29/12/2022
List of all incoterms 2020
There are currently 11 incoterms in use. Below you’ll find the meaning as well as a short overview of the responsibilities involved for buyer and seller for each of them. For more details, click on the link of each incoterm to lead you to a page with more detailed information.
1. CIF (Cost, Insurance and Freight)
CIF means that the seller delivers when the suitably packaged goods, cleared for export, are safely stowed on board the ship at the selected port of shipment. The seller must prepay the freight contract and insurance.
2. CIP (Carriage and Insurance Paid to)
CIP means that the seller delivers the goods to a carrier or another approved person (selected by the seller) at an agreed location.
The seller is responsible for paying the freight and insurance charges, which are required to transport the goods to the selected destination.
3. CFR (Cost and Freight)
CFR means that the seller delivers when the suitably packaged goods, cleared for export, are safely loaded on the ship at the agreed upon shipping port. The seller is responsible for prepaying the freight contract.
4. CPT (Carriage paid to)
CPT stands for when the seller delivers the goods to a carrier, or a person nominated by the seller, at a destination jointly agreed upon by the seller and buyer. The seller is responsible for paying the freight charges to transport the goods to the named location. Responsibility for the goods being transported transfers from the seller to the buyer the moment the goods are delivered to the carrier.
5. DAT (Delivered at Terminal)
DAT is a term indicating that the seller delivers when the goods are unloaded at the destination terminal. While there is no requirement for insurance, the delivery is not complete until the goods are unloaded at the agreed destination. Therefore, the seller should be wary of the risks that not securing insurance could pose.
6. DAP (Delivered at Place)
DAP means that the seller delivers the goods when they arrive at the pre-agreed destination, ready for unloading.
It is the buyer’s responsibility to effect any customs clearance and pay any import duties or taxes. The seller should be wary of the risks of not securing insurance.
7. DDP (Delivery Duty Paid)
DDP means that the seller delivers the goods to the buyer, cleared for import and ready for unloading, at the agreed location or destination. The seller maintains responsibility for all the costs and risks involved in delivering the goods to the location. DDP holds the maximum obligation for the seller.
8. EXW (Ex Works)
EXW means that the seller has delivered when they place or deliver suitably packaged goods at the disposal of the buyer at an agreed-upon place (i.e. the works, factory, warehouse, etc.). The goods are not cleared for export. From collection, the buyer is responsible for transport, all risks, costs and clearances.
9. FAS (Free Alongside Ship)
FAS stands for when the seller delivers the goods, packaged suitably and cleared for export, by placing them beside the vessel at the agreed upon port of shipment. At this point, responsibility for the goods passes from the seller to the buyer. The buyer maintains responsibility for loading the goods and any further costs.
10. FCA (Free Carrier)
FCA means that the seller fulfills their obligation to deliver when the goods are handed, suitably packaged and cleared for export, to the carrier, an approved person selected by the buyer, or the buyer at a place named by the buyer. Responsibility for the goods passes from seller to buyer at this named place.
11. FOB (Free on Board)
FOB means that the seller delivers the goods, suitably packaged and cleared for export, once they are safely loaded on the ship at the agreed upon shipping port. At this point, responsibility for the goods transfers to the buyer.
