Seller makes the goods available at their premises
(factory/warehouse). Buyer bears all costs and risks from there, including export clearance, transport, and import.
FCA
(Free Carrier)
Seller delivers goods to the carrier at a named place. Seller clears goods for export. Buyer takes over from that point (main transport, insurance, import).
FAS
(Free Alongside Ship)
Seller delivers goods alongside the vessel at the named port of shipment. Buyer covers loading, ocean freight,
insurance, and import duties.
FOB
(Free On Board)
Seller delivers goods onto the vessel at the named port
of shipment. Risk passes once goods are on board.
Buyer covers sea freight, insurance, and import costs.
CFR
(Cost and Freight)
Seller pays for freight to the destination port. Risk transfers once goods are on board the ship. Buyer covers
insurance, import clearance, and onward transport.
CIF
(Cost, Insurance and Freight)
Same as CFR, but seller also provides minimum
insurance. Risk still transfers once goods are
loaded onto the vessel.
CPT
(Carriage Paid To)
Seller pays for transport to a named destination.
Risk transfers once goods are handed to the first carrier. Buyer handles insurance and import costs.
CIP
(Carriage and Insurance Paid To)
Same as CPT, but seller must provide insurance
(usually higher coverage). Risk transfers once goods
are handed to the first carrier.
DAP
(Delivered At Place)
Seller delivers goods to a named place of destination (ready for unloading). Seller covers all costs up to
that point. Buyer handles import duties, taxes,
and customs clearance.
DPU
(Delivered at Place Unloaded)
Seller delivers goods unloaded at the destination
place. Buyer handles import duties and taxes.
Note: This is the only Incoterm where the seller is
responsible for unloading.
DDP
(Delivered Duty Paid)
Seller delivers goods to buyer’s location, covering all costs: export, freight, insurance, import clearance, and duties. Buyer only receives the goods.
