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ICC Incoterms
Understanding standard trade definitions to clarify responsibilities and obligations in international shipping. These terms define cost, liability, and risk transfer between buyers and sellers.
Incoterms are a set of universal rules published by the International Chamber of Commerce that define the most commonly used terms of international shipping under sales contracts.
They define which party (seller or buyer) is responsible for cost of shipping, liability, insurance obligations, and risk assumption. These terms are an industry standard to reduce confusion and disputes.
2010 terms may still be used as long as agreed upon by all parties.
Standard ICC Incoterms 2010
Risk & Cost Transfer Points
Shipper's Door
Origin Place
Alongside Ship
On Board
Freight
On Arrival
Terminal
Destination
Buyer's Door
EXWEx Works
Seller
Buyer
FCAFree Carrier
Seller
Buyer
FASFree Alongside Ship
Seller
Buyer
FOBFree On Board
Seller
Buyer
CFRCost and Freight
Seller
Buyer
CIFCost Insurance Freight
Seller
Buyer
CPTCarriage Paid To
Seller
Buyer
CIPCarriage Insurance Paid
Seller
Buyer
DATDelivered at Terminal
Seller
Buyer
DAPDelivered at Place
Seller
Buyer
DDPDelivered Duty Paid
Seller
Buyer
Seller Assumes Risk & Cost
Buyer Assumes Risk & Cost