Incoterms
Used in International Trade
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.
FAS (free alongside ship) at a named U.S. port of export. This
includes the price for the goods, plus charges to deliver the goods from the
factory to alongside the vessel at the U.S. exit port. The seller handles
the cost of unloading and wharfage. The buyer covers the cost to load the
goods on the vessel and all the insurance and transportation costs to the
destination port.
FOB (free on board) at a named U.S. port of export. This includes
the FAS cost, plus the cost to load the goods on the vessel. The buyer pays
for insurance and transportation to the foreign port.
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 debarkation. The cost of insurance is
left to the buyer's account. (Typically used for ocean shipments only.)
CIF (cost, insurance, freight) to a named overseas port of import.
This includes the FOB cost, plus all insurance and transportation to costs
to the foreign port.
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
multimodal transport, container stations, and any mode of transport,
including air.
CPT (carriage paid to) and CIP (carriage and insurance paid to) a
named place of destination. Used in place of CFR and CIF, respectively, for
shipment by modes other than water.
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