Shipping terms

Incoterms 2020 — who pays for what

The eleven international trade terms, side by side. Pick a term to see exactly where the seller's responsibility ends and the buyer's begins — and where risk transfers.

Any transport mode
Sea / inland waterway only

Transport modes Road Rail Sea Air

Seller's obligations

    Buyer's obligations

      origin · seller destination · buyer Packaging Loading Exportcustoms Carriage Unloading Importcustoms Duties risk transfers
      seller — cost buyer — cost risk transfers

      All eleven terms

      TermName PackLoadExportFreight InsureUnloadImportDuties Risk passes to buyer
      EXWEx WorksSBBBBBBseller's premises
      FCAFree CarrierSSSBBBBhandover to carrier
      CPTCarriage Paid ToSSSSBBBfirst carrier (origin)
      CIPCarriage & Insurance Paid ToSSSSSBBBfirst carrier (origin)
      DAPDelivered at PlaceSSSSBBBarrival, ready to unload
      DPUDelivered at Place UnloadedSSSSSBBafter unloading
      DDPDelivered Duty PaidSSSSBSSarrival, ready to unload
      FASFree Alongside ShipSSSBBBBalongside ship (origin)
      FOBFree on BoardSSSBBBBon board (origin)
      CFRCost & FreightSSSSBBBon board (origin)
      CIFCost, Insurance & FreightSSSSSBBBon board (origin)
      E — EXWDeparture term. Minimum seller obligation.
      F — FCA · FAS · FOBSeller hands off to the carrier; buyer pays the main freight.
      C — CPT · CIP · CFR · CIFSeller pays main freight, but risk passes at origin — cost and risk split.
      D — DAP · DPU · DDPSeller delivers at destination. Maximum seller obligation.

      Containerised cargo: use FCA / CPT / CIP rather than FOB / CFR / CIF. CycleCNC ships DAP across the EU, UK and Switzerland.