Seller's factoryExport customsTo origin portLoaded on shipMain transportDestination portImport customsBuyer's door
EXWEx Works · Any mode◆
Seller: only makes goods available at their premises. Buyer: everything else — pickup, export customs, all transport, import, delivery. Risk passes: at the seller's door. Use when: buyer has strong logistics at origin. Watch out: buyer must handle export formalities in a foreign country — often harder than it sounds.
FCAFree Carrier · Any mode◆
Seller: export clearance + delivers to the carrier at the named place. Buyer: main transport onwards. Risk passes: when goods are handed to the buyer's carrier. Use when: containerised cargo — the modern replacement for FOB. Watch out: name the exact handover place in the contract.
FASFree Alongside Ship · Sea only◆
Seller: delivers goods alongside the vessel at the origin port. Buyer: loading, ocean freight and everything after. Risk passes: alongside the ship. Use when: breakbulk / bulk cargo. Watch out: rarely right for containers — use FCA instead.
FOBFree On Board · Sea only◆
Seller: everything until goods are on board the vessel. Buyer: ocean freight, insurance, destination costs. Risk passes: once loaded on ship. Use when: classic sea-freight buying from Asia. Watch out: for containers delivered to terminals days early, FCA reflects reality better.
CFRCost & Freight · Sea only◆
Seller: pays ocean freight to the destination port. Buyer: risk during the voyage, import, delivery. Risk passes: on loading — before the paid voyage! Use when: seller has better freight rates. Watch out: the trap — seller pays the voyage but the buyer bears its risk; insure accordingly.
CIFCost, Insurance & Freight · Sea only◆🛡
Seller: pays freight + minimum insurance to destination port. Buyer: carries voyage risk (insured), import, delivery. Risk passes: on loading. Use when: buyer wants one price incl. freight and basic cover. Watch out: only minimum cover (ICC-C) is required — upgrade for valuable cargo.
CPTCarriage Paid To · Any mode◆
Seller: pays carriage to the named destination. Buyer: risk from first carrier, import, delivery. Risk passes: at handover to the first carrier — very early. Use when: multimodal routes. Watch out: same trap as CFR — paid ≠ at seller's risk.
CIPCarriage & Insurance Paid To · Any mode◆🛡
Seller: carriage + all-risk insurance to named destination. Buyer: risk from first carrier (insured), import. Risk passes: at first carrier. Use when: multimodal with proper insurance. Watch out: unlike CIF, CIP requires maximum cover (ICC-A) — good for buyers.
DAPDelivered At Place · Any mode◆
Seller: delivers to the named place, ready for unloading. Buyer: import customs, duties, unloading. Risk passes: on arrival at the named place. Use when: door delivery, buyer handles own customs. Watch out: customs delays at import sit between the parties — agree who bears storage.
DPUDelivered at Place Unloaded · Any mode◆
Seller: delivers AND unloads at the named place. Buyer: import customs and duties. Risk passes: after unloading. Use when: terminals/warehouses where seller controls unloading. Watch out: the only term where the seller unloads — be sure they actually can.
DDPDelivered Duty Paid · Any mode◆
Seller: everything — transport, both customs, duties, taxes, to the buyer's door. Buyer: just receives. Risk passes: at delivery. Use when: buyer wants zero hassle (e-commerce style). Watch out: seller must handle import formalities in the buyer's country — often needs a local partner like us.