Rules for any mode or modes of transport
Rules for sea and inlandwaterway transport
EXW
FCA
CPT
CIP
DAT
DAP
DDP
FAS
FOB
CFR
CIF
Services
Who Pays
Export Packing
S
S
S
S
S
S
S
S
S
S
S
Marking & Labeling
S
S
S
S
S
S
S
S
S
S
S
Block and Brace
1
1
1
1
1
1
1
1
1
1
1
Export Clearance
B
S
S
S
S
S
S
S
S
S
S
Freight Forwarder Documentation Fees
B
B
S
S
S
S
S
B
B
S
S
Inland Freight to Main Carrier
B
2
S
S
S
S
S
S
S
S
S
Origin Terminal Charges
B
B
S
S
S
S
S
B
S
S
S
Vessel Loading Charges
B
B
S
S
S
S
S
B
S
S
S
Ocean Freight / Air Freight
B
B
S
S
S
S
S
B
B
S
S
Nominate Export Forwarder
B
B
S
S
S
S
S
B
B
S
S
Marine Insurance
3
3
3
S
3
3
3
3
3
3
S
Unload Main Carrier Charges
B
B
4
4
S
S
S
B
B
4
4
Destination Terminal Charges
B
B
4
4
4
S
S
B
B
4
4
Nominate On-Carrier
B
B
5
5
5
5
S
B
B
B
B
Security Information Requirements
B
B
B
B
B
B
B
B
B
B
B
Customs Broker Clearance Fees
B
B
B
B
B
B
S
B
B
B
B
Duty, Customs Fees, Taxes
B
B
B
B
B
B
S
B
B
B
B
Delivery to Buyer Destination
B
B
5
5
5
5
S
B
B
B
B
Delivering Carrier Unloading
B
B
B
B
B
B
B
B
B
B
B

1 – Incoterms® 2010 do not deal with the parties’ obligations for stowage within a container and therefore, where relevant, the parties should deal with this in the sales contract.

2 – FCA Seller’s Facility – Buyer pays inland freight; other FCA qualifiers. Seller arranges and loads pre-carriage carrier and pays inland freight to the “F” delivery place

3 – Incoterms® 2010 does not obligate the buyer or seller to insure the goods; therefore this issue must be addressed elsewhere in the sales contract.

4 – Charges paid by Buyer or Seller depending on contract of carriage.

5 – Charges paid by Seller if through Bill of Lading or door-to-door rate to Buyer’s destination

S – Charges paid by Seller

B – Charges Paid by Buyer

Inco Terms Definitions:

Ex Works (EXW) – An Incoterms® rule under which the price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination. This Incoterms® rule is regarded as the most open-ended. There is generally nothing specific regarding delivery and there is a mutually convenient pickup time for exporter and importer agreed upon. Used for any mode of transport.

Free Carrier At (FCA) – An Incoterms® rule under which seller delivers goods, cleared for export, to the buyer-designated carrier at a named location. Used for any mode of transport. Seller must load goods onto the buyer’s carrier. The key document signifying transfer of responsibility is receipt by carrier to exporter.

Carriage Paid To (CPT) – An Incoterms® rule used for any mode of transportation. Buyer assumes title and risk of loss when goods are delivered to the carrier. Seller pays shipping to destination. CPT delivery takes place when the exporter hands over goods to the carrier. The exporter is given bill of lading or equivalent document (air waybill, sea waybill, multi-modal bill of lading).

Carriage Insurance Paid (CIP) – An Incoterms® rule under which seller delivers goods to seller-designated carrier, pays cost of carriage to named destination and must obtain insurance to cover buyer’s risk of loss in transit. Buyer bears risk of loss and any additional costs after seller’s delivery to carrier, protected by seller’s insurance. Used for any mode of transportation; same as CPT, but seller pays for insurance and names buyer as beneficiary.

Delivered at Terminal (DAT) – An Incoterms® rule under which seller delivers goods to a named terminal in the destination country. Buyer is responsible for import clearance and any further in-country carriage. This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010.

Delivered at Place (DAP) – An Incoterms® rule under which seller delivers goods to the buyer’s facility or another named location (other than a terminal) in the destination country. Buyer is responsible for import clearance and any further in-country carriage. This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010 rules.

Delivered Duty Paid (DDP) – An Incoterms® rule under which seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination and for clearing customs in the country of import. Seller provides literally door-to-door delivery, including customs clearance in the port of export and the port of destination. Thus, seller bears the entire risk of loss until goods are delivered to the buyer’s premises. Full term is “DDP named place of destination.” Delivery takes place when exporter places goods at disposal of importer in city of delivery. There is no corresponding transportation document, although bill of lading is usually used. Used for any mode of transportation. Seller bears all risk and customs responsibilities until the goods are delivered to a specified location and clear import customs. Buyer assumes risk and title when the goods are delivered to the buyer’s specified location.

Free Alongside Ship (FAS) – An Incoterms® rule used only for maritime trade (transport by vessel) Under this arrangement, the supplier agrees to deliver the goods in proper condition alongside the vessel. The buyer assumes all subsequent risks and expenses after delivery to the pier. This term can only be used for waterway transportation.

Free On Board (FOB) – An Incoterms® rule used only for maritime trade (transport by vessel) under which responsibility for the shipment transfers from exporter to importer when shipment is loaded aboard the vessel. Seller must load the goods onto the ship. Centuries of maritime tradition says that the FOB point is the Ship’s Rail, also referred to as “Freight on Board.” This is the older maritime term of trade. If the freight falls while loading, however, it is the exporter’s responsibility if it lands on quay, but it is the importer’s responsibility if it lands on ship. The documentation of delivery is the ocean bill of lading or sea waybill. This term can only be used for waterway transportation.

Cost & Freight (CFR) – An Incoterms® rule under which goods are considered to be “delivered” (and buyer assumes risk of loss) when they pass the ship’s rail in the port of shipment. The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port. This term can only be used for waterway transportation.

Cost, Insurance & Freight (CIF) – This Incoterms® rule is similar to Cost & Freight (CFR) where goods are considered to be “delivered” (and buyer assumes risk of loss) when they pass the ship’s rail in the port of shipment. The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port. Under CIF the seller must also obtain marine insurance against buyer’s risk of loss or damage in transit. This term can only be used for waterway transportation.