carriage,Insurance Paid To(CIP)
D The seller supports all expenses and the risks that driven the routing of the goods until the place of destination Delivered At Frontier(DAF)
Delivered Ex Ship(DES)
Delivered Ex Quay(DEQ)
Delivered Duty Unpaid(DDU)
Delivered Duty Paid(DDP)

The distinction between the families E, F, C, and D of the Incoterms is very important when commodity is damaged during the transportation

A Cameroonian company sells a product to a French company. During the transportation by sea, commodity is destroyed.The salesperson filled his contract obligations if the contract is concluded according to an Incoterm of the C group (that is to say CFR, CIF, CPT or CIP ) group. On the other hand, in case of use of an Incoterm of the D group ( DAF; DEQ; DDU or DDP ), it didn't execute his contract since the product didn't arrive to the point of agreed destination.
( NB: Therefore dear Tradesmen, think of choosing a precise incoterm for a contract of sale to the international )

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