Logistics Management – International Logistics Basics

Incoterms – Full List

“Incoterms” stands for “International Commercial Terms”.

EXW (“Ex Works”): The seller / factory will have the goods ready at their factory and warehouse and
the buyer must collect them, load them and do everything else from there.

FCA (“Free Carrier”): The delivery point is to the carrier or other person nominated by the buyer at
the seller’s premises or other agreed place.

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FAS ( “Free Alongside Ship”): The seller delivers the shipment to the buyer when the goods are
alongside the ship.

FOB (“Free on board”): The seller will be responsible for getting the goods “onto” the ship or plane
or truck, then it’s over to the buyer or whatever freight forwarder or freight company the buyer is
using for the next part of the transportation.

CFR (“Cost and Freight”): The seller bears cost and freight of shipment to the destination but the risk
is with the buyer.

CIF (“Cost, Insurance and Freight”): The seller would be paying to cover the buyer’s risk, he would
have insurance just to cover his obligations.

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CPT (“Carriage Paid To”): The seller pays for the main carriage to bring the shipment to an agreed
place.

CIP (“Carriage and Insurance Paid”): The seller delivers the goods and passes the risk to the buyer
upon delivery to the main carrier.

DPU (“Delivered at Place Unloaded”): The seller delivers the goods at the disposal of the buyer after
they’ve been unloaded from the arriving means of transport.

DAP (“Delivered at Place”): The seller is responsible for delivery of the goods, ready for unloading, at the
named place of destination.

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DDP (“Delivery Duty Paid”): The seller is responsible for the entire door to door process and will also
be paying for the customs duties and import VAT themselves.

DDU (“Delivery Duty Unpaid”): The seller is responsible for the entire door to door process but
paying taxes remains the buyers responsibility and is not included.

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