INCOTERMS

Group 1: Incoterms for Any Mode of Transport

 

    1.    EXW (Ex Works)

    •    Seller’s Responsibility: The seller makes the goods available at their premises (factory, warehouse, etc.).

    •    Buyer’s Responsibility: The buyer is responsible for all costs and risks from the point of pickup, including transport, export duties, and delivery to the final destination.

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    2.    FCA (Free Carrier)

    •    Seller’s Responsibility: The seller delivers the goods to a carrier or another specified party at an agreed location.

    •    Buyer’s Responsibility: The buyer takes responsibility once the goods are delivered to the carrier. The buyer handles transportation and all costs after this point.

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    3.    CPT (Carriage Paid To)

    •    Seller’s Responsibility: The seller pays for the carriage of the goods to the named destination.

    •    Buyer’s Responsibility: The buyer assumes the risk once the goods are handed over to the carrier but must cover any additional import costs.

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    4.    CIP (Carriage and Insurance Paid To)

    •    Seller’s Responsibility: Similar to CPT, but the seller also provides insurance for the goods during transit.

    •    Buyer’s Responsibility: The buyer is responsible for import costs, duties, and assumes the risk after the goods reach the carrier, but they benefit from insurance paid by the seller.

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    5.    DAP (Delivered at Place)

    •    Seller’s Responsibility: The seller is responsible for delivering the goods to the named place (usually the buyer’s location), excluding import clearance.

    •    Buyer’s Responsibility: The buyer is responsible for import duties and unloading.

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    6.    DPU (Delivered at Place Unloaded)

    •    Seller’s Responsibility: The seller delivers the goods to the named destination and is responsible for unloading the goods.

    •    Buyer’s Responsibility: The buyer handles import duties and further transportation after the goods are unloaded.

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    7.    DDP (Delivered Duty Paid)

    •    Seller’s Responsibility: The seller is responsible for all costs, including transport, insurance, and import duties, up to the buyer’s location.

    •    Buyer’s Responsibility: The buyer is only responsible for unloading the goods. This term is the most favorable for buyers.

 

Group 2: Incoterms for Sea and Inland Waterway Transport

 

    8.    FAS (Free Alongside Ship)

    •    Seller’s Responsibility: The seller delivers the goods alongside the ship at the port of shipment.

    •    Buyer’s Responsibility: The buyer is responsible for loading the goods onto the ship, transportation, and costs after the goods are alongside the vessel.

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    9.    FOB (Free on Board)

    •    Seller’s Responsibility: The seller is responsible for delivering the goods on board the ship at the port of shipment.

    •    Buyer’s Responsibility: The buyer takes on the cost and risk once the goods are loaded onto the ship, and is responsible for the freight and any further costs.

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    10.    CFR (Cost and Freight)

 

    •    Seller’s Responsibility: The seller covers the cost of freight to the destination port but does not cover insurance.

    •    Buyer’s Responsibility: The buyer takes on the risk and costs for insurance and any further transport once the goods are loaded onto the ship.

 

    11.    CIF (Cost, Insurance, and Freight)

 

    •    Seller’s Responsibility: The seller pays for the freight and insurance to the destination port.

    •    Buyer’s Responsibility: The buyer takes responsibility for unloading and import duties once the goods arrive at the port.

 

Summary

 

    •    EXW: Buyer takes all responsibility from the seller’s premises.

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    •    FCA: Seller delivers to a carrier, buyer assumes responsibility from there.

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    •    CPT: Seller covers transport to destination, buyer assumes risk with the carrier.

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    •    CIP: Same as CPT but seller provides insurance.

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    •    DAP: Seller delivers to the buyer’s location, buyer handles import clearance.

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    •    DPU: Seller delivers and unloads, buyer handles import.

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    •    DDP: Seller covers everything up to the buyer’s location, including duties.

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    •    FAS: Seller delivers alongside the ship, buyer handles loading and costs.

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    •    FOB: Seller loads goods on the ship, buyer handles the rest.

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    •    CFR: Seller covers cost to the destination port, buyer handles insurance and beyond.

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    •    CIF: Same as CFR but seller provides insurance.