Incoterms Export Loading Delivery to Export Origin Loading on Carriage Insurance Destination Delivery to Unloading Import

2020 Packaging Charges Port/Place Duty, Taxes terminal Carriages Charges Terminal Destination at Duty, Taxes
& Custom Charges Charges Destination & Customs
Clearance Clearance

EXW Seller Buyer Buyer Buyer Buyer Buyer Buyer Negotiable Buyer Buyer Buyer Buyer
FCA Seller Seller Seller Seller Buyer Buyer Buyer Negotiable Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Seller Seller Buyer Buyer Negotiable Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Seller Seller Buyer Negotiable Buyer Buyer Buyer Buyer
CFR Seller Seller Seller Seller Seller Seller Seller Negotiable Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Seller Seller Negotiable Seller Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Negotiable Seller Seller Buyer Buyer
DPU Seller Seller Seller Seller Seller Seller Seller Negotiable Seller Seller Seller Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Negotiable Seller Seller Buyer Seller
Incoterm 2020
EXW - Ex-Works,

 Ex works is when the seller places the goods at the disposal of the buyer at the seller’s
premises or at another named place (i.e., works, factory, warehouse, etc.).
 The seller does not need to load the goods on any collecting vehicle. Nor does it need to
clear them for export, where such clearance is applicable.

FCA - Free Carrier

 The seller delivers the goods to the carrier or another person nominated by the buyer at
the seller’s premises or another named place.
 The parties are well advised to specify as explicitly as possible the point within the
named place of delivery, as the risk passes to the buyer at that point.

FAS - Free Alongside Ship

 The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment.
 The risk of loss of or damage to the goods passes when the products are alongside the
ship. The buyer bears all costs from that moment onwards.

FOB - Free On Board:

 The seller delivers the goods on board the vessel nominated by the buyer at the named
port of shipment or procures the goods already so delivered.
 The risk of loss of or damage to the goods passes when the products are on board the
vessel. The buyer bears all costs from that moment onwards.

CFR - Cost and Freight,

 The seller delivers the goods on board the vessel or procures the goods already so
delivered.
 The risk of loss of or damage to the goods passes when the products are on board the
vessel.
 The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.
CIF - Cost, Insurance and Freight

 The seller delivers the goods on board the vessel or procures the goods already so
delivered. The risk of loss of or damage to the goods passes when the products are on the
ship.
 The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.
 The seller also contracts for insurance cover against the buyer’s risk of loss of or damage
to the goods during the carriage.
 The buyer should note that under CIF the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need
either to agree as much expressly with the seller or to make its own extra insurance
arrangements.

CPT - Carriage Paid To:

 The seller delivers the goods to the carrier or another person nominated by the seller at an
agreed place (if any such site is agreed between parties).
 The seller must contract for and pay the costs of carriage necessary to bring the goods to
the named place of destination.

CIP - Carriage and Insurance Paid To

 The seller has the same responsibilities as CPT, but they also contract for insurance cover
against the buyer’s risk of loss of or damage to the goods during the carriage.
 The buyer should note that under CIP the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need
either to agree as much expressly with the seller or to make its own extra insurance
arrangements.

DAP - Delivered At

 The seller delivers when the goods are placed at the disposal of the buyer on the arriving
means of transport ready for unloading at the named place of destination.
 The seller bears all risks involved in bringing the goods to the named place.

DPU - Delivered At Place Unloaded

  DPU replaces the former Incoterm® DAT (Delivered At Terminal). The seller delivers
when the goods, once unloaded are placed at the disposal of the buyer at a named place of
destination.
 The seller bears all risks involved in bringing the goods to, and unloading them at the
named place of destination.

DDP - Delivered Duty Paid

 The seller delivers the goods when the goods are placed at the disposal of the buyer,
cleared for import on the arriving means of transport ready for unloading at the named
place of destination.
 The seller bears all the costs and risks involved in bringing the goods to the place of
destination. They must clear the products not only for export but also for import, to pay
any duty for both export and import and to carry out all customs formalities.
Incoterms Warehouse Export Transport Unload Landing on Air, Ocean Unload Load onto Transport Insurance Entry - Customs
2000 Loading Customs to port of from truck vessel at Freight from vessel truck from to Customs Duties and
Duty loading at port of origin's at the destination clearance Taxes at
origin port destination importers' entry
port

EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CFR Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller Buyer Buyer
CPT Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller Buyer Buyer
DAF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
DES Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Seller Buyer Buyer
DEQ Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Seller Buyer Buyer
DDU Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Incoterm 2000:
 EXW - Ex-Works, seller is not responsible for international transportation.
EXW places maximum responsibility on the buyer and minimum on to the
seller. In this transaction the merchandise is made available at seller
facility and the buyer is responsible for all the shipping arrangements – pre
carriage, loading on vessel, insurance, ocean freight, unloading at
destination, inland transportation and customs clearance.
 FCA - Free Carrier arrange warehouse loading and inland transportation to
port of loading is seller’s responsibilities, but he is acting at the risk and the
expense of the buyer. The Buyer is responsible for the insurance.
 FAS - Free Alongside Ship is popular way of transportation for non
containerized ocean shipments. Shipper is responsible for export
clearance of the merchandise and transfer is accomplished when the
goods are turned over to buyer for transportation and insurance.
 FOB - Free On Board: Seller turns over to the buyer responsibility when
cargo pass ship’s rail. Buyer is liable for all the risk and damages of the
goods after the cargo has been loaded on the vessel. Free on board also
known as freight on board is one of the most common terms of
transportation.
 CFR - Cost and Freight, this is term defines shipper responsibility for
ocean transportation of the goods to port of destination. Buyer covers
insurance from the port of origin to port of destination.
 CIF - Cost, Insurance and Freight shipping arrangement is very similar to
CFR, but seller is the one insuring the goods to the port of destination.
Transfer of responsibility is accomplished at port of destination. Buyer
covers all related charges with import custom clearance.
 CPT - Carriage Paid To: seller assumes the delivery risk and
transportation to named place. Buyer assumes the cargo insurance,
custom clearance. CPT arrangement is really common in air and
containerized ocean shipments.
 CIP - Carriage and Insurance Paid To assumes the risk for delivery of
goods and providing the insurance to named place destination. Buyer is
responsible for custom duties and taxes. CIP term arrange usually
multimodal transportation.
 DAF - Delivered At Frontier, by land, not unloaded. Seller is responsible for
cargo delivery to a border cross frontier and buyer assumes responsibility
to arrange transportation across the border, import customs clearance and
taxes payment.
 DES - Delivered Ex-Ship involves goods delivery on ocean vessel at
designated port of destination, not unloading at seller’s expense. Buyer
pays for vessel unloading fee, insurance and customs clearance and
taxes. Any expenses after ship arrival are buyer’s responsibility.
 DEQ - Delivered Ex-Quay involves ocean delivery of merchandise to
named port of destination at shipper’s expenses. Shipper assumes
responsibility for vessel unloading charges, but no further inland
transportation. Buyer is responsible for customs clearance.
 DDU - Delivered Duty Unpaid involves seller responsibility for cargo
delivery to final destination but not unloaded and not cleared. Buyer is
responsible for custom duties and taxes. The s may decide not to insure
the goods at his own risk.
 DDP - Delivered Duty Paid arrange shipper responsibilities for most of the
expenses. It is common term for courier or intermodal type of
transportation. The shipper is responsible for freight delivery at seller
facility and customs clearance. The shipper may decide not to insure the
freight at his own risk.