INCO Terms

Inco terms make international trade easier and help traders in different countries to understand one another. These standard trade definitions are most commonly used in international contracts and are protected by ICC copyright.

When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit. The following chart summarizes the responsibilities of both the buyer and seller for each of the current 13 INCOTERMS. In addition, a definition for each term is included at the bottom of the page

EXW	FCA	FAS	FOB	CFR	CIF	CPT	CIP	DAT	DAP	DDP

Services	Ex Works	Free Carrier	Free Alongside Ship	Free Onboard Vessel	Cost & Freight	Cost Insurance & Freight	Carriage Paid To	Carriage Insurance Paid To	Deliver Red At Terminal	Delivered At Place	Delivered Duty Paid
Warehouse Storage	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Warehouse Labour	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Export Packing	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Loading Charges	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Inland Freight	Buyer	Buyer/ Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Terminal Charges	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Forwarder’s Fees	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Loading On Vessel	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Ocean / Air Freight	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Charges On Arrival At Destination	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller
Duty, Taxes & Customs Clearance	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller
Delivery To Destination	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller

Services

Warehouse Storage

Ex- Works (EXW) :

Seller

Free Carrier (FCA) :

Seller

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Warehouse Labour

Ex- Works (EXW) :

Seller

Free Carrier (FCA) :

Seller

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Export Packing

Ex- Works (EXW) :

Seller

Free Carrier (FCA) :

Seller

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Loading Charges

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Inland Freight

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer/ Seller*

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Terminal Charges

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Seller

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Forwarder’s Fees

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Buyer

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Loading On Vessel

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Seller

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Ocean / Air Freight

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Buyer

Cost & Freight (CFR) :

Seller

Cost Insurance & Freight (CIF) :

Seller

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Charges On Arrival At Destination

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Buyer

Cost & Freight (CFR) :

Buyer

Cost Insurance & Freight (CIF) :

Buyer

Carriage Paid To (CPT) :

Seller

Carriage Insurance Paid To (CIP) :

Seller

Delivered At Terminal (DAT) :

Seller

Delivered At Place (DAP) :

Seller

Delivered Duty Paid (DDP) :

Seller

Duty, Taxes & Customs Clearance

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Buyer

Cost & Freight (CFR) :

Buyer

Cost Insurance & Freight (CIF) :

Buyer

Carriage Paid To (CPT) :

Buyer

Carriage Insurance Paid To (CIP) :

Buyer

Delivered At Terminal (DAT) :

Buyer

Delivered At Place (DAP) :

Buyer

Delivered Duty Paid (DDP) :

Seller

Delivery To Destination

Ex- Works (EXW) :

Buyer

Free Carrier (FCA) :

Buyer

Free Alongside Ship (FAS) :

Buyer

Free Onboard Vessel (FOB) :

Buyer

Cost & Freight (CFR) :

Buyer

Cost Insurance & Freight (CIF) :

Buyer

Carriage Paid To (CPT) :

Buyer

Carriage Insurance Paid To (CIP) :

Buyer

Delivered At Terminal (DAT) :

Buyer

Delivered At Place (DAP) :

Buyer

Delivered Duty Paid (DDP) :

Seller

Origin Terms

EXW – Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation.

International Carriage NOT Paid by Seller

FCA – Free Carrier, unloaded at the seller’s dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport.

FAS – Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized.

FOB – Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship’s rail.

International Carriage Paid by the Seller

CFR – Cost and Freight, Named ocean port of destination. This term is used for ocean shipments that are not containerized.

CIF – Cost, Insurance and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.

CPT – Carriage Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

CIP – Carriage and Insurance Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

DAT – Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DAP – Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

Origin Terms

EXW –

Ex-Works, named place where shipment is available to the buyer, not loaded. The seller will not contract for any transportation.

International Carriage NOT Paid by Seller

FCA –

Free Carrier, unloaded at the seller’s dock OR a named place where shipment is available to the international carrier or agent, not loaded. This term can be used for any mode of transport.

FAS –

Free Alongside Ship, named ocean port of shipment. Ocean shipments that are NOT containerized.

FOB –

Free On Board vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship’s rail.

International Carriage Paid by the Seller

CFR –

Cost and Freight, Named ocean port of destination. This term is used for ocean shipments that are not containerized.

CIF –

Cost, Insurance and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.

CPT –

Carriage Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

CIP –

Carriage and Insurance Paid To, named place or port of destination. This term is used for air or ocean containerized and roll-on roll-off shipments.

DAT –

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DAP –

Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

Our Services

Our Services

INCO Terms

INCO Terms

Services

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :

Delivered At Place (DAP) :

Delivered Duty Paid (DDP) :

Ex- Works (EXW) :

Free Carrier (FCA) :

Free Alongside Ship (FAS) :

Free Onboard Vessel (FOB) :

Cost & Freight (CFR) :

Cost Insurance & Freight (CIF) :

Carriage Paid To (CPT) :

Carriage Insurance Paid To (CIP) :

Delivered At Terminal (DAT) :