INCOTERMS-WORDS USED IN FOREIGN TRADE

INCOTERMS (International Commercial Terms) are a set of standardized terms that define the rights and obligations of buyers and sellers involved in international trade. They are developed and maintained by the International Chamber of Commerce (ICC) and are widely used in commercial transactions worldwide.

The purpose of INCOTERMS is to provide a common language and understanding of the responsibilities, risks, and costs associated with the delivery of goods. 

For all modes of transport:

  • EXW (Ex Works)
  • FCA (Free Carrier)
  • CPT (Carriage Paid To)
  • CIP (Carriage and Insurance Paid To)
  • DAP (Delivered at Place)
  • DDP (Delivered Duty Paid)

For sea and inland waterway transport:

  • FAS (Free Alongside Ship)
  • FOB (Free on Board)
  • CFR (Cost and Freight)
  • CIF (Cost, Insurance, and Freight)
  • DAP (Delivered at Place)

It is important to note that the use of INCOTERMS is voluntary, and parties to a transaction may choose to use other terms or create their own terms. 

FOREIGN TRADE MEANING

AA
AANF
ACU
AEZ
ANF
ACP
AEO
AES
ARO
ASEAN
AU
BCD
BG
BIFR
BOT
BRC
BTP
BIS
CBEC
CCP
CEA
CEC
CED
CENVAT
CETF
CFCs
CG
CGST
CIF
CIN
CIS
CKD
CoD
CoO
CQCTD
CST
CIN
CRES
CSP
CECA
DA
DBK
DC
DDA
DEA
DEL
DES
DFIA
DGCI&S
DPIN
DGFT
DIPP
DoBT
DoC
DeitY
DoT
DRS
DTA
e-BRC
e-IEC
ECA
EDI
ECGC
EEFC
EFC
EFT
EGM
EHTP
EIC
EO
EODC
EOP
EOU
EPC
EPCG
EPO
EXIM
FDI
FE
FEMA
FIEO
FIRC
FOR
FTDO
FTP
FT(R) Rules
FTA
G&J EPC
GATS
GR
GST
HACCP
HHEC
ICD
ICM
IEC
IGST
ISO
IAEA
INFCIRC
IEM
IMSC
IL
ISO
KVIC
LC
LCS
LLPIN
LPG
LoC
LoI
LoP
LUT
MAI
MDA
MEA
MEIS
MRA
MoD
MoF
MSME
NBFC
NC
NFE
NI
NCB
NOC
PDS
PEC
PIC
PRC
PAN
PH
PTA
PSU
R&D
RA
RBI
RCMC
REP
RPA
S/B
SAD
SEI CMM
SEIS
SGST
SIA
SIIC
SION
SKD
SLEPC
STCL
STE
STH
STPI
STR
SUVs
TED
TEE
TH
TPO
TRA
TRQ
TUFS
UAC
UN
VA
WCO

Advance Authorisation
Appendices and Aayaat Niryaat Form
Asian Clearing Union
Agri Export Zone
Aayat Niryaat Form
Accredited Clients Programme
Authorised Economic Operator
Approved Exporter’s Scheme
Advance Release Order
Association of South- East Asian Nations
Actual User
Basic Customs Duty
Bank Guarantee
Board of Industrial and Financial Reconstruction 
Board of Trade
Bank Realisation Certificate
Biotechnology Park
Bureau of Indian Standards
Central Board of Excise and Customs
Customs Clearance Permit
Central Excise Authority
Chartered Engineer Certificate
Central Excise Duty
Central Value Added Tax
Common Effluent Treatment Facility
Common Facility Centres
Capital Goods
Central Goods and Services Tax
Cost, Insurance & Freight
Corporate Identification Number
Commonwealth of Independent States
Completely Knocked Down
Cash on Delivery
Certificate of Origin
Committee on Quality Complaints and Trade Disputes CRES
Central Sales Tax
Company Identification Number
Certification of Registration as Exporter of Spices CEPA
Common Service Provider
Comprehensive Economic Cooperation Agreement CVD
Document against Acceptance
Drawback
Development Commissioner
Diamond Dollar Accounts
Department of Economic Affairs
Denied Entity List
Duty Exemption Schemes
Duty Free Import Authorisation
Director General, Commercial Intelligence & Statistics. DIN
Designated Partner Identification Number
Director General of Foreign Trade
Department of Industrial Policy & Promotion
Department of Bio-Technology
Department of Commerce
Department of Electronics and Information Technology DoR
Department of Telecommunications
Duty Remission Schemes
Domestic Tariff Area
Electronic Bank Realisation Certificate
Electronic Importer-Exporter Code
Enforcement- cum-Adjudication
Electronic Data Interchange
Export Credit Guarantee Corporation
Exchange Earners’ Foreign Currency
Exim Facilitation Committee
Electronic Fund Transfer
Export General Manifest
Electronic Hardware Technology Park
Export Inspection Council
Export Obligation
Export Obligation Discharge Certificate
Export Obligation Period
Export Oriented Unit
Export Promotion Council
Export Promotion Capital Goods
Engineering Process Outsourcing
Export Import
Foreign Direct Investment
Foreign Exchange
Foreign Exchange Management Act
Federation of Indian Export Organisation
Foreign Exchange Inward Remittance Certificate FOB
Freight on Road and Rails
Foreign Trade Development Officer
Foreign Trade Policy
Foreign Trade (Regulation) Rules FTWZ
Free Trade Agreement
Gems & Jewellery Export Promotion Council GOI
General Agreement on Trade in Services
Guarantee of Realisation
Goods and Services Tax
Hazard Analysis and Critical Control Process HBP
Handicraft & Handlooms Exports Corporation ICB
Inland Container Depot
Indian Commercial Mission
Importer Exporter Code
Integrated Goods and Services Tax
International Organisation for Standardisation
International Atomic Energy Agency
International Atomic Energy Agency Information Circular
Industrial Entrepreneurial Memorandum
Inter-Ministerial Standing Committee
Industrial Licensing
International Standards Organisation
Khadi and Village Industries Commission
Letter of Credit
Land Customs Station
Limited Liability Partnership Number
Liquefied Petroleum Gas
Line of Credit
Letter of Intent
Letter of Permit
Legal Undertaking
Market Access Initiative
Market Development Assistance
Ministry of External Affairs
Merchandise Exports from India Scheme
Mutual Recognition Agreements
Ministry of Defence
Ministry of Finance
Ministry of Micro Small and Medium Enterprises MSMED
Non- Banking Financial Company
Norms Committee
Net Foreign Exchange
Non-Infringing
National Competitive Bidding
No Objection Certificate
Public Distribution System
Project and Equipment Corporation of India Ltd.
Policy Interpretation Committee
Policy Relaxation Committee
Permanent  Account Number
Personal Hearing
Preferential Trade Agreement
Public Sector Undertaking
Research and Development
Regional Authority
Reserve Bank of India
Registration-cum-Membership Certificate
Replenishment
Rupee Payment Area
Shipping Bill
Special Additional Duty
Software Engineers Institute’s Capability Maturity Model SEZ
Service Exports from India Scheme
State Goods and Services Tax
Secretariat for Industrial Assistance
State Industrial Infrastructure Corporation
Standard Input Output Norms
Semi- Knocked Down
State Level Export Promotion Committee STC
Spices Trading Corporation Limited
State Trading Enterprise
Star Trading House
Software Technology Park of India
State Trading Regime
Sports Utility Vehicles
Terminal Excise Duty
Towns of Export Excellence
Trading House
Trade Promotion Organization
Telegraphic Release Advice
Tariff Rate Quota
Technology Upgradation Fund Scheme
Units Approval Committee
United Nations
Value Addition
World Customs Organisation