Incoterms Chart
The following chart shows which of the parties is responsible for what functions under the different INCOTERM, INternational COmmercial TERMS, designations.
An X indicates that the seller is responsible for that function; a minus sign (-) indicates that the buyer is responsible; N indicates that the responsibility is negotiable. If you are unfamiliar (or unsure) about the meaning of the INCOTERMs, a glossary is provided.
| Fees and Costs | EXW | FCA | FAS | FOB | CFR | CPT | CIF | CIP | DAF | DES | DEQ | DDU | DDP | |
| Buyers Product Cost | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| International Packaging | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Certification Fees | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Inspection Fees | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Loading Fees | – | X | X | X | X | X | X | X | X | X | X | X | X | |
| Cartage Fees | – | X | X | X | X | X | X | X | X | X | X | X | X | |
| US Inland Freight | – | – | X | X | X | X | X | X | X | X | X | X | X | |
| Reconsignment Fees | – | – | X | X | X | X | X | X | X | X | X | X | X | |
| Pier Delivery Charges | – | – | X | X | X | X | X | X | X | X | X | X | X | |
| Loading Cost | – | – | – | X | X | X | X | X | X | X | X | X | X | |
| Forwarding Fees | – | – | – | X | X | X | X | X | X | X | X | X | X | |
| Consular Fees | – | – | – | X | X | X | X | X | X | X | X | X | X | |
| International Freight | – | – | – | – | X | X | X | X | X | X | X | X | X | |
| Insurance | – | – | – | – | – | – | X | X | X | X | X | X | X | |
| US Bank Fees | N | N | N | N | N | N | N | N | N | N | N | N | N | |
| Buyers Bank Fees | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Unloading Fees | – | – | – | – | – | – | – | – | – | – | X | X | X | |
| Import Duty | – | – | – | – | – | – | – | – | – | – | X | X | X | |
| Import Broker | – | – | – | – | – | – | – | – | – | – | X | – | X | |
| Cartage from Pier | – | – | – | – | – | – | – | – | – | – | – | – | X | |
| Inland Freight at Destination | – | – | – | – | – | – | – | – | – | – | – | – | X | |
| Warehousing | – | – | – | – | – | – | – | – | – | – | – | – | X | |
| Documentation | EXW | FCA | FAS | FOB | CFR | CPT | CIF | CIP | DAF | DES | DEQ | DDU | DDP | |
| Proforma Invoice | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Packing List | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Certificate of Origin | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Bill of Lading | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Commercial Invoice | X | X | X | X | X | X | X | X | X | X | X | X | X | |
| Export Declaration | N | N | N | X | X | X | X | X | X | X | X | X | X | |
| Validated Export License | N | N | N | X | X | X | X | X | X | X | X | X | X | |
| Import License | – | – | – | – | – | – | – | – | – | – | X | X | X | |
| Who is: | EXW | FCA | FAS | FOB | CFR | CPT | CIF | CIP | DAF | DES | DEQ | DDU | DDP | |
| Exporter of Record? | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | |
| Importer of Record? | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | |
Glossary
EXW — Ex Works at a named point of origin (e.g., ex factory, ex mill, ex warehouse).
Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the period fixed. All other charges are for the account of the buyer.
FCA — Free Carrier, to a named place.
This term replaces the former “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. It may be used for multimode transport, container stations, and any mode of transport, including air. The seller is responsible for loading goods into the means of transportation; the buyer is responsible for all subsequent expenses. If a port of exportation is named, the costs of transporting the goods to the named port are included in the price.
FAS — Free Alongside Ship, at a named U.S. port of export.
Under this term, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port. The seller handles the cost of unloading and warfare; loading, ocean transportation, and insurance costs are left to the buyer.
FOB — Free on Board, at a named port of export.
The seller quotes the buyer a price that covers all costs up to and including delivery of goods aboard an overseas vessel.
CFR — Cost and Freight, to a named overseas port of import.
Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of destination. The cost of insurance is left to the buyer’s account. (Typically used for ocean shipments only.)
CIF — Cost, Insurance, and Freight, to a named overseas port of import.
Under this term, the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation from the vessel. (Typically used for ocean shipments only.)
CPT — Carriage Paid To
Carriage paid to named place of destination on the buyer’s side. It may be used for multimodole transport, container stations, and any mode of transport, including air. Under this term, the seller must pay the costs and freight to bring the good to the named place of destination on the buyer’s side; however, the risk of loss or damage to the goods, as well as any addittional costs due to pay for pre-carriage, export clearence, main-carriage, unloading at the agreed port of discharge under the contract of carriage. The buyer agrees to pay for everything else: additional place of destination costs that are that are under the contract of carriage, import clearence, and on-carriage.
CIP — Carriage and Insurance Paid to a named place of destination.
Carriage and Insurance Paid to named place of destination on the buyer’s side. It may ne used for multimodole transport, container stations, and any mode of transport, including air. Under this term, the seller must pay the costs and freight to bring the good to the named port of destination on the buyer’s side; however, the risk of loss or damage to the goods, as well as any additional cost due to events occurring after delivery to to the first carrier are for the account of the buyer. The seller agrees to pay for pre-carriage, export clearence, main-carriage, minimum cover marine cargo insurance so that the buyer can make a claim, unloading at the agreed port of discharge under the contract of carriage. The buyer agrees to pay for everything else: additional port of destination costs that are not under the contract of carriage, import clearence, and on-carriage.
CIP is only one of two Incoterms that require insurance. You might think that means the seller is resposible for the condition of the goods while in main-carriage trnasit. This is not the case. The risk transfers when the goods pass the ship’s rail. The seller is resposible for any mishaps on the pier side of the rail and the buyer is resposible for any mishaps on the ship-side of the rail. The seller is required to purchase insueance for the account of the buyer if anything happens in transit. If something happens after the cargo passes the ships rail, the buyer makes a claim directly to the insurance company. Be aware that only minimum cover marine cargo insurance is required, otherwise known as, free of particular average. This may not be sufficient coverage for the buyer or seller.
DAF — Delivered at Frontier, at a named place.
Delivered at frontier at a named place. The term may be used for all modes of transportation, provided that the delivery point is a land border. The seller fulfills his obligation when the goods have been delivered to the designated border place and cleared for export. The seller is not obligated to unload the arriving means of transport and the delivery place must be before the Customs border of the adjoining country. The buyer is responsible for unloading the arriving means of transport, import clearence, and on-carriage.
DES — Delivered Ex Ship, at a named port
The seller fulfils her obligation when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. Only used for sea or inland waterway transport.
DEQ — Delivered Ex Quay (Duty Paid), at a named port
The seller fulfils his obligation when the goods have been made available to the buyer on the wharf at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes, and other charges of delivering the goods to the quay. The seller is obligated to obtain the import license, either directly or indirectly. Only used for sea or inland waterway transport.
DDU — Delivered Duty Unpaid
Delivered Duty unpaid to the named place of destination on the buyer’s side. The named place can be the arrival point or any other location on the buyer’s side it is usually the buyer’s premises. The seller agrees to pay for the carriage of the goods to the buyer, not cleared for import, and not unloading from arriving means of transport. The seller bears the costs and risks involved in delivering the goods to the named place. The buyer is responsible for unloading and import clearence.
DDP — Delivered Duty Paid
Delivered Duty Paid to the named place of destination on the buyer’s side. The named place can be the arrivla point or any other location on the buyer’s side it is usually the buyer’s premises. The seller delivers the goods to the buyer, cleared for import, and not unloaded from the arriving means of transport. The seller bears the costs and risks involved in delivering the goods to the named place. The buyer is reponsible for the unloading and import clearence.
A correct understanding of INCOTERMS enable’s NSTC. to ensure that our clients properly use INCOTERMS to their benefit.