1.- What to say: Incoterms.

The Incoterms rules or International Commercial terms are a series of commercial terms published by the International Chamber of Commerce widely used in international commercial transactions. The Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade.

The Incoterms rules began development in 1921 with the forming of the idea by the International Chamber of Commerce. In 1936, the first set of the Incoterms rules was published. The eighth and current version of the Incoterms rules—Incoterms 2010—was published on January 1, 2011.

The seven rules defined by Incoterms 2010 for any modes of transportation are:

• EXW – Ex Works (named place of delivery): The seller makes the goods available at its premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination.
• FCA – Free Carrier (named place of delivery): The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.
• CPT - Carriage Paid To (named place of destination): The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier.
• CIP – Carriage and Insurance Paid to (named place of destination): Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
• DAT – Delivered at Terminal (named terminal at port or place of destination): Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
• DAP – Delivered at Place (named place of destination): Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.
• DDP – Delivered Duty Paid (named place of destination): Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer.

The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are:

• FAS – Free Alongside Ship (named port of shipment): The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export.
• FOB – Free on Board (named port of shipment): The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel. The seller must clear the goods for export.
• CFR – Cost and Freight (named port of destination): Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel.
• CIF – Cost, Insurance and Freight (named port of destination): Exactly the same as CFR except that the seller must in addition procure and pay for the insurance.

Adapted from http://en.wikipedia.org/wiki/Incoterms.