Incoterms Guide

EXW (Ex Works)

The seller delivers when it places the goods at the disposal of the buyer at the seller's premises or another named place. The seller does not load the goods or clear them for export. This term represents the minimum obligation for the seller.

FCA (Free Carrier)

The seller delivers to the carrier or another person nominated by the buyer at the seller's premises or another named place. The seller clears the goods for export where applicable. Risk passes at the named place of delivery.

FAS (Free Alongside Ship)

The seller delivers when goods are placed alongside the vessel at the named port of shipment. Risk passes when the goods are alongside the ship, and the buyer bears costs from that point.

FOB (Free On Board)

The seller delivers when goods are on board the vessel at the named port of shipment or procures the goods already so delivered. Risk passes when the goods are onboard the vessel.

CFR (Cost and Freight)

The seller delivers when goods are on board the vessel or procures goods already so delivered. The seller pays costs and freight to the named port of destination. Risk passes when goods are onboard.

CIF (Cost, Insurance and Freight)

The seller delivers when goods are onboard or procured already so delivered, pays costs and freight to destination, and provides insurance against the buyer's risk during carriage.

CPT (Carriage Paid To)

The seller delivers to the carrier or another person nominated by the seller at an agreed place and pays the costs of carriage to the named place of destination. The seller clears goods for export where applicable.

CIP (Carriage and Insurance Paid To)

The seller delivers to the carrier at an agreed place, pays carriage to the named destination, and provides insurance cover against the buyer's risk during carriage.

DAP (Delivered at Place)

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

DPU (Delivered at Place Unloaded)

The seller bears all risks in bringing goods to and unloading them at the named place of destination. This is the only Incoterms rule that requires the seller to unload goods at destination.

DDP (Delivered Duty Paid)

The seller delivers when goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading. The seller bears all costs and risks, including export and import customs formalities and duties.