What are the different types of Incoterms?

What are the different types of Incoterms?

Incoterms (International Commercial Terms) are standard legal terms used in import/export sales contracts to define responsibilities and liabilities when shipping commercial goods.

Here's a brief explanation of each incoterm:

EXW (Ex Works): The buyer is responsible for arranging and paying for the entire shipment, from the supplier's warehouse to the final destination.
​
​DAP (Delivered at Place): The seller arranges and pays for the entire shipment except import customs.
​

DPU (Delivered at Place Unloaded): The seller arranges and pays for all export country charges and international transit. The buyer is responsible for all charges after unloading, except charges caused by delay.
​
​DDP (Delivered Duty Paid): The seller is liable and responsible for the entire shipment, including import customs clearance and duties. The buyer is only responsible for unloading the goods at the destination.
​
​FAS (Free Alongside Ship): The seller is liable and responsible until the goods are alongside the ship, the buyer assumes responsibility for loading.
​
​FCA (Free Carrier): The seller arranges most or all of the logistics and the buyer is responsible and liable from when the cargo departs until the ultimate destination.
​
​FOB (Free On Board): The supplier is liable and responsible for the goods until they are loaded on board the ship, and then all liability transfers to the buyer.
​
​CPT (Carriage Paid To): The seller is responsible and liable for logistics in the country of origin until the buyer's forwarder's warehouse.
​
​CFR (Cost and Freight): The seller is liable and responsible at the country of origin until the goods are loaded on board the vessel and also responsible for the main carriage.
​
​CIF (Cost Insurance and Freight): The seller is responsible and liable for all requirements in the country of origin, booking the main carriage and arranging main carriage insurance.
​
​CIP (Carriage and Insurance Paid To): The seller is responsible for delivery, delivery costs, and insurance costs until goods are transferred to the first carrier for transport, after that the buyer assumes all responsibility.

    • Related Articles

    • Different types of users

      WebCargo has four different user types available on the platform with different privileges. The amount of access you have on the platform will depend on your user type. Understanding the privileges associated with each role can help to clarify the ...

    • How to set up local charges to appear based on incoterms

      Configuring local charges based on Incoterms can be useful, as the data can be presented in a simple and easy way within WebCargo’s analytics reporting feature. This allows you to see a precise analysis of your business, as well as add preset ...

    • What are Incoterms?

      Incoterms, short for International Commercial Terms, are standard terms used in import and export contracts to define the responsibilities and liabilities of parties involved in the shipping of commercial goods. Most of the incoterms apply to all ...

    • What are the three types of customs entries?

      The three types of customs entries are: Formal entries - applies to commercial shipments valued at $2,500 or more. These shipments typically require more documentation and a higher level of scrutiny. Informal entries - applies to commercial or ...

    • How to quote in a different currency

      Your quotation currency, by default, will be in the currency of your logged-in country. For example, if you’re in the UK, the currency shown on the quotation is pound/Sterling. You’re able to change the quotation currency of the price shown in the ...