INCOTERMS

EXW

A shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs. Once buyers have their goods, they are responsible for all risks & costs.

FCA

A trade term dictating that a seller is responsible for the delivery of goods to a specific destination. The destination is usually a named airport, terminal or other location where the chosen carrier operates. Seller includes transportation costs in to its price and assumes risk of loss until the carrier receives the goods. At this point, the buyer assumes all other responsibility. Seller is not responsible for unloading goods at destination.

Importer

Buyer

CPT (insert named place of destination)

Carriage Paid To

CIP (insert named place of destination)

Carriage and Insurance Paid To

CFR (insert named port of destination)

Cost and Freight

CIF (insert named port of destination)

Cost, Insurance and Freight

FOB

The seller clears the goods for export and ensures they are delivered to and loaded onto the vessel for transport at the named port of departure. The buyer takes over risk and costs, including import clearance and duties, as soon as the goods are loaded onto the transport vessel at the port of departure. Only applies to ocean or inland waterway transport & usually bulk cargo and freight from Asia.

When was the latest form of Incoterms publicated?

01.01.2020

How many incoterms are there?

11

DDP (insert named place of destination)

Delivered Duty Paid

DPU (insert named place of destination)

Delivered Place Unloaded

DAP (insert named place of destination)

Delivered at Place

EXW (insert named place of delivery)

EX Works

FCA (insert named of delivery)

Free Carrier

FAS (insert named port of shipment)

Free alongside ship

FOB (insert named port of shipment)

Free on Board

DPU

Requires the seller to deliver the goods at the disposal of the buyer after they've been unloaded from the arriving means of transport. The only Incoterms rule that requires the seller to unload goods at the place of destination. Requires the seller to clear goods for export, where applicable, without any obligation to clear the goods for import, pay import duty or carry out import customs formalities. The buyer and seller should specify and agree upon a named place of destination.

CPT

Rules require the seller to clear the goods and arrange carriage (by one or more transport modes) to the named place of destination. The seller does not need to obtain or pay for insurance. The seller's risk ends, and the buyer's risk begins, when the first carrier receives the goods from the seller. However, the buyer is only responsible for additional costs after the goods arrive at the final destination. Often used in air freight, CONTAINERIZED ocean freight, small parcel shipments and "ro-ro" shipments of motor vehicles. The seller is obligated to secure all-risk insurance coverage.

Exporter

Seller

CIP

The seller assumes all risk until the goods are delivered to the first carrier at the place of shipment—not the place of destination. Once the goods are delivered to the first carrier, the buyer is responsible for all risks. However, the seller is responsible for the cost of carriage as well as all-risk insurance coverage until the freight reaches the named place of destination. The seller is obligated to secure all-risk insurance coverage.

CIF

The seller delivers the goods, cleared for export, onboard the vessel at the port of shipment, pays for the transport of the goods to the port of destination, and also obtains and pays for minimum insurance coverage on the goods through their journey to the named port of destination. The buyer assumes all risk once the goods are on board the vessel for the main carriage; however, they don't take on any costs until the freight arrives at the named port of destination. CIF applies to ocean or inland waterway transport only. It is commonly used for bulk cargo, oversized or overweight shipments. Seller is obligated to secure insurance for the buyer but at minimum coverage.

CFR

The seller is required to clear the goods for export, deliver them onboard the ship at the port of departure, and pay for transport of the goods to the named port of destination. The risk passes from seller to buyer when the seller delivers the goods onboard the ship. The buyer is responsible for paying all additional transport costs from the port of destination, including import clearance and duties. Only use CFR for ocean or inland waterway transport. Not for uncontainable goods.

FAS

This rule is restricted to goods transported by sea or inland waterways. Should be used in situations where the seller has direct access to the vessel for loading (e.g. bulk cargos or non-containerized goods). Seller delivers goods, cleared for export, alongside the vessel at a named port, at which point risk is transferred to the buyer. Buyer is responsible for loading the goods and all costs thereafter.

DDP

the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. The seller must pay both export and import formalities, fees, duties and taxes. The seller is not obligated to insure the goods for pre-carriage or main carriage. The buyer is free of any risk or cost until the goods are unloaded from the vehicle at the named place of destination, usually the buyer's place of business. DDP is the only Incoterms rule that places responsibility for import clearance and payment of taxes and/or import duty on the seller.

DAP

the seller is responsible for delivery of the goods, ready for unloading, at the named place of destination. The seller assumes all risks involved up to unloading. Unloading is at the buyer's risk and cost.DAP can apply to any—and more than one—mode of transport. The buyer and seller should specify and agree upon the precise unloading spot at the named place of destination. Unless otherwise agreed between both parties, the seller cannot request renumeration for unloading costs incurred under the contract of carriage. DAP rules require the seller to clear goods for export, where applicable, without any obligation to clear the goods for import, pay import duty or carry out import customs formalities.