Incoterms 2020
FOB, CIF, DDP, DAP - international commercial terms for India import-export contracts. Tap any term to see full responsibilities and risk transfer details.
What are Incoterms?
Incoterms (International Commercial Terms) are a set of rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers in the delivery of goods under sales contracts.
They clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods, helping to avoid misunderstandings and disputes in international trade.
Multimodal Incoterms
Applicable to any mode of transport, including air, road, rail, or sea
iTap or hover a card to see full responsibilities
Ex Works
Any
EXW - Ex Works
The seller makes the goods available at their premises. The buyer bears all costs and risks from that point.
Seller
- Make goods available at premises
- Provide commercial invoice
- Assist buyer with export formalities (at buyer's cost)
Buyer
- All transportation costs
- Loading at seller's premises
- Export and import customs clearance
Free Carrier
Any
FCA - Free Carrier
The seller delivers goods to a carrier nominated by the buyer. Risk transfers when goods are handed to the carrier.
Seller
- Deliver goods to carrier
- Export customs clearance
- Loading if at seller's premises
Buyer
- Main carriage costs
- Import customs clearance
- Risk from delivery to carrier
Carriage Paid To
Any
CPT - Carriage Paid To
The seller pays for carriage to the named destination. Risk transfers when goods are handed to the first carrier.
Seller
- Carriage to destination
- Export customs clearance
- Delivery to first carrier
Buyer
- Import customs clearance
- Risk from first carrier
- Unloading at destination
Carriage and Insurance Paid To
Any
CIP - Carriage and Insurance Paid To
Same as CPT but seller also provides insurance. Insurance must cover minimum 110% of contract value.
Seller
- Carriage to destination
- Export customs clearance
- Insurance (110% minimum)
Buyer
- Import customs clearance
- Risk from first carrier
- Additional insurance if desired
Delivered at Place
Any
DAP - Delivered at Place
Seller delivers when goods are placed at buyer's disposal at named destination, ready for unloading.
Seller
- All carriage to destination
- Export customs clearance
- Risk until arrival at destination
Buyer
- Import customs clearance
- Unloading at destination
- Import duties and taxes
Delivered at Place Unloaded
Any
DPU - Delivered at Place Unloaded
Seller delivers and unloads goods at named destination. Only Incoterm requiring seller to unload.
Seller
- All carriage to destination
- Export customs clearance
- Unloading at destination
Buyer
- Import customs clearance
- Import duties and taxes
Delivered Duty Paid
Any
DDP - Delivered Duty Paid
Maximum seller obligation. Seller delivers goods cleared for import at destination.
Seller
- All carriage costs
- Export and import clearance
- All duties and taxes
Buyer
- Unloading at destination
- Minimum obligation
Free Alongside Ship
Sea/Inland Waterway
FAS - Free Alongside Ship
Seller delivers goods alongside the vessel at the port of shipment. Used for sea freight only.
Seller
- Deliver alongside vessel
- Export customs clearance
Buyer
- Loading onto vessel
- Main sea freight
- Import customs clearance
Free on Board
Sea/Inland Waterway
FOB - Free on Board
Seller delivers goods on board the vessel. Risk passes when goods are on board. Most common for sea freight.
Seller
- Deliver on board vessel
- Export customs clearance
- Loading onto vessel
Buyer
- Main sea freight
- Import customs clearance
- Risk from on board
Cost and Freight
Sea/Inland Waterway
CFR - Cost and Freight
Seller pays freight to destination port. Risk transfers when goods are on board at origin.
Seller
- Sea freight to destination
- Export customs clearance
- Loading onto vessel
Buyer
- Import customs clearance
- Risk from on board at origin
- Insurance recommended
Cost, Insurance, and Freight
Sea/Inland Waterway
CIF - Cost, Insurance, and Freight
Same as CFR but seller also provides marine insurance. Most commonly used term for sea freight.
Seller
- Sea freight to destination
- Export customs clearance
- Marine insurance
Buyer
- Import customs clearance
- Risk from on board at origin
- Additional insurance if desired
Important Note
Incoterms do not constitute a complete contract of sale. They should be incorporated into your sales contracts along with other essential terms such as price, payment terms, and dispute resolution mechanisms. Always consult with legal and trade experts when drafting international sales contracts.