Incoterms

An illustration to the Incoterms is provided here under.

Incoterms published by the International Chamber of Commerce (ICC)

Incoterms 2020

EXW - Ex Works

EXW – Ex Works (named place)

The meaning of it is that the recipient takes the goods from the premises of the supplier, it can be a store, warehouse, etc. The supplier does not bear any obligations, except for the shipment of goods. All costs are borne by the recipient. EXW is not intended for the transport of goods to the EU. EXW is not used if the recipient is not able to export independently. EXW is for domestic traffic. EXW condition is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


FCA - Free CArrier

FCA - Free Carrier (named place of origin)

The most common term (almost 40% of international treaties are drawn up with this rule), because it is universal and easy to use. The best benefits are the use of any type of transport and any place of delivery of goods that is located in the seller’s country. There are 2 points of dispatch:

1. A point of dispatch of goods that belongs to the seller - this can be his warehouse, store, etc. Delivery is considered completed if the goods are loaded on the buyer's vehicle or transferred to the courier specified by the buyer.

2. A point that does not belong to the seller - it can be a seaport, airport, etc. Delivery is considered completed when the goods have been transferred to the carrier from the seller’s vehicle. Unloading goods from the seller’s vehicle is not the responsibility of the carrier.

If the buyer instructed to give the seller a package of documents (for example, a bill of lading marked “on board” or an air waybill) then the carrier must provide all original consignment notes to the seller.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


FAS – Free Alongside Ship

FAS – Free Alongside Ship

The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway. Supplier pays the export duty, packaging of goods and transportation of cargo to the port, as well as the possible costs of arrival at the port, and provides the relevant documentation. Recipient loads the goods onto the ship, hires and pays the ship, bears all the costs of transporting the goods to the destination, insures the goods, pays import duty, relevant certificates, licenses, etc. FAS is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


FOB – Free On Board

FOB - Free On Board (named port of loading)

The meaning of it is that the delivery is completed for the supplier when the product is on board the ship hired by the recipient. FOB is intended only for transporting goods by sea or inland waterway. The responsibilities of the supplier and the recipient are shared equally. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board and provides the relevant documentation. Recipient hires and pays the ship, insures the goods, pays import duty, relevant certificates, licenses, etc. FOB is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


CFR - Cost and Freight

CFR/C&F - Cost and Freight (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the product is on board the ship hired by the supplier to a port of destination. CFR is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship and provides the relevant documentation. Recipient unloads the vessel, delivers the goods to the destination, insures the goods, pays import duty, relevant certificates, licenses, etc. CFR is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


CIF - Cost, Insurance & Freight

CIF - Cost, Insurance and Freight (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the product came on board the vessel, products have been insured by the supplier, and the vessel was hired by him to transport the goods to the destination port, which is established in the agreement. CIF is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, insures the goods and provides the relevant documentation. Recipient unloads the vessel, pays import duty, relevant certificates, licenses, etc., delivers the goods to the point set in the agreement. CIF is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


CIP - Carriage and Insurance Paid Тo

CIF - Cost, Insurance and Freight (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the product came on board the vessel, products have been insured by the supplier, and the vessel was hired by him to transport the goods to the destination port, which is established in the agreement. CIF is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, insures the goods and provides the relevant documentation. Recipient unloads the vessel, pays import duty, relevant certificates, licenses, etc., delivers the goods to the point set in the agreement. CIF is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DAP - Delivered at Place

DAP - Delivered at Place

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient and ready for unloading at the indicated destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination, its unloading. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, provides the relevant documentation, and also pays for unloading from the ship and delivery to the final destination. Recipient unloads a vehicle on spot, insures the goods at will, pays import duty, relevant certificates, licenses, etc. DAP is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DPU - Delivered Named Place Unloaded

DPU - Delivered Named Place Unloaded

The meaning of it is that the delivery is completed for the supplier when the goods are placed at the disposal of the recipient at the indicated place. Supplier must bear all costs for export duties and delivery of goods to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the cargo to the port, loads the products on board, hires and pays the ship, engages in unloading from a ship, and optionally delivers and unloads at the destination. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc. DPU is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DDP - Delivered Duty Paid

DDP - Delivered Duty Paid

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient, import duty paid and cargo ready for unloading at the indicated destination. DDP clause implies maximum obligations for the shipper, as opposed to EXW clause, where all shipping responsibilities are placed on the recipient. Recipient assumes only the unloading of goods on the spot and insurance of the goods at will. All other costs are transferred to the supplier (export and import payments, costs of transportation of goods) DDP is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B

Expected changes

CNI - Cost and Insurance

CNI - Cost and Insurance

The term means that delivery is completed for the supplier, if the goods are insured, placed at the indicated port of shipment This term is included in category “C” and means that all duties for the safety of the goods are transferred at the point of departure from the supplier to the recipient. Also, this concept will allow the supplier-exporter to be responsible for the international insurance coverage of the goods. CNI contract terms include the cost of international insurance coverage at the expense of the supplier, and does not include freight (difference between CNI and CRF/CIF). The term is intended to eliminate all inaccuracies between the terms FCA and CFR / CIF.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B

Incoterms 2010

DAT - Delivered at Terminal

DAT - Delivered at Terminal (...named terminal at port or place of destination)

The meaning of it is that the procurement is completed for the supplier when the loads are available to the recipient at the destination terminal. Supplier must bear all costs for export duties and supply of cargo to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the goods to the port, loads the products on board, hires and pays the ship, engages in unloading from a vessel. Recipient insures the cargo at will, pays delivery to destination, import duty, unloading, relevant certificates, licenses, etc. DAT is used to transport cargo by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B

Incoterms 2000

DDU - Delivered Duty Unpaid

DDU - Delivered Duty Unpaid (named place of destination)

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the indicated destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, provides the relevant documentation, and also pays for delivery to the final destination. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot. DDU is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DES - Delivered Ex Ship

DES - Delivered Ex Ship (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the indicated port of destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. DES is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, engages in unloading from a ship. Recipient insures the goods at will, arranges last mile delivery, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot. DES is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DEQ - Delivered Ex Quay

DEQ - Delivered Ex Quay (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the goods are placed at the disposal of the recipient at the indicated port. DEQ is intended only for transporting goods by sea or inland waterway. Supplier must bear all costs for export duties and delivery of goods to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the cargo to the port, loads the products on board, hires and pays the ship, engages in unloading from a ship and covers port fees to bring the cargo ex quay. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc., delivers and unloads cargo at destination. DEQ is designed to transport goods in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B


DAF - Delivered At Frontier

DAF - Delivered At Frontier (named place)

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the specified location on the border. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, for unloading from the ship and delivery to the named place on border, provides the relevant documentation. Recipient arranges last mile delivery, insures the goods at will, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot DAF is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.


Incoterm/Cost EXW FCA CPT CIP FAS FOB CFR CIF DPU DAP DDP
Packaging S S S S S S S S S S S
Loading from warehouse S S S S S S S S S S S
Export customs clearance B S S S S S S S S S S
Pre-carriage B B S S S S S S S S S
Origin port fees B B B B S S S S S S S
Handling at departure (OTHC) B B B B B S S S S S S
Main transportation B B B B B B S S S S S
Transportation insurance B B B S B B B S B B B
Handling arrival (DTHC) B B B B B B B B S S S
Destination port fees B B B B B B B B B S S
Post carriage B B B B B B B B B S S
Import customs clearance B B B B B B B B B B S
Unloading into warehouse B B B B B B B B B B B