INCOTERMS 2010 - Terms for Any Transport Mode - EXW to DDP - delivery responsibility and risk allocation

Sep 17, 2026

Uploaded by Theodora

INCOTERMS 2010 organizes international trade delivery terms into two categories: rules applicable to any transport mode and maritime-only terms. For each term, the document explains when delivery is deemed complete, which party arranges and pays for carriage, loading, unloading, and customs clearance, and where risk transfers from seller to buyer. It covers EXW, FCA, CPT, CIP, DAT, DAP, and DDP, then explains FAS, FOB, CFR, and CIF, including insurance obligations where specified.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

Terms for Any Transport Mode

EXW - EX WORKS

FCA - FREE CARRIER

CPT - CARRIAGE PAID TO

CIP - CARRIAGE AND INSURANCE PAID TO

DAT - DELIVERED AT TERMINAL

DAP - DELIVERED AT PLACE

DDP - DELIVERED DUTY PAID

Maritime Only Terms

FAS - FREE ALONGSIDE SHIP

FOB - FREE ON BOARD

CFR - COST AND FREIGHT

CIF - COST INSURANCE AND FREIGHT

INCOTERMS 2010 INCOTERMS 2010 are grouped into two classes: 1. TERMS FOR ANY TRANSPORT MODE 2. MARITIME ONLY TERMS 1. Terms for any Transport Mode • EXW – EX WORKS (… named place of delivery) The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination. • FCA – FREE CARRIER (… named place of delivery) The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination. • CPT – CARRIAGE PAID TO (… named place of destination) The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. • CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination) The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance. • DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination) The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer’s disposal at a named terminal at the named port or place of destination.“Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them atthe terminal at the named port or place of destination. • DAP – DELIVERED AT PLACE (… named place of destination) The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place. • DDP – DELIVERED DUTY PAID (… named place) The Seller delivers the goods-cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, includingthe payment of Customs duties and taxes. 2. Maritime only Terms • FAS – FREE ALONGSIDE SHIP (… named port of shipment) The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage. • FOB – FREE ON BOARD (… named port of shipment) The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage. • CFR – COST AND FREIGHT (… named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage. • CIF – COST INSURANCE AND FREIGHT (… named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.>

FAQs

How are Incoterms 2010 divided in the document?

The document groups Incoterms 2010 into two classes: terms for any transport mode and maritime-only terms.

When does the buyer typically bear the costs and risks under EXW?

Under EXW, the seller’s responsibility is to make the goods available at the seller’s premises, while the buyer bears the full costs and risks of moving the goods to the destination.

Which maritime term includes seller-arranged insurance, and what is the buyer’s risk position?

CIF includes insurance: the seller pays for moving the goods to the destination port and purchases cargo insurance, while the buyer bears the risks of loss or damage.

Sep 17, 2026

Uploaded by Theodora