Resource Library

Incoterms 2020

International Commercial Terms โ€” showing clearly who bears responsibility at each stage of the shipment journey.

Key:
Seller / Exporter responsible
Buyer / Importer responsible
* Risk and cost transfer at the same point unless otherwise noted
Typical Shipment Journey
๐Ÿญ
Seller's
Premises
๐Ÿš›
Origin
Inland
๐Ÿ›ƒ
Export
Customs
โš“
Port of
Loading
๐Ÿšข
Main
Carriage
๐Ÿณ๏ธ
Port of
Discharge
๐Ÿ›ƒ
Import
Customs
๐Ÿ“
Buyer's
Door
Term Seller's
Premises
Origin
Inland
Export
Customs
Port of
Loading
Main
Carriage
Port of
Discharge
Import
Customs
Buyer's
Door

๐Ÿšข Sea & Inland Waterway Only

FAS, FOB, CFR and CIF apply exclusively to sea freight. For containerised shipments, FCA, CPT and CIP are generally preferred as risk transfers earlier (at the container yard).

โœˆ๏ธ All Modes of Transport

EXW, FCA, CPT, CIP, DAP, DPU and DDP apply to all transport modes including air, road, rail and multimodal shipments.

โš ๏ธ DDP โ€” Duty Paid by Seller

Under DDP the seller bears maximum responsibility, including import duties and taxes at destination. Sellers must be able to handle customs clearance in the buyer's country.

๐Ÿ“ฆ EXW โ€” Minimum Seller Obligation

Under EXW the seller simply makes goods available at their premises. The buyer arranges and pays for everything including export customs โ€” maximum risk for the buyer.