Incoterms

The seven Incoterms below apply to any mode of transport

Incoterm	Full Form	Description
EXW	Ex Works	EXW (Ex Works) places nearly all responsibility for the goods in the hands of the buyer. The seller makes the goods available for collection at their premises or another named place. The buyer loads the goods and ensures export clearance if applicable.
FCA	Free Carrier	FCA gives the seller responsibility to deliver the goods to a carrier or another person nominated by the buyer at the seller’s premises or another named place. The buyer is responsible for collecting the goods from that place. Risk passes to buyer at delivery point.
CPT	Carriage Paid To	The seller delivers the goods to a carrier or another person nominated by the seller at an agreed place. The seller pays the carriage costs to bring goods to the destination but is not responsible for insurance payment.
CIP	Carriage and Insurance Paid To	The seller has the same responsibilities as CPT, but also contracts for insurance cover against the buyer’s risk of loss or damage during carriage. Insurance is minimum cover; additional insurance must be arranged by the buyer if desired.
DAP	Delivered at Place	When using DAP, the seller bears all risks involved in bringing the goods to a named place. The buyer is responsible for unloading the goods from the arriving mode of transport at the named place of destination.
DPU	Delivered at Place Unloaded	DPU is very similar to DAP in that the seller bears all risks in bringing goods to a named place, however, the seller is also responsible for unloading the delivery.
DDP	Delivered Duty Paid	DDP places all responsibilities on the seller. The seller bears all costs and risks involved in bringing the goods to the destination, including export and import clearance, duties, and customs formalities. The seller may charge the buyer more to cover additional customs and logistics costs.

The four Incoterms below apply to sea and inland waterway only

Incoterm	Full Form	Description
FAS	Free Alongside Ship	The seller places the goods alongside a vessel (e.g., on a quay or barge) nominated by the buyer at the named port of shipment. Risk of loss or damage passes when goods are placed alongside the ship. Buyer bears all costs from that point onward.
FOB	Free on Board	The seller places the goods on board a vessel nominated by the buyer at the named port of shipment. Risk of loss or damage passes when goods are on board the vessel. Buyer bears all costs from that point onward.
CFR	Cost and Freight	The seller delivers the goods on board the vessel (or ensures they are already delivered). Risk passes to the buyer when goods are on board, but the seller pays the cost and freight to bring goods to the named port of destination.
CIF	Cost, Insurance & Freight	Similar to CFR, the seller delivers goods on board the vessel and pays cost and freight to destination. Additionally, the seller must arrange insurance against buyer’s risk of loss or damage, but only for minimum cover. Buyer should arrange additional insurance if needed.