Incoterm

Description

CIF

Cost, Insurance, Freight

•Seller – Responsible for costs incurred in transporting freight to destination port, including marine insurance.

•Buyer – Responsible for foreign clearance/taxes and transport to final destination.

Note: The quoted price includes all goods, insurance and freight costs.

CIP

Carriage and Insurance Paid

•Buyer – Responsible only for custom duties/taxes abroad and the delivery charges to the final destination.

•Seller – Responsible for everything else.

Note: Risk of loss or damage is transferred from seller to buyer when goods have been delivered to the carrier.

CPT

Carriage Paid To

Buyer is responsible only for insurance, custom duties and taxes abroad, and the delivery charges to the final destination.

Seller is responsible for everything else.

Note: Risk of loss or damage is transferred from seller to buyer when goods have been delivered to the carrier.

CFR

Cost and FReight

•Seller – Responsible for costs incurred in transporting freight to destination port.

•Buyer –  Responsible for insurance, foreign clearance/taxes, and transport to final destination.

DDP

Delivery Duty Paid

Seller is responsible for all transportation, customs clearance, and duties or taxes (a totally prepaid shipment).

Note: This field is mandatory for FedEx IGC shipment.

DDU

Delivery Duty Unpaid

•Seller – Responsible for all transportation and customs clearance.

•Buyer – Responsible only for the payment of customs duties/taxes abroad.

DAP

Delivered At Place

The Seller delivers when the goods are placed at the Buyer's disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place.

EXW

EX Works

•Seller – Responsible only for storage/labor at point of origin, and export packing.

•Buyer – Responsible for everything else.

FCA

Free CArrier

•Seller – Responsible only up to and including loading at point of origin.

•Buyer – Responsible the rest of the way including inland transport to the port after loading at point of origin.

FOB

Free On Board

•Seller – Responsible for transporting goods to the specified location or port of exit if no specific location is named.

•Buyer – Responsible for transport beyond specified point, or the exit port.

Note: The quoted price applies only at the inland shipping point, and the seller takes responsibility for loading of the goods on, or in, railway cars, trucks, barges, aircraft, or other transport modes.

DAT

Delivered At Terminal

Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer's disposal at a named terminal at the named port or place of destination. "Terminal" includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.