Reference guide

Incoterms 2020 Explained

The 11 International Commercial Terms that govern global trade. Each one defines who pays for what, where risk transfers, and which party handles customs clearance.

EXWany mode

Ex Works

Seller makes the goods available at their premises; the buyer handles everything else.

FCAany mode

Free Carrier

Seller delivers the cleared goods to a carrier chosen by the buyer at an agreed place.

CPTany mode

Carriage Paid To

Seller pays for carriage to the named destination, but risk transfers at the first carrier.

CIPany mode

Carriage and Insurance Paid To

Like CPT, but the seller also buys all-risks insurance covering the main carriage.

DAPany mode

Delivered at Place

Seller delivers the goods ready for unloading at the named destination; the buyer clears imports.

DPUany mode

Delivered at Place Unloaded

Seller delivers and unloads the goods at the named destination; buyer clears imports.

DDPany mode

Delivered Duty Paid

Seller delivers the goods to the buyer's door with duties and taxes paid.

FASsea

Free Alongside Ship

Seller places the goods alongside the vessel at the named port of loading; buyer handles loading.

FOBsea

Free On Board

Seller loads the goods on the vessel at the named port; risk transfers on board.

CFRsea

Cost and Freight

Seller pays freight to the named destination port; risk transfers on board at origin.

CIFsea

Cost, Insurance and Freight

Seller pays freight and minimum insurance to the named destination port; risk transfers at origin.

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