Incoterms Quick Reference
11 international trade terms defining seller and buyer responsibilities
Note: CIF requires minimum cover of Institute Cargo Clause (C). CIP requires minimum cover of Institute Cargo Clause (A).
This table is for guidance purposes only. For complete details, refer to Incoterms® 2020 by the International Chamber of Commerce.
Detailed Descriptions
Any Mode of Transport
EXW
Ex Works
Seller makes goods available at their premises. Buyer arranges all transport, export/import clearance, and insurance.
Packaging, marking, making goods available at premises
All transport, loading, export clearance, freight, insurance, import clearance, duties
FCA
Free Carrier
Seller delivers goods to the carrier or named place. Export cleared. Most flexible multimodal term.
Export clearance, delivery to carrier or named place, loading at seller's premises
Main freight, insurance (optional), import clearance, duties
CPT
Carriage Paid To
Seller pays freight to named destination. Risk transfers when goods are handed to the first carrier.
Export clearance, freight to named destination
Insurance (optional), import clearance, duties, unloading
CIP
Carriage and Insurance Paid To
Seller pays freight and comprehensive insurance (ICC A minimum at 110% contract value) to named destination.
Export clearance, freight to named destination, insurance (ICC A minimum at 110%)
Import clearance, duties, unloading
DAP
Delivered at Place
Seller delivers goods at the named place of destination, ready for unloading. Buyer handles import clearance.
All transport and risk to named destination, export clearance
Unloading, import clearance, duties
DPU
Delivered at Place Unloaded
Seller delivers and unloads goods at the named place of destination. Only term where seller must unload.
All transport, risk, and unloading at named destination, export clearance
Import clearance, duties
DDP
Delivered Duty Paid
Seller handles everything including import duties and clearance. Buyer bears unloading risk and cost unless otherwise agreed.
All transport, export clearance, import clearance, duties, taxes
Unloading (unless included in transport contract)
Sea and Inland Waterway Only
FAS
Free Alongside Ship
Seller delivers goods alongside the vessel at the named port of shipment. Used for bulk/break-bulk cargo.
Export clearance, delivery alongside vessel at port
Loading, main freight, insurance (optional), import clearance, duties
FOB
Free On Board
Seller delivers goods on board the vessel at the named port of shipment. Classic sea freight term.
Export clearance, loading onto vessel at port
Main freight, insurance (optional), import clearance, duties
CFR
Cost and Freight
Seller pays freight to destination port. Risk transfers at loading port, not destination.
Export clearance, freight to destination port
Insurance (optional), import clearance, duties, unloading
CIF
Cost, Insurance, and Freight
Seller pays freight and minimum insurance (ICC C) to destination port. Most common sea import term.
Export clearance, freight to destination port, insurance (ICC C minimum)
Import clearance, duties, unloading
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC)