Incoterms® 2020 Quick Reference Guide
EX WORKS – EXW
The seller is only responsible for having the shipment available at the seller’s location. Once picked up, the buyer assumes full risk for the shipment to the final destination.
FREE CARRIER- FCA
The seller is responsible for delivering the shipment to the carrier or the carrier’s designated representative at the seller’s location or another agreed to destination.
CARRIAGE PAID TO- CPT
The seller delivers the shipment to the carrier or the carrier’s designated representative at the seller’s location or another agreed to destination. The seller pays the transportation costs to deliver the shipment to the named destination.
CARRIAGE AND INSURANCE PAID TO- CIP
The seller delivers the shipment to the carrier at an agreed place of delivery and pays for the transport and all associated insurance to the named destination. The risk is transferred to the buyer when delivered.
DELIVERED AT PLACE UNLOADED- DPU
This term replaced DAT (Delivered at Terminal) as buyers and sellers sometimes want the shipment delivered somewhere other than a terminal. This term tasks the seller with unloading the goods at delivery.
DELIVERED AT PLACE- DAP
Seller delivers the goods when placed at the disposal of the buyer on the arriving means of transport, ready for unloading at the agreed destination. The seller assumes all risk involved in bringing the goods to the named location.
DELIVERED DUTY PAID- DDP
The seller delivers the goods cleared for import on the provided transportation and ready for unloading at the named location. The seller is responsible for all costs and risks involved with the final delivery, including customs formalities as well as any export or import duty.
FREE ALONGSIDE SHIP- FAS
Seller is responsible for delivery of the shipment when placed alongside the vessel at the named port of shipment. At this point, the buyer bears all risk of loss or damage.
FREE ON BOARD- FOB
Seller is responsible for delivery of the shipment on board the vessel named by the buyer in the agreed port of shipment. Risk is transferred to the buyer from then onwards.
COST AND FREIGHT- CFR
The seller pays for the cost of freight, duty unpaid, to the named port of delivery. Risk is transferred to the buyer from that point on.
COST, INSURANCE AND FREIGHT- CIF
The seller delivers the shipment on board the vessel. The seller must contract for and cover the cost of freight and insurance (minimum coverage required) to cover the buyer’s risk of loss of or damage to the shipment during carriage.