EXW — Ex Works
The seller makes the goods available at their premises. The buyer bears all costs and risks from pickup.
Seller responsibility
Makes goods available at premises only
Buyer responsibility
All costs and risks from pickup
Common use
Local transactions or experienced buyer
FCA — Free Carrier
The seller delivers the goods to the carrier nominated by the buyer at the agreed place.
Seller responsibility
Delivery to carrier at agreed place
Buyer responsibility
Main carriage and insurance
Common use
All transport modes, most versatile
CPT — Carriage Paid To
The seller pays transport to the destination, but risk transfers upon delivery to the carrier.
Seller responsibility
Carriage paid to destination
Buyer responsibility
Risk from delivery to first carrier
Common use
Multimodal freight, containers
CIP — Carriage and Insurance Paid To
Like CPT, but the seller also arranges transport insurance covering loss or damage risk.
Seller responsibility
Carriage and insurance paid to destination
Buyer responsibility
Risk from delivery to first carrier
Common use
High-value goods, multimodal freight
DAP — Delivered at Place
The seller delivers the goods ready for unloading at the agreed destination.
Seller responsibility
Delivery at destination, not unloaded
Buyer responsibility
Unloading and import customs clearance
Common use
Door-to-door delivery without customs
DPU — Delivered at Place Unloaded
The seller delivers the goods unloaded at the agreed destination. The only Incoterm requiring seller unloading.
Seller responsibility
Delivery and unloading at destination
Buyer responsibility
Import customs and post-delivery transport
Common use
Terminal or destination warehouse
DDP — Delivered Duty Paid
The seller bears all costs and risks, including import customs clearance and duties.
Seller responsibility
All costs, insurance, customs and duties
Buyer responsibility
Receiving the goods only
Common use
International e-commerce, non-specialist buyer
FOB — Free On Board
The seller loads goods on board the vessel. Risk transfers once goods are on board.
Seller responsibility
Loading on board at port of shipment
Buyer responsibility
Sea freight, insurance, unloading
Common use
Sea freight, bulk and raw materials
CIF — Cost, Insurance and Freight
The seller pays freight and insurance to the destination port. Risk transfers upon loading on board.
Seller responsibility
Sea freight and insurance to destination port
Buyer responsibility
Unloading, customs clearance and inland transport
Common use
Sea freight, general cargo