Incoterms make international trade easier and help traders in different countries to understand one another. These standard trade definitions are most commonly used in international contracts and are protected by ICC copyright.

When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit. The following chart summarizes the responsibilities of both the buyer and seller for each of the current 13 INCOTERMS. In addition, a definition for each term is included at the bottom of the page.
 

 

EXW
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DAF
DES
DEQ
DDU
DDP
SERVICES
Ex Works
Free Carrier
Free Alongside Ship
Free Onboard Vessel
Cost & Freight
Cost Insurance & Freight
Carriage Paid To
Carriage Insurance Paid To
Delivered At Frontier
Delivered Ex Ship
Delivered Ex Quay Duty Unpaid
Delivered Duty Unpaid
Delivered
Duty
Paid
Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Buyer

Buyer/
Seller*

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Forwarder's Fees

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Loading On Vessel

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Ocean/Air Freight

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Charges On  Arrival At Destination

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Buyer

Buyer

Seller

Seller

Seller

Duty, Taxes
& Customs Clearance

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Delivery To Destination

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Seller

 
Origin Terms

EXW - Ex-Works, named place where shipment is available to the buyer, not loaded.
            The seller will not contract for any transportation.

International Carriage NOT Paid by Seller

FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded.
          This term can be used for any mode of transport.

FAS - Free Alongside Ship, named ocean port of shipment.
           Ocean shipments that are NOT containerized.

FOB - Free On Board vessel, named ocean port of shipment.
          This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

International Carriage Paid by the Seller

CFR - Cost and Freight, Named ocean port of destination.
          This term is used for ocean shipments that are not containerized.

CIF - Cost, Insurance and Freight, named ocean port of destination.
          This term is used for ocean shipments that are not containerized.

CPT - Carriage Paid To, named place or port of destination.
           This term is used for air or ocean containerized and roll-on roll-off shipments.

CIP - Carriage and Insurance Paid To, named place or port of destination.
          This term is used for air or ocean containerized and roll-on roll-off shipments.

Arrival at Stated Destination

DAF - Delivered at Frontier, named place of destination, by land, not unloaded.
           This term is used for any mode of transportation but must be delivered by land.

DES - Delivered Ex-Ship, named port of destination, not unloaded.
           This term is used for ocean shipments only.

DEQ - Delivered Ex-Quay, named port of destination, unloaded, not cleared.
           This term is used for ocean shipments only.

DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
            This term is used for any mode of transportation.

DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
           This term is used for any mode of transportation.

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