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Import Export Hub


Incoterms® rules are a globally recognised term of trade related to the sale of goods that clearly define the key responsibilities of buyers and sellers within the undertaking of a contract. The International Chamber of Commerce issue updated rules every ten years and the most up-to-date set of terms is Incoterms® 2020.

It is important to agree Incoterms early in the importing process. When importing, the University's preferred Incoterms are DDP, meaning that the supplier will be legally responsible for submitting the import declaration in the UK and paying any VAT & duty on import. However, DDP is often misunderstood and if not applied correctly, can result in the University becoming the importer, perhaps unexpectedly, creating additional costs and administration. Where DDP is not suitable, DAP is commonly used but you should be aware of what obligations and costs this places on the University.

There are 11 Incoterms® available to use with each one providing both the buyer and seller of goods the obligations, the transfer of risk and the costs. Incoterms® rules are applied based on the contract of sale

7 Incoterms® rules can be applied to any mode of transport:

EXW – Ex works
FCA – Free Carrier
CPT – Carriage Paid To
CIP – Carriage and Insurance Paid To
DAP – Delivered at Place
DPU – Delivered at Place Unloaded
DDP – Delivered Duty Paid

4 Incoterms® rules be applied for sea and inland waterway transport only

FAS – Free Alongside Ship
FOB – Free On Board
CFR – Costs and Freight
CIF – Cost Insurance and Freight

A brief guide can be accessed here.

Please contact the Import Export hub if you require further guidance on the correct use of Incoterms.

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