Incoterms Guide
Who pays freight, insurance and duty, and where the risk passes, for every trade term we quote.
Incoterms® 2020 Trade Guide for Importers & Exporters
Clarity in international trade transactions is paramount. Review buyer vs. seller obligations, risk transfer milestones, and freight insurance coverage to structure your purchase order.
Free On Board (Named Port of Shipment)
Seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. Risk of loss passes when goods are on board the ship.
Cost, Insurance and Freight (Named Port of Destination)
Seller pays for freight and minimum marine insurance coverage up to the named destination port. Risk passes to buyer once cargo is loaded onto the vessel.
Cost and Freight (Named Destination Port)
Seller delivers goods on board the vessel and pays freight to the port of destination. Unlike CIF, the buyer procures their own marine insurance coverage.
Ex Works (Named Workshop / Yard)
Seller makes goods available at their warehouse, yard, or reconditioning facility (e.g. Alang or Singapore depot). Buyer bears all subsequent costs and risks.
Delivered Duty Paid (Named Shipyard / Berth)
Maximum obligation on the seller. Seller delivers goods cleared for import and ready for unloading at the named place of destination (shipyard or berth).
Delivered at Place (Named Port Terminal)
Seller delivers goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named terminal.