The 11 international trade terms of the International Chamber of Commerce: who pays for what and where risk passes from seller to buyer.
The seller makes the goods available at its own premises, without loading them or clearing them for export. It is the seller's minimum obligation: in international trade FCA is usually more advisable.
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the agreed place. It is the recommended term for containers when delivery takes place at a terminal rather than on board.
The seller pays carriage to the agreed destination, but risk passes to the buyer when the goods are handed to the first carrier. The seller clears the goods for export.
As CPT, but the seller also arranges and pays for cargo insurance in favour of the buyer. Under Incoterms 2020 the required cover is extensive (ICC clauses A).
Includes insurance paid by the seller.
The seller bears costs and risks until the goods, ready for unloading, are placed at the buyer's disposal at the agreed destination. Import clearance and duties are for the buyer.
New in Incoterms 2020 (replaces the former DAT). The seller delivers the goods unloaded at the agreed place of destination, such as a terminal, warehouse or depot.
The seller's maximum obligation: delivery at destination with import clearance done and duties and taxes paid. Use it only if the seller can handle import formalities in the buyer's country.
The seller places the goods, cleared for export, alongside the vessel at the port of shipment. Sea transport only; for containers FCA is preferable.
The seller delivers once the goods are on board the vessel at the port of shipment; from then on costs and risks are the buyer's. Sea only; for containers and ro-ro FCA is more suitable.
The seller pays freight to the port of destination, but risk passes to the buyer once the goods are loaded on board at origin. Sea only; for containers CPT is more suitable.
As CFR, and the seller also arranges marine insurance in favour of the buyer with minimum cover (110% of the value). Sea only; for containers CIP is more suitable.
Includes insurance paid by the seller.
V = seller · C = buyer · (V) / (C) = where applicable · V/C = generally the seller · C/V = generally the buyer · v / c = no obligation, but the risk is theirs
| EXW | FCA | CPT | CIP | DPU | DAP | DDP | FAS | FOB | CFR | CIF | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Packing and checking | V | V | V | V | V | V | V | V | V | V | V |
| Loading | C | V/C | V | V | V | V | V | – | – | – | – |
| Carriage | C | C | V | V | V | V | V | (V) | (V) | (V) | (V) |
| Export formalities | C | V | V | V | V | V | V | V | V | V | V |
| Loading on board | (C) | (C) | (V) | (V) | (V) | (V) | (V) | C | V | V | V |
| Ocean freight | (C) | (C) | (V) | (V) | (V) | (V) | (V) | C | C | V | V |
| Cargo insurance | c | c | c | V | v | v | v | c | c | c | V |
| Unloading from vessel | (C) | (C) | (V/C) | (V/C) | (V) | (C/V) | (C/V) | C | C | V/C | V/C |
| Import formalities | C | C | C | C | C | C | V | C | C | C | C |
| Carriage to destination | C | C | V/C | V/C | V/(C) | V/(C) | V/(C) | (C) | (C) | (C) | (C) |
| Unloading at destination | C | C | C | C | V/(C) | C/(V) | C/(V) | – | – | – | – |
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