INCO TERMS
Clear Terms. Confident Shipping.
International Commercial Terms define the responsibilities of buyers and sellers in global trade. Use this guide to understand who pays for what at each stage of shipment.
Shipper / Seller pays
Consignee / Buyer pays
Quick Reference Guide
Each INCO Term defines the point at which risk and cost transfer from seller to buyer. Choose the right term before finalising your trade contract.
EXW
Ex Works
Seller makes goods available at their premises. Buyer bears all costs and risks from that point.
FCA
Free Carrier
Seller delivers goods to a named carrier at a specified place. Risk transfers at that point.
FAS
Free Alongside Ship
Seller delivers when goods are placed alongside the vessel at the named port of shipment.
FOB
Free On Board
Seller delivers goods on board the vessel nominated by the buyer at the named port.
CFR
Cost & Freight
Seller pays cost and freight to bring goods to the port of destination. Risk transfers on board.
CIF
Cost, Insurance & Freight
Like CFR but seller also provides minimum insurance cover during carriage.
CPT
Carriage Paid To
Seller pays freight to the named destination. Risk transfers when goods are handed to carrier.
CIP
Carriage & Insurance Paid
Like CPT but seller also provides insurance cover against buyer's risk during transit.
DDP
Delivered Duty Paid
Maximum obligation for seller — delivers to named place, import-cleared, duties paid.
