Incoterms
Delivery terms that set who pays for each leg of the trip and where the risk passes from seller to buyer.
How to read the track
The ringed dot marks where risk passes to the buyer. Everything before it is the seller's.
Any mode of transport
EXW
Least for the sellerEx Works
The seller makes the goods available at their premises. The buyer bears all costs and risks from there to the destination.
Risk passes at the seller's premises.
FCA
Free Carrier
The seller hands the goods to a carrier or another person named by the buyer, at the seller's premises or another named place.
Risk passes when the carrier takes the goods.
CPT
Carriage Paid To
The seller pays for carriage to the named destination. Risk transfers once the goods are handed to the carrier.
Risk passes at the first carrier. The seller pays freight.
CIP
Carriage and Insurance Paid To
Like CPT, but the seller also insures the goods against loss or damage in transit.
Risk passes at the first carrier. The seller pays freight and insurance.
DAP
Delivered At Place
The seller delivers when the goods are at the buyer's disposal on the arriving transport, ready for unloading at the named place.
Risk passes at destination, before unloading.
DAT
Delivered At Terminal
The seller delivers once the goods are unloaded and placed at the buyer's disposal at a named terminal at the destination.
Risk passes after unloading at the terminal.
DDP
Most for the sellerDelivered Duty Paid
The seller bears every risk and cost to the named destination, including duties, taxes and other charges.
Risk passes at destination. The seller pays import duties.
DDU
Delivered Duty Unpaid
The seller delivers to the named destination but does not clear the goods for import or pay import duties.
Risk passes at destination. The buyer pays import duties.
Sea and inland waterway
FOB
Free On Board
The seller delivers the goods on board the vessel named by the buyer. Their obligation ends once the goods are on the ship.
Risk passes on board at the port of loading.
CIF
Seller insuresCost, Insurance and Freight
The seller pays cost, insurance and freight to the destination port. Risk passes to the buyer once the goods are on board.
Risk passes on board. The seller pays freight and insurance.
US shipping terms
FOB Origin
Free On Board Origin
The buyer pays for shipping and takes on the risk as soon as the seller ships the goods.
Risk passes when the goods leave the seller.
FOB Destination
Free On Board Destination
The seller pays for shipping and keeps the risk until the goods reach the buyer's location.
Risk passes at the buyer's location.