INCOTERMS
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INCOTERMS

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.

 
EXW
FCA
FAS
FOB
CFR
CIF
CPT
SERVICES
Ex Works
Free Carrier
Free Alongside Ship
Free Onboard Vessel
Cost & Freight
Cost Insurance & Freight
Carriage Paid To
Warehouse Storage
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Warehouse Labor
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Export Packing
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Loading Charges
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Inland Freight
Buyer
Buyer/ Seller*
Seller
Seller
Seller
Seller
Seller
Terminal Charges
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Forwarder's Fees
Buyer
Buyer
Buyer
Buyer
Seller
Seller
Seller
Loading On Vessel
Buyer
Buyer
Buyer
Seller
Seller
Seller
Seller
Ocean/Air Freight
Buyer
Buyer
Buyer
Buyer
Seller
Seller
Seller
Charges On Arrival At Destination
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Duty, Taxes & Customs Clearance
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Delivery To Destination
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer

 
CIP
DAF
DES
DEQ
DDU
DDP
SERVICES
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
Warehouse Labor
Seller
Seller
Seller
Seller
Seller
Seller
Export Packing
Seller
Seller
Seller
Seller
Seller
Seller
Loading Charges
Seller
Seller
Seller
Seller
Seller
Seller
Inland Freight
Seller
Seller
Seller
Seller
Seller
Seller
Terminal Charges
Seller
Seller
Seller
Seller
Seller
Seller
Forwarder's Fees
Seller
Seller
Seller
Seller
Seller
Seller
Loading On Vessel
Seller
Seller
Seller
Seller
Seller
Seller
Ocean/Air Freight
Seller
Seller
Seller
Seller
Seller
Seller
Charges On Arrival At Destination
Seller
Buyer
Buyer
Seller
Seller
Seller
Duty, Taxes & Customs Clearance
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Delivery To Destination
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.