INCO Terms

INCO terms are a series of standardized terms used in international trade to clearly communicate the roles and responsibilities of the buyer and seller in relation to the transportation of goods. These terms help to ensure that all parties involved in a trade agreement have a clear understanding of the costs and risks associated with the transportation and delivery of goods.

EXW (Ex Works):
This means that the seller delivers the goods to the buyer at the seller's own premises (e.g. factory, warehouse, etc.) and the buyer is responsible for paying all transportation and other costs from that point onward.

FCA (Free Carrier):
The seller delivers the goods to a carrier or other nominated person at a specified place (e.g. factory, warehouse, etc.), and the buyer is responsible for paying all transportation and other costs from that point onward.

FAS (Free Alongside Ship):
The seller delivers the goods alongside a vessel at a specified port, and the buyer is responsible for paying all transportation and other costs from that point onward.

FOB (Free On Board):
The seller delivers the goods on board a vessel at a specified port, and the buyer is responsible for paying all transportation and other costs from that point onward.

CFR (Cost and Freight):
The seller delivers the goods on board a vessel at a specified port and pays the cost of transportation to a named destination. The buyer is responsible for paying any additional costs (e.g. insurance, customs, etc.) at the destination.

CIF (Cost, Insurance, and Freight):
The seller delivers the goods on board a vessel at a specified port, pays the cost of transportation to a named destination, and also arranges and pays for the insurance coverage. The buyer is responsible for paying any additional costs at the destination.

CPT (Carriage Paid To):
The seller delivers the goods to a carrier at a specified place and pays for the transportation to a named destination. The buyer is responsible for paying any additional costs (e.g. insurance, customs, etc.) at the destination.

CIP (Carriage and Insurance Paid To):
The seller delivers the goods to a carrier at a specified place and pays for the transportation and insurance coverage to a named destination. The buyer is responsible for paying any additional costs at the destination.

DAT (Delivered At Terminal):
The seller delivers the goods to a designated terminal at a specified port or place of destination and the buyer is responsible for paying all transportation and other costs from that point onward.

DAP (Delivered At Place):
The seller delivers the goods to a designated place at the named destination and the buyer is responsible for paying all transportation and other costs from that point onward.

DDP (Delivered Duty Paid):
The seller delivers the goods to a designated place at the named destination and is responsible for paying all transportation, insurance, and other costs, as well as any applicable duties and taxes.

DDU (Delivered Duty Unpaid):
The seller delivers the goods to a designated place at the named destination and is responsible for paying all transportation and insurance costs. The buyer is responsible for paying any applicable duties and taxes.