ReferenceLook-up table, not a calculator setting
Who pays for what: the eleven delivery terms.
Incoterms are the three-letter codes that say who pays for what, and where the goods stop being your
risk. Seven work for any kind of transport; four are for ships only. Use this table to decide which one
to write into your contract. The export calculator prices the five stages exporters are usually asked
to quote — factory gate, loaded, at the port, freight paid, and freight plus insurance paid.
| Code | Name | Transport | Buyer takes over when | Must the seller insure? |
| EXW |
Ex Works |
Any mode |
Goods placed at the buyer’s disposal at the seller’s premises |
— |
| FCA |
Free Carrier |
Any mode |
Goods delivered to the carrier named by the buyer |
— |
| CPT |
Carriage Paid To |
Any mode |
Goods handed to the first carrier |
— |
| CIP |
Carriage and Insurance Paid To |
Any mode |
Goods handed to the first carrier |
Yes — ICC Clause A, all risks |
| DAP |
Delivered at Place |
Any mode |
Goods ready for unloading at the named place |
— |
| DPU |
Delivered at Place Unloaded |
Any mode |
Goods unloaded at the named place |
— |
| DDP |
Delivered Duty Paid |
Any mode |
Goods ready for unloading, import duties paid |
— |
| FAS |
Free Alongside Ship |
Sea / inland waterway |
Goods placed alongside the vessel |
— |
| FOB |
Free on Board |
Sea / inland waterway |
Goods on board the vessel |
— |
| CFR |
Cost and Freight |
Sea / inland waterway |
Goods on board the vessel |
— |
| CIF |
Cost, Insurance and Freight |
Sea / inland waterway |
Goods on board the vessel |
Yes — ICC Clause C, minimum |
A plain summary, not legal advice. The official rulebook is published by the International Chamber
of Commerce, and it sets out ten duties for the seller and ten for the buyer under each rule.
Incoterms® is their registered trademark.