INCO Terms

INCO Terms

Incoterms (International Commercial Terms) are globally recognized rules that define the responsibilities, costs, and risks of sellers and buyers in international trade. They act as a guideline for smooth transactions and help avoid misunderstandings between parties.

Incoterms 2020 Table

Incoterm 2020Loading on truck (carrier)Export Customs declarationCarriage to port of exportUnloading of truck in port of exportLoading charges in port of exportCarriage to port of importUnloading charges in port of importLoading on truck in port of importCarriage to place of destinationInsuranceImport Customs ClearanceImport Taxes
EXWBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer
FCASellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer
FASSellerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyer
FOBSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyer
CFRSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyer
CIFSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerSellerBuyerBuyer
DATSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyerBuyer
CPTSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerBuyer
DAPSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyer
CIPSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyer
DDPSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller

📌 Key Notes

  • EXW (Ex Works): Seller delivers goods at their premises. Buyer bears all costs, risks, and logistics.
  • FOB (Free On Board): Seller is responsible until goods are loaded on the ship. Buyer handles transport and insurance thereafter.
  • CIF (Cost, Insurance, Freight): Seller covers goods, transport, and insurance until the port of destination. Buyer manages import duties and local transport.
  • DDP (Delivered Duty Paid): Seller covers all costs, duties, and risks until goods reach the buyer.

💡 When to Use Each Incoterm

  • EXW: Buyer wants maximum control over shipment.
  • FOB: Buyer is experienced with sea freight and shipping logistics.
  • CIF: Buyer prefers seller to handle insurance and transportation.
  • DDP: Buyer wants a hassle-free delivery with all costs included.