Reference Tool
INCO Terms (Incoterms® 2020)
Standard trade terms published by the ICC that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts.
Rules for Any Mode of Transport
| Code | Term | Description |
|---|---|---|
| EXW | Ex Works | Seller makes goods available at their premises; the buyer bears all costs and risks from that point onward. |
| FCA | Free Carrier | Seller delivers goods, cleared for export, to a carrier nominated by the buyer at a named place. |
| CPT | Carriage Paid To | Seller pays for carriage to the named destination; risk transfers once goods are handed to the first carrier. |
| CIP | Carriage and Insurance Paid To | Like CPT, but the seller also arranges insurance covering the buyer’s risk during transit. |
| DAP | Delivered at Place | Seller delivers when goods are ready for unloading at the named destination. |
| DPU | Delivered at Place Unloaded | Seller delivers and unloads the goods at the named destination. |
| DDP | Delivered Duty Paid | Seller bears all costs and risks, including duties, taxes and clearance, to deliver goods to the buyer’s named destination. |
Rules for Sea & Inland Waterway Transport
| Code | Term | Description |
|---|---|---|
| FAS | Free Alongside Ship | Seller delivers when goods are placed alongside the vessel at the named port of shipment. |
| FOB | Free on Board | Seller delivers when goods are loaded onto the vessel nominated by the buyer. |
| CFR | Cost and Freight | Seller pays the cost and freight to bring goods to the named port; risk transfers once goods are loaded onboard. |
| CIF | Cost, Insurance and Freight | Like CFR, but the seller also arranges insurance covering the buyer’s risk during transit. |