INCO Terms

INCO TERMS

Understanding International Commercial Terms

Incoterms are a set of rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They are widely used in international commercial transactions.

EXW

Ex Works

The seller makes the goods available at their premises. The buyer bears all costs and risks from there.

FCA

Free Carrier

The seller delivers the goods to a carrier or another person nominated by the buyer at the seller's premises or another named place.

CPT

Carriage Paid To

The seller delivers the goods to the carrier and pays for carriage to the named destination.

CIP

Carriage and Insurance Paid To

The seller delivers the goods to the carrier, pays for carriage and insurance to the named destination.

DAP

Delivered at Place

The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named destination.

DPU

Delivered at Place Unloaded

The seller delivers when the goods are unloaded from the arriving means of transport and placed at the disposal of the buyer at a named destination.

DDP

Delivered Duty Paid

The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import, and ready for unloading at the named destination.

FAS

Free Alongside Ship

The seller delivers when the goods are placed alongside the vessel at the named port of shipment.

FOB

Free on Board

The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment.

CFR

Cost and Freight

The seller delivers the goods on board the vessel and pays the costs and freight necessary to bring the goods to the named port of destination.

CIF

Cost, Insurance and Freight

The seller delivers the goods on board the vessel, pays for freight and insurance to the named port of destination.