Ex Works
Seller makes goods available at the named place. Buyer handles loading, export, carriage and import.
Tools / Trade terms
Know where responsibility changes.
A practical overview of the 11 Incoterms® 2020 rules used to allocate delivery tasks, costs and risk between seller and buyer.
GUIDE / 03INCOTERMS® 2020
Always write the chosen three-letter rule, the precise named place or port, and “Incoterms® 2020” in the sales contract.
Rules for any mode
Suitable for road, rail, air, sea or multimodal transport.
Free Carrier
Seller clears export and delivers to the buyer’s carrier at the named place. Risk transfers there.
Carriage Paid To
Seller pays carriage to destination, while risk transfers when goods reach the first carrier.
Carriage and Insurance Paid To
As CPT, with seller arranging cargo insurance to the agreed destination.
Delivered at Place
Seller delivers ready for unloading at destination. Buyer unloads and clears import.
Delivered at Place Unloaded
Seller delivers and unloads at destination. Buyer handles import clearance.
Delivered Duty Paid
Seller carries the widest responsibility, including delivery, import clearance and duties.
Sea and inland waterway
Use only when delivery takes place alongside or aboard a vessel.
Free Alongside Ship
Seller clears export and places goods alongside the nominated vessel at the port of shipment.
Free On Board
Seller clears export and loads goods aboard the nominated vessel. Risk transfers on board.
Cost and Freight
Seller pays ocean freight to destination port; risk transfers once goods are aboard at origin.
Cost, Insurance and Freight
As CFR, with seller arranging minimum cargo insurance for the voyage.
Use the right rule for the shipment.
Incoterms® clarify delivery, costs and risk, but they do not determine ownership, payment terms or remedies for breach. Confirm the chosen rule with your commercial and legal advisers.