Inco Terms 2020

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International Commercial Terms

Understanding the responsibilities of buyers and sellers in international trade

Terms for Any Transport Mode

EXW - EX WORKS

The Seller's only responsibility is to make the goods available at the Seller's premises. The Buyer bears full costs and risks of moving the goods from there to destination.

FCA - FREE CARRIER

The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller's premises.

CPT - CARRIAGE PAID TO

The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage.

CIP - CARRIAGE AND INSURANCE PAID TO

The Seller pays for moving the goods to destination and purchases cargo insurance. The Buyer bears risks of loss or damage from first carrier.

DAT - DELIVERED AT TERMINAL

The Seller delivers when goods, unloaded from arriving transport, are placed at Buyer's disposal at named terminal.

DAP - DELIVERED AT PLACE

The Seller delivers when goods are placed at Buyer's disposal on arriving means of transport ready for unloading at named place.

DDP - DELIVERED DUTY PAID

The Seller delivers goods cleared for import to Buyer at destination, bearing all costs and risks including customs duties.

Maritime-Only Terms

FAS - FREE ALONGSIDE SHIP

The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks.

FOB - FREE ON BOARD

The Seller delivers the goods on board the ship and clears for export. From that point, Buyer bears all costs and risks.

CFR - COST AND FREIGHT

The Seller clears goods for export and pays costs to destination port. Buyer bears risks of loss or damage.

CIF - COST INSURANCE AND FREIGHT

The Seller clears goods for export, pays costs to destination port, and purchases cargo insurance. Buyer bears risks.