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Forwarder's reference guide

Incoterms 2020 — delivery terms

Incoterms® 2020 are international rules from the International Chamber of Commerce (ICC) that allocate delivery and payment duties between seller and buyer and, crucially, the moment the risk in the goods transfers. Below are all 11 terms, grouped into the four categories E, F, C and D.

Any mode of transport Sea / inland waterway only Paid / responsible: seller Paid / responsible: buyer

Category E — Departure

Minimum seller obligations: the goods are handed over at the seller's own premises.

EXW
Any transport
Ex Works (… named place)
Ex Works (… named place)
SellerMakes the goods available, ready for collection, at its own premises.
BuyerExport and import customs clearance, loading and the entire carriage.
Transfer of riskAt the moment the goods are handed over at the seller's premises.

The delivery term with the minimum seller obligations.

Category F — Main carriage unpaid by seller

The seller hands the goods to the carrier, but the buyer pays for the main carriage.

FCA
Any transport
Free Carrier (… named place)
Free Carrier (… named place)
SellerExport customs clearance and handover of the goods to the carrier nominated by the buyer.
BuyerMain carriage and import customs clearance.
Transfer of riskAt the moment of handover to the carrier at the agreed place.
FAS
Sea only
Free Alongside Ship (… named port of shipment)
Free Alongside Ship (… named port of shipment)
SellerExport clearance and placing the goods alongside the vessel at the port of shipment.
BuyerLoading onto the vessel, ocean freight and import customs clearance.
Transfer of riskAt the port, at the moment the goods are placed alongside the vessel.
FOB
Sea only
Free On Board (… named port of shipment)
Free On Board (… named port of shipment)
SellerExport clearance and loading the goods on board the vessel at the port of shipment.
BuyerOcean freight to the port of discharge and import customs clearance.
Transfer of riskAt the port, from the moment the goods are fully loaded on board.

Category C — Main carriage paid by seller

The seller pays for carriage to the destination, but the risk transfers earlier — at shipment.

CFR
Sea only
Cost and Freight (… named port of destination)
Cost and Freight (… named port of destination)
SellerExport clearance, loading on board and payment of freight to the port of discharge.
BuyerDischarge, receipt at the port and import customs clearance.
Transfer of riskAt the port of shipment, from the moment the goods are fully loaded on board.
CIF
Sea only
Cost, Insurance and Freight (… named port of destination)
Cost, Insurance and Freight (… named port of destination)
SellerExport clearance, cargo insurance, loading on board and freight to the port of discharge.
BuyerDischarge, receipt at the port and import customs clearance.
Transfer of riskAt the port of shipment, from the moment the goods are fully loaded on board.
CPT
Any transport
Carriage Paid To (… named place of destination)
Carriage Paid To (… named place of destination)
SellerExport clearance and payment of carriage to the agreed place of destination.
BuyerReceipt of the goods and import customs clearance.
Transfer of riskAt the moment of handover to the first carrier.
CIP
Any transport
Carriage and Insurance Paid To (… named place of destination)
Carriage and Insurance Paid To (… named place of destination)
SellerExport clearance, cargo insurance and payment of carriage to the place of destination.
BuyerReceipt of the goods and import customs clearance.
Transfer of riskAt the moment of handover to the first carrier.

Category D — Arrival

Maximum seller responsibility: the risk transfers only at the place of destination.

DAP
Any transport
Delivered At Place (… named place of destination)
Delivered At Place (… named place of destination)
SellerExport clearance and delivery of the goods to the agreed place of destination (not unloaded).
BuyerUnloading, receipt and import customs clearance.
Transfer of riskAt the place of destination, with the goods ready for unloading.
DPU
Any transport
Delivered at Place Unloaded (… named place of destination)
Delivered at Place Unloaded (… named place of destination)
SellerExport clearance, delivery to the place of destination and unloading of the goods.
BuyerReceipt of the goods and import customs clearance.
Transfer of riskAt the place of destination, after unloading is complete.

The only term under which the seller is obliged to unload the goods.

DDP
Any transport
Delivered Duty Paid (… named place of destination)
Delivered Duty Paid (… named place of destination)
SellerExport clearance, delivery to the place of destination and import clearance with duties paid.
BuyerReceipt of the goods only.
Transfer of riskAt the place of destination, with the goods ready for unloading.

The delivery term with the maximum seller obligations.

For reference only. "Incoterms" is a registered trademark of the International Chamber of Commerce (ICC). This table is provided for informational purposes. The exact terms of a specific delivery are set out in the contract — we'll help you choose the right term and quote the transport.

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