Understand who is responsible for cost, risk and delivery.
Incoterms define buyer and seller responsibilities in international contracts.
Seller makes goods available at their premises.
FCASeller delivers goods to a nominated carrier.
FASSeller delivers alongside the vessel.
FOBSeller loads goods onto the vessel.
CFRSeller pays cost and freight to destination.
CIFSeller pays cost, insurance and freight.
DAPSeller delivers at a named destination.
DDPSeller delivers cleared for import.
This summary is for general guidance only. Please confirm the applicable Incoterms version with our team.
Follow the cargo from the seller's factory to the buyer's door - the map shows who pays each leg and where the risk passes over.
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In plain terms: The seller simply makes the goods ready at their own factory or warehouse. From that moment the buyer arranges and pays for everything - pickup, export paperwork, shipping and import. Cheapest for the seller, most work for the buyer.
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In plain terms: The seller delivers the goods, already cleared for export, to a carrier or place the buyer names (often the port). Once handed over, onward cost and risk are the buyer's.
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In plain terms: The seller puts the goods on the dock right alongside the vessel, cleared for export. From there the buyer takes over - loading, sea freight and import. Mainly used for bulky or bulk sea cargo.
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In plain terms: The seller loads the goods onto the ship and clears export. The moment they are on board, risk passes to the buyer, who then pays the sea freight and handles import. The classic sea-shipment term.
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In plain terms: The seller pays the sea freight all the way to the destination port, but risk still passes to the buyer the moment the goods are on board at origin. So the seller pays further than they are liable, and no insurance is included.
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In plain terms: Same as CFR - the seller pays freight to the destination port and risk passes on board - plus the seller must buy marine insurance for the buyer's benefit during the voyage. Very common for sea cargo.
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In plain terms: The seller carries cost and risk almost the whole way, delivering the goods to a named place in the buyer's country (even their door), ready for unloading. The buyer only handles import clearance and duties.
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In plain terms: The seller does everything - shipping, export and import clearance, duties and taxes - and delivers to the buyer's door. Easiest for the buyer, most responsibility for the seller.
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