Trade Terms Guide
Incoterms 2020 Explained
Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international trade. Here is your complete reference guide.
| Code | Full Name | Seller Responsible For | Buyer Responsible For | Mode |
|---|---|---|---|---|
| EXW | Ex Works | Making goods available at their premises | All transport, export & import costs | Any |
| FCA | Free Carrier | Delivery to named carrier at origin | Main carriage, import costs | Any |
| CPT | Carriage Paid To | Carriage to named destination | Import duties, unloading | Any |
| CIP | Carriage & Insurance Paid | Carriage + insurance to destination | Import duties | Any |
| DAP | Delivered At Place | All costs to destination, uncleared | Import duties & taxes | Any |
| DPU | Delivered At Place Unloaded | All costs including unloading | Import duties & taxes | Any |
| DDP | Delivered Duty Paid | Everything including import duties | Nothing | Any |
| FAS | Free Alongside Ship | Delivery alongside vessel at port | Loading, freight, insurance, import | Sea only |
| FOB | Free On Board | Loading onto vessel at origin port | Freight, insurance, import costs | Sea only |
| CFR | Cost & Freight | Freight to destination port | Insurance, import costs, delivery | Sea only |
| CIF | Cost, Insurance & Freight | Freight + minimum insurance to dest. | Import costs, delivery inland | Sea only |
❓ Which Incoterm Should I Use?
The right Incoterm depends on your relationship with the supplier, your ability to arrange transport, and your risk appetite. Contact our trade experts for a free consultation.
🔄 Key Change in 2020
Incoterms 2020 introduced DPU (replacing DAT), increased insurance requirements under CIP (now Institute Cargo Clauses A), and clarified rules for own-vessel transport under FCA.
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