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.