Tools · Incoterms
Incoterms, Decoded.
International Commercial Terms like EXW, FCA, CPT, CIP, DAT, DAP, DDP, FOB, and CIF mark the exact point where responsibility for cost, risk, and logistics shifts from seller to buyer.
Ex Works
The seller's responsibility ends when the goods are made available for pickup at their premises or another named place — the buyer handles transport, export clearance, and risk from that point.
Free Carrier
The seller delivers the goods, cleared for export, to a carrier or place nominated by the buyer. Risk transfers once the goods are handed over — works for any mode of transport.
Carriage Paid To
The seller pays for carriage to the named destination, but risk transfers to the buyer as soon as the goods are handed to the first carrier, not on arrival.
Carriage and Insurance Paid To
Like CPT, but the seller must also arrange insurance covering the goods for the buyer through to the named destination, at a higher minimum coverage level.
Delivered at Terminal
The seller delivers when the goods are unloaded at the named terminal — a port, airport, or carrier facility — bearing all risk and cost up to that point.
Delivered at Place
The seller delivers when the goods are made available to the buyer at the named destination, ready for unloading. The buyer handles unloading and import clearance.
Delivered Duty Paid
The seller bears all costs and risks — including import duties, taxes, and customs clearance — until the goods reach the named destination. Maximum obligation for the seller.
Free On Board
The seller bears responsibility for the goods until they are loaded onto the vessel at the specified port. After that point, the buyer assumes responsibility for transport, insurance, and risk. Used for sea and inland waterway transport only.
Cost, Insurance, and Freight
The seller covers the cost of freight and insurance to transport the goods to the named destination port, though risk transfers to the buyer once goods are loaded at origin. Sea freight only.
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