Incoterms Groups

• There are thirteen Incoterms, and they are divided into four groups.
  • Group E: Departure Term.
    • Where the seller makes the goods available to the buyer at the seller's own premises.
  • Group F: Shipment Terms - Main carriage unpaid.
    • Where the seller is called on to deliver the goods to a carrier named by the buyer.
    • These are shipment contracts with the shipment point named, and carriage is unpaid by the seller.
  • Group C: Shipment Terms - Main carriage paid.
    • Where the seller has to contract for carriage, but does not assume the risk of loss of or damage to the goods or additional costs due to events occurring after shipment and dispatch.
    • These are shipment contracts with the destination point named, and carriage paid by the seller.
    • There are two critical division points, one for the division of costs, the other for the division of risk.
  • Group D: Arrival Terms.
    • Where the seller has to bear all costs and risk needed to bring the goods to the country of destination.
    • Carriage is arranged by the seller.
    • These are arrival contracts.

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© 2004 John Michael Pierobon

Notes