INCOTERMS 2020

International Commercial Terms of Sale

“E” Term “F” Terms “C” Terms “D” Terms

Origin Freight Charges Not Paid Freight Charges Paid Destination / Arrival
IncoTerms 2020 EXW FCA FAS FOB CFR CIF CPT CIP DAP DPU DDP
Ex-Works Free Carrier Free Free On Board Cost & Freight Cost, Freight Carriage Paid Carriage & Delivered At Delivered At Delivered Duty
(Place) (Place) Alongside Ship (Port) (Port) & Insurance to (Place) Insurance Paid Place Place Unloaded Paid
(Port) (Port) to (Place) (Place) (Place) (Place)
Services Responsibility & Charges
Warehousing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export Packing Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Origin Loading Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Inland Freight Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Port Receiving Charges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Forwarder Charges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Ocean/Air Freight Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller
Insurance No obligation to buyer or seller Seller N/O Seller No obligation to buyer or seller
Destination Charges Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller
Customs Clearance Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Customs Duties Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Destination Delivery Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller
Risk/Responsibility, Transfers
Risk Transfers At Warehouse On Truck at At Named Port At Named Port On Board On Board On Board On Board Vessel On Delivery On Unloading On Delivery
Named Place Named Place On Alongside On Board Ship Vessel at Port Vessel at Port Vessel at Port at Port of By Carrier at Named Place By Carrier at
Ship of Shipment of Shipment of Shipment Shipment At Named Place Named Place
Duty & Tax Paid

Seller / Buyer Obligations:

Ex-Works - Means that the seller delivers when it places the goods at the disposal of the buyer at the seller's premises or at another named place. The Seller does not need to load the goods on any collecting vehicle, nor does it
need to clear the goods for export, where such clearance is applicable. Ex-Works represents the minimum obligation for the seller.
FAS, FOB, FCA, CFR, CIF, CPT, CIP, DAP, DPU - Requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or pay any import duty or arrange import
customs formalities.
DDP - Requires seller to clear the goods for export, where applicable and import, where applicable. The seller bears all costs and risks involved in bringing the goods therefore (named place), including VAT and or import
related taxes, unless expressly agreed otherwise in the sales contract.

Risk & Responsibility Passes When:

Under the Incoterms rules EXW, FCA, DAP, DPU, DDP, FAS, FOB, the named place is the place where delivery takes place and where risks passes from the seller to the buyer.
When CPT, CIP, CFR or CIF are used, the seller fulfills it's obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination. Under these four (4) Incoterm rules, the place is the
place of destination to which carriage is paid.