Table 14.2.
Incoterms®
| Group | Term | Description |
|---|---|---|
| General transport | ||
| E | Ex Works (EXW) | The importer agrees to take possession of the shipment at the point of origin and to bear all of the cost and risk of transporting the goods to the destination |
| F | Free CARRIER (FCA) | The exporter incurrs the cost of delivering the shipment to the carrier designated by the importer. FCA is normally used with intermodal transport |
| Carriage Paid To (CPT) | Same as above, but is applied to any transport mode. Risk passes to importer when shipment delivered to the main carrier | |
| Carriage and Insurance Paid To (CIP) | Same as above, but importer bears the risk of loss or damage | |
| D | Delivered at Terminal (DAT) | Seller delivers goods to a named place of destination. The seller bears all risks involved in bringing the goods to and unloading them at the place of destination |
| Delivered at Place (DAP) | Seller delivers goods at the buyer’s disposal arriving for unloading at the named destination. Seller bears all risks involved in bringing the goods to the named place | |
| Delivered Duty Paid (DDP) | Same as above, plus exporter is responsible for clearing the goods for import and paying the customs duties | |
| Sea and Inland waterway | ||
| F | Free Alongside Ship (FAS) | Same as above, but is used for water transport only. Risk is transferred when goods are delivered alongside the ship. Importer pays cost of loading |
| Free on Board (FOB) | Same as above, but is used for water transport only. Risk is transferred when goods cross the ship’s rail. Exporter pays for loading | |
| C | Cost of Freight (CFR) | Shipment contracts that obligate the exporter to obtain and pay for shipment. CFR is used for shipments by water only. Risk passes to importer at ship’s rail |
| Cost, Insurance, Freight (CIF) | Same as above, plus exporter pays for the cost of insurance. Risk of damage is the same as that for CFR and CPT | |