A quick reference guide to the 11 international commercial terms that define who does what — and who pays — in an international shipment.
Each Incoterm shows who is responsible for each leg of the shipment — from export packing at origin all the way to delivery at destination. The cyan bar shows legs paid by the seller; grey legs are the buyer's responsibility. Risk (loss or damage in transit) transfers from seller to buyer at the "risk transfer" point noted on each card.
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Buyer collects the goods at the seller's factory or warehouse. Seller has minimal obligation; buyer arranges everything from origin loading onward.
Seller delivers cleared goods to a carrier or place nominated by the buyer. Risk transfers at that hand-over point.
Seller pays for carriage to the named destination. Risk transfers to the buyer when goods are handed to the first carrier.
Same as CPT, but seller also arranges (and pays for) all-risk insurance cover for the buyer to the destination.
Seller delivers goods ready for unloading at the named destination. Buyer handles import clearance and unloading.
Seller delivers AND unloads at the destination. The only Incoterm that requires seller to unload.
Maximum seller obligation — includes import clearance, duties, and taxes. Buyer receives the goods ready to use.
Seller delivers goods alongside the buyer's nominated vessel at the origin port. Risk transfers there.
Seller loads goods on board the buyer's vessel at the origin port. Risk transfers once goods are on board.
Seller pays cost and freight to bring the goods to the destination port, but risk transfers when goods are on board at origin.
Same as CFR plus seller arranges (and pays for) marine insurance for the buyer's risk in transit.
| Incoterm | Export Packing | Export Clearance | Origin Handling | Main Freight | Insurance | Destination Handling | Import Clearance | Delivery to Destination |
|---|---|---|---|---|---|---|---|---|
| EXW Ex Works | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FCA Free Carrier | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer |
| CPT Carriage Paid To | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer |
| CIP Carriage & Insurance Paid To | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer |
| DAP Delivered at Place | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Seller |
| DPU Delivered at Place Unloaded | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Seller |
| DDP Delivered Duty Paid | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| FAS Free Alongside Ship | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer |
| FOB Free On Board | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer |
| CFR Cost & Freight | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer |
| CIF Cost, Insurance & Freight | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer |
Based on Incoterms® 2020 published by the International Chamber of Commerce (ICC). This is a simplified reference — for the definitive rulebook and edge cases refer to the ICC publication or your customs broker.