In international trade, businesses use the standard trade definitions - Incoterms 2000 - published by the International Chamber of Commerce (ICC) to describe the risks, responsibilities and obligations of the various parties.
Incoterms 2000 is divided into four groups:
E-Group (Starting point/shipment)
EXW Ex Works (place)
F-Group (Main freight not paid)
FCA Free Carrier (place)
FAS Free Alongside Ship (port of shipment)
FOB Free On Board (port of shipment)
C-Group (Main freight paid)
CFR Cost and Freight (port of destination)
CIF Cost, Insurance and Freight (port of destination)
CPT Carriage Paid to (place of destination)
CIP Carriage and Insurance Paid to (place of destination)
D-Group (Destination/Arrival)
DAF Delivered At Frontier (place)
DES Delivered Ex Ship (port of destination)
DEQ Delivered Ex Quay (port of destination)
DDU Delivered Duty Unpaid (place of destination)
DDP Delivered Duty Paid (place of destination)
Use the right delivery terms
Land transport:
EXW, FCA, CPT, CIP, DAF, DDU, DDP
Air transport:
EXW, FCA, CPT, CIP
Rail transport:
EXW, FCA, CPT, CIP
Sea/inland waterway transport:
EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DES, DEQ