TERMS

EXW
Ex Works
(MULTIMODAL)

FCA
Free Carrier
(MULTIMODAL)

CPT
Carriage Paid To
(MULTIMODAL)

CIP
Carriage &
Insurance Paid To
(MULTIMODAL)

DAT
Delivered At
Terminal
(MULTIMODAL)

DAP
Delivered At Place
(MULTIMODAL)

INCOTERMS 2010
DETAILS
- (named place of delivery)
- seller makes the goods available at its premises
- used when making an initial quotation for the sale of goods w/o any cost included
- buyer pays all transportation cost & bears the risks for bringing the goods to final
destination
- MAXIMUM obligation of the BUYER
- MINIMUM obligation of the SELLER
- seller doesnt load the goods on vehicles & doesnt clear for export
FORMULA: EXW = FOB O/C (SEA)
EXW = FCA O/C (AIR)
- (named place of delivery)
- seller hands over the goods, cleared for export into the disposal of the first carrier
(named by buyer) at the named place
- seller pays for carriage to the named point of delivery
- risk is passes when the goods are handed to the first carrier
FORMULA: FCA = EXW + O/C (SEA/AIR)
- (named place of destination)
- seller delivers the goods to the carrier at an agreed place of delivery
- seller pays the transport of delivery
- risk is transferred at the place of delivery
FORMULA: CPT = EXW + O/C (SEA/AIR)
- (named place of destination)
- the containerized transport equivalent of CIF
- seller pays for carriage and insurance to the destination point
- risk is transferred at the place of delivery
FORMULA: CIP = FOB + INS +FRT (SEA)
CIP = FCA + INS +FRT (AIR)
- (named terminal at port or place of destination)
- seller delivers the goods unloaded to the terminal
- seller pays the carriage to the terminal, except the cost related to import clearance
- risk is transferred as soon as the goods are unloaded at the terminal
FORMULA: DAT = FOB + FRT + O/C
(SEA)
DAT = FCA + FRT + O/C
(AIR)

- (named place of destination)

- seller delivers the goods to the disposal of the buyer
- seller pays the carriage to the terminal, except the cost related to import clearance
- seller assumes the risk prior to the point when goods are ready for unloading by the
buyer
FORMULA: DAP = FOB + FRT + O/C
(SEA)
DAP = FCA + FRT +O/C
(AIR)
Prepared By: Archer Sagang

DDP
Delivered Duty Paid
(MULTIMODAL)

- (named place of destination)

- seller is responsible for bringing the goods to the destination, paying any duties &
taxes and all cost bringing the goods to destination
- buyer is responsible for unloading
- risk is transferred as soon as the buyer has the access to the goods ready for
unloading
- MAXIMUM obligation of the SELLER
- MINIMUM obligation of the BUYER
FORMULA: DDP = FOB + FRT + O/C
(SEA)
DDP = FCA + FRT + O/C
(AIR)
NOTE: DAT, DAP, and DDP do not include INSURANCE
Their O/C is the expenses incurred in the country of destination.

FAS
Free Alongside Ship
(UNIMODAL)
(SEA ONLY)

FOB
Free On Board
(UNIMODAL)
(SEA ONLY)

CFR
Cost and Freight
(UNIMODAL)
(SEA ONLY)

CIF
Cost, Insurance &
Freight
(UNIMODAL)
(SEA ONLY)

- (named place of shipment)

- seller clears the goods for export and deliver and placed alongside the ship
- buyer assumes all risk from this point forward
- this term typically used for heavy-lift or bulk cargo
FORMULA: FAS = EXW + O/C
- named port of shipment
- seller is responsible for delivery of the goods loaded at the ship
- cost & risk are divided when the goods are actually on board the vessel
- seller clears the goods for export
- buyer instruct the seller the details of the vessel and the port where the goods to be
loaded
FORMULA: FOB = EXW + O/C
- named port of destination
- seller pay the cost & freight to bring the goods to the port of destination
- risk is transferred to the buyer once the goods are loaded on the vessel at the port
of shipment
- Insurance for the goods in not included
- the term is formerly known as CNF (C&F)
FORMULA: CFR = FOB + FRT
- named port of destination
- the same as CFR except that the seller covers insurance to named port of
destination
- Buyer is responsible for all costs associated with unloading the goods at the named
port of destination and clearing goods for import
- Risk passes from seller to buyer once the goods are onboard the vessel at the port of
shipment.
FORMULA: CIF = FOB + INS + FRT
Prepared By: Archer Sagang

DISCLAIMER: Photocopying this paper is at your own risk. The content

on this paper is still subject for review. May some of the information is
invalid or lacking. I may not be responsible for the misinformation that
you gathered here.
-aRx

SOURCES:
Handbook in Computation Made Simple
IncoTerms2010 ONSHIP LOGISTICS
www.export.gov
www.iccbo.org/incotermsrules

LOADING

DESTINATION

EXW

GROUP C

GROUP F

GROUP D