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Incoterms | CFS
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Incoterms

Home / Resources / Incoterms

Incoterms (International Commercial Terms)

Incoterms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes.

For Any Mode of Transport

EXW — Ex Works

NAMED PLACE OF DELIVERY — The seller has the  goods available for buyer pick up at the seller’s premises or at an agreed upon named place. The seller has minimal obligations and is not required to load but may choose to provide that service if agreed to in contract. Buyer assumes responsibility starting from the seller’s door and ending at the final destination. Buyer is responsible for items like export licenses; customs, import, and duties formalities; pre-carriage, main carriage, discharge, and onward carriage; as well as loading and inspection costs.

FCA — Free Carrier

NAMED PLACE OF DELIVERY — The seller delivers the goods to the carrier authorized by the buyer (shipping line, airline, trucking firm, or rail/freight forwarder). The goods are delivered ‘export ready’ with the seller assuming responsibility for items such as export packaging and marking, loading, export licensing, customs formalities, pre-carriage to terminal, delivery to named place of delivery, and proof of delivery.

CPT — Carriage Paid To

NAMED PLACE OF DESTINATION — The seller delivers ‘export ready’ goods to the carrier or another named person at an agreed on named destination. The seller assumes transportation costs associated with delivery to the named place of destination and is responsible for clearing goods through export. The seller’s risk ends with delivery to the named destination and insurance is not required from the seller. The buyer assumes all risks at the first transfer of goods from the seller to the carrier including import formalities, duties, and per-shipment inspection charges.

CIP — Carriage and Insurance Paid To

NAMED PLACE OF SHIPMENT — The seller delivers the goods to the carrier or named person at an agreed location and is responsible for transportation costs until the freight reaches the named place of shipment. The seller is required to clear the freight through export and obtain minimum insurance coverage, while the buyer assumes all risk at the port of shipment and is responsible for import, duties, and the cost of per-shipment inspection.

DAT — Delivered at Terminal

NAMED TERMINAL AT PORT OR PLACE OF DESTINATION — The seller is responsible for clearing the freight for export and assumes the risk and cost of delivering the goods and unloading them at the terminal at the named port or place of destination. The buyer’s responsibility begins once the goods are unloaded at the terminal and continues through import clearance at the named country of destination and includes all costs and risk.

DAP — Delivered at Place

NAMED PLACE OF DESTINATION — The seller assumes the responsibility and cost to clear the goods for export and to deliver the freight to the named place of destination. The seller doe snot unload the goods. The buyer assumes the cost and risk of unloading the goods from the seller’s transport and import clearance into the named country of destination through final delivery.

DDP — Delivered Duty Paid

NAMED PLACE OF DESTINATION — The seller/shipper is responsible for costs related to transporting the goods and is responsible in full for delivering the goods to the named destination and transferred them to the buyer. This includes clear the goods through export making the goods ready for unloading and cleared for import.

FOR SEA AND INLAND WATERWAY TRANSPORT

FAS — Free Alongside Ship

NAMED PORT OF SHIPMENT — The seller assumes responsibility to clear the goods for export and to deliver the goods to a named port of shipment. The seller must place the goods alongside the designated ship and within reach of the vessel’s lifting tackle. From that point on, the buyer assumes all responsibility, cost and risk for the goods.

FOB — Free on Board

NAMED POINT OF SHIPMENT —  The seller assumes responsibility and cost to clear the goods for export, deliver them to the named port of departure, and load them on board the vessel nominated by the buyer. The buyer assumes responsibility for insurance and transportation for the goods from this moment forward.

CFR — Cost and Freight

NAMED PORT OF DESTINATION —  The seller arranges for the carriage of goods by sea to a port of destination. The seller must get the goods to the departing port, load the goods onboard the vessel and pay for transport to the destination port.  The buyer assume all risk once the goods are onboard the ship and assumes responsibility for transportation from the port of destination and for import costs and duties.

CIF — Cost, Insurance, and Freight.

NAMED PORT OF DESTINATION — The seller clears the goods for export, arranges for the carriage of goods by sea to a port of destination, insures the goods for the voyage, and provides the buyer with the documents needed to obtain the goods from the carrier. The buyer assumes responsibility, cost and risk once the goods reach the port of destination, including unloading and clearing the goods for import.

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