These are internationally recognized terms of sale for the delivery of goods, defining the responsibilities and obligations of buyers and sellers in international trade transactions.
Here are the main Incoterms 2020:
- EXW (Ex Works): The seller makes the goods available at their premises. The buyer is responsible for all transportation costs, risks, and any customs duties.
- FCA (Free Carrier): The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the seller’s premises or another named place. The buyer is responsible for all costs beyond this point.
- CPT (Carriage Paid To): The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed upon between parties), and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
- CIP (Carriage and Insurance Paid To): This term is the same as CPT but also requires the seller to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage.
- DAP (Delivered at Place): The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.
- DPU (Delivered at Place Unloaded): This is the same as DAP, but the seller is responsible for unloading the goods at the named place of destination.
- DDP (Delivered Duty Paid): The seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination.
- FAS (Free Alongside Ship): The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.
- FOB (Free on Board): The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment.
- CFR (Cost and Freight): The seller delivers the goods on board the vessel or procures the goods already so delivered.
- CIF (Cost, Insurance, and Freight): The seller delivers the goods on board the vessel or procures the goods already so delivered.
Please verify with the latest information or updates, as Incoterms may have been revised since my last update.