| EXW |
Ex WorksAny mode |
Nothing past your loading dock |
At your premises, when goods are made available |
Buyer |
| Lowest headline price you can quote. But the buyer often can't file U.S. export declarations, so the obligation lands back on you anyway — and you lose all visibility. Quote FCA instead nine times out of ten. |
| FCA |
Free CarrierAny mode |
Export clearance, and delivery to the named place |
On loading at your premises, or when placed at the buyer's carrier |
You |
| The term EXW should usually be. You clear export — which you're equipped to do — and risk ends early. Under Incoterms 2020 you can also require an on-board bill of lading, which matters if your buyer pays by letter of credit. |
| FAS |
Free Alongside ShipSea only |
Inland haulage and export clearance, to the quay |
Alongside the vessel at the named port |
You |
| Bulk and breakbulk cargo. Rarely right for containers, because your risk ends before the container is loaded. |
| FOB |
Free On BoardSea only |
Everything to the vessel, including export clearance |
When goods are on board the vessel |
You |
| The most common ocean term and usually the fairest split. Quote this unless you have a reason not to. |
| CFR |
Cost and FreightSea only |
Ocean freight to the destination port |
On board at origin — before you've paid the freight |
You |
| When you want to control the carrier and routing. Note the gap: you pay to destination but your risk ended at origin. Insure it anyway. |
| CIF |
Cost, Insurance & FreightSea only |
Ocean freight plus insurance to the destination port |
On board at origin |
You |
| Letters of credit often demand it. The catch: minimum cover is Institute Cargo Clauses (C) — thin. Buy better cover than the term requires. |
| CPT |
Carriage Paid ToAny mode |
Carriage to the named destination |
When handed to the first carrier |
You |
| The multimodal equivalent of CFR. Watch the risk transfer point — it's much earlier than most sellers assume. |
| CIP |
Carriage and Insurance Paid ToAny mode |
Carriage plus insurance to the named destination |
When handed to the first carrier |
You |
| Since Incoterms 2020, CIP requires all-risks cover (ICC A), not the minimum CIF allows. Better protection for your buyer, higher cost to you — price it in. |
| DAP |
Delivered At PlaceAny mode |
Everything to the named destination, not unloaded |
On arrival at the destination, ready for unloading |
You |
| A strong offer that stops short of foreign duty exposure. Often the smart alternative to DDP. |
| DPU |
Delivered at Place UnloadedAny mode |
Everything to destination including unloading |
After unloading at the named destination |
You |
| Replaced DAT in Incoterms 2020. The only term where you're responsible for unloading — make sure you can actually do it at that site. |
| DDP |
Delivered Duty PaidAny mode |
Everything, including foreign import duty and taxes |
On arrival at the buyer's door |
You (both ends) |
| The strongest offer you can make and the one most likely to cost more than you quoted. Never quote it without checking the destination duty rate and whether a foreign entity may act as importer of record there — in several countries it can't. |