INCOTERMS® 2020 now are in 2 classes:
- For any mode of transport and
- For sea and inland waterway shipping.
Incoterms are briefly described here, though we recommend a full and comprehensive study of the term/s is made to be aware of all the obligations and risks to be undertaken.
FOR ANY MODE OF TRANSPORT
- EXW = Ex Works – seller makes goods available at his warehouse, the carriage is arranged/paid by buyer.
- FCA = Free Carrier – seller arranges/pays for pre-carriage to named place in country of export.
- CPT = Carriage Paid To – seller arranges/pays for carriage to a named place of destination.
- CIP = Carriage and Insurance Paid – as CPT, plus seller insures the freight.
- DAP = Delivered at Place – seller arranges/pays for carriage to an agreed place of destination.
- DPU = Delivered at Place Unloaded – Seller delivers the goods and transfers risk to the buyer when goods are unloaded from transport at the agreed place of destination.
- DDP = Delivered, Duty Paid – seller arranges/pays for carriage to an agreed place of destination including all import duties, customs formalities and local taxes.
FOR SEA AND INLAND WATERWAY TRANSPORTATION
- FAS = Free Alongside Ship: seller arranges/pays for pre-carriage to a named port of shipment
- FOB = Free on Board: seller arranges for pre-carriage to a named port of shipment paying for all costs to on board vessel.
- **CFR = Cost and Freight: seller arranges/pays for carriage to arrival destination port.
- **CIF = Cost Insurance and Freight: as CFR plus seller insures the freight.
**Please note that CFR and CIF terms are for sea / inland waterway transportation and are therefore not suitable terms for containerized transport. CPT/CIP should be used instead.