What are Incoterms?

INCOTERMS are a set of three-letter standard trade import and export shipping terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment.

EXW (EX Works)

EX Works or EXW. This term may be used for either domestic or international trade.

FCA (Free Carrier)

Free Carrier or FCA. This term may be used whatever mode or modes of transport will be used.

CPT (Carriage Paid To)

Carriage Paid To or CPT. This term may be used whatever mode or modes of transport will be used.

CIP (Carriage & Insurance Paid)

Carriage and Insurance Paid or CIP. This term may be used whatever mode or modes of transport will be used.

DAT (Delivered at Terminal)

Delivered at Terminal or DAT. This term may be used regardless of the mode or modes of carriage to be used.

DAP (Delivered at Place)

Delivered at Place or DAP. This term may be used whatever mode or modes of transport will be used.

DDP (Delivered Duty Paid)

Delivered Duty Paid or DDP. This term may be used whatever mode or modes of transport may be used.

FAS (Free Alongside Ship)

Free Alongside Ship or FAS. The seller delivers the goods when they are placed alongside the vessel nominated.

FOB (Free on Board)

Free On Board or FOB. Seller pays for transportation of the goods to the port of shipment, plus loading costs.

CFR (Cost & Freight)

Cost and Freight or CFR. This rule is intended for use only when carriage is by sea or inland waterway.

CIF (Cost Insurance & Freight)

Cost Insurance and Freight or CIF. This term is to be used only when carriage is by sea or inland waterway.