Incoterms^® 2020

EXW – Ex Works

Goods are available at the seller’s premises. Buyer pays all transportation costs and bears all risks associated with transport to the final destination. (Can be used for all modes of transit)

FCA – Free Carrier

Seller hands over goods, cleared for export, to the first carrier (named by the Buyer). Seller pays for carriage to the point of delivery. (Can be used for all modes of transit)

FAS – Free Alongside Ship

Seller must place goods, cleared for export, alongside the ship at the named port. (Can only be used inland waterway and sea transport only)

FOB – Free on Board

Seller must load goods, cleared for export, on the vessel named by the Buyer. Cost and risk are divided between Buyer and Seller while goods are actually onboard the vessel. (Can be used for inland waterway and sea transport only)

CFR – Cost and Freight

Seller pays to bring goods to the port of destination; risk is transferred to the Buyer when the goods are loaded on the vessel. (Insurance is not included. Can be used for inland waterway and sea transport only)

CIF – Cost, Insurance, and Freight

Seller pays to bring goods to the port of destination; risk is transferred to the Buyer when the goods are loaded on the vessel. Seller must procure and pay for insurance. (Can be used for inland waterway and sea transport only)

CPT – Carriage Paid To

Seller pays for carriage to a named destination or agreed place. Risk transfers to Buyer upon handing over goods to the first carrier. (Can be used for all modes of transit)

CIP – Carriage and Insurance Paid To

Seller pays for carriage and insurance to destination. Risk transfers to Buyer upon handing over goods to the first carrier. (Can be used for all modes of transit)

DAT – Delivered at Terminal

Seller pays for carriage to the terminal, except costs related to import clearance, and assumes all risks up to the point that goods are unloaded at the terminal. (Can be used for all modes of transit)

DAP – Delivered at Place

Seller pays for carriage to the named place of destination, except costs related to import clearance, and assumes all risks prior to the point that goods are ready for unloading by the Buyer. (Can be used for all modes of transit)

DDP – Delivered Duty Paid

Seller is responsible for delivering goods to the named place in the Buyer’s country, and pays all costs including import duties and taxes. (Can be used for all modes of transit)