Incoterms (Delivery Terms in International Trade) are standard trade terms used in international trade.

EXW (Ex Works): The seller is obliged to deliver the goods to the buyer at its own facility.
FCA (Free Carrier): The seller delivers the goods to the buyer at a specific location (usually on a means of transportation or at a specific facility).
FAS (Free Alongside Ship): The seller delivers the goods to the buyer at a specific point in a specific port for loading onto a ship.
FOB (Free On Board): When the seller loads the goods on board the ship, the cost and risk pass to the buyer from the point of transportation.
CFR (Cost and Freight): The seller is obliged to transport the goods to a specific port and pay the transportation fee, but the risk passes to the buyer at the point of transportation.
CIF (Cost, Insurance and Freight): The seller is obliged to transport the goods to a specific port and pay the transportation fee and insurance premium, but the risk passes to the buyer at the point of transportation.
CPT (Carriage Paid To): The seller pays the transportation charges to deliver the goods to the buyer at a specific location, but the risk passes to the buyer at the point of transportation.
CIP (Carriage and Insurance Paid To): The seller pays the carriage charges and insurance premium to deliver the goods to the buyer at a specific location, but the risk passes to the buyer at the point of transportation.
DAP (Delivered at Place): The seller delivers the goods at a specific place and covers the transportation costs of the goods, but has no responsibility for entry and importation into the buyer’s country.

These terms define the responsibilities, costs and risks between the seller and the buyer. However, before deciding which Incoterms term to use in a particular transaction, it is important that the parties reach agreement and it is specified in the sales contract.

The term EXW means “place of work”. The seller makes the goods available to the buyer at its own premises or at a specified location, and the buyer bears all costs and risks from the time the buyer receives the goods at that location.

With the term EXW, the seller is obliged to deliver the goods to the buyer at a specific point. The seller’s delivery obligation ends there and the buyer is responsible for the transportation of the goods, customs clearance and all logistics such as insurance.

When EXW is used, the seller only produces the goods, prepares them and waits at a specific point to deliver them to the buyer. In this term, the buyer bears the logistics costs such as transportation and insurance, regardless of the transportation method.

The term EXW is generally preferred in cases where the buyer needs to manage the transaction and handle the details related to logistics processes, as it carries more responsibility and risk for buyers.

In summary, the term EXW provides a basic point of agreement that the seller prepares the goods at a specific location and the buyer receives the goods from that location. In this term, all logistics such as transportation of goods, customs clearance and insurance are the responsibility of the buyer.

The term FCA means “released to a specific carrier”. The seller delivers the goods to the buyer or a specific carrier at a specified location, usually a warehouse, factory or transport vehicle. The buyer receives the goods at the specified location and then manages all logistics operations such as transportation, customs clearance and insurance.

Here are the key features of FCA:

Place of Delivery: The seller is obliged to deliver the goods to the buyer at a specified place. This place can be a specific warehouse, factory or transportation vehicle. It can also be a place determined by the buyer.
Delivery Time: The time of delivery is the moment when the seller releases the goods to the buyer at a specific place or to a specific carrier. From this point on, the buyer is responsible for all logistics such as transportation, customs clearance and insurance.
Freight Forwarding Obligation: In FCA terms, the seller is obliged to deliver the goods to the buyer or a specific carrier at a specific point. However, the transportation costs and risks are the responsibility of the buyer.
Document Delivery: The seller is obliged to provide the necessary documents (e.g. invoice, packing list, transportation documents, etc.) prior to delivery of the goods.

The term FCA provides an agreement where the seller delivers the goods to the buyer or a specific carrier at a specific point, but the buyer is responsible for logistics such as transportation and insurance of the goods. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term FAS means “released alongside the ship”. The seller delivers the goods to the buyer for loading onto the ship at a specific point in a specific port, usually at the dock of the port. The seller brings the goods alongside the ship and has no responsibility after loading on the ship, which the buyer will provide.

Here are the key features of the FAS term:

Place of Delivery: The seller is obliged to deliver the goods to the buyer alongside the ship at a specific point in a specific port. The goods are delivered in a convenient position for loading onto the ship.
Time of Delivery: The time of delivery is the moment when the seller delivers the goods to the buyer at a specific point in a specific port. The goods are left in a convenient position for loading on the ship and are released for the buyer to load the ship.
Freight Forwarding Obligation: In the FAS term, the seller delivers the goods to the buyer at a specific point in a specific port. However, all logistical operations such as loading and unloading the goods on and off the vessel are the responsibility of the buyer.
Document Delivery: The seller is obliged to provide the necessary documents (e.g. invoice, packing list, transportation documents, etc.) prior to delivery of the goods.

The term FAS provides for an agreement where the seller delivers the goods to the buyer at a specific port for loading on a ship, but the buyer is responsible for the logistics of loading and unloading the goods on and off the ship. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term FOB means “released on board ship”. In this term, the seller is obliged to load the goods on the deck of a specific ship at the designated port of loading. At the moment the goods are loaded, title and risk pass to the buyer.

Here are the key features of the term FOB:

Place of Delivery: The seller is obliged to load the goods on the deck of a specified ship at a specified port of loading. The goods are delivered in a convenient position for loading on the ship.
Time of Delivery: The time of delivery is the moment when the seller loads the goods on the deck of a particular ship at a particular port of loading. At the moment the goods are loaded, title and risk pass to the buyer.
Transportation Obligation: In FOB terms, the seller loads the goods on the deck of a particular ship at a particular port of loading. However, all logistics, such as loading and unloading the goods on and off the ship, are the responsibility of the buyer.
Document Delivery: The seller is obliged to provide the necessary documents (e.g., invoice, packing list, transportation documents, etc.) before the goods are loaded onto the ship at the port of loading.

The term FOB provides an agreement where the seller loads the goods on the deck of a specific ship at a specific port of loading, but the buyer is responsible for the logistics of loading and unloading the goods on and off the ship. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term CFR means “at cost plus freight”. The seller is obliged to load the goods on a specific vessel at a specific port at a specified freight. The seller assumes the risk and cost until the transportation of the goods is completed, but the goods are deemed to be delivered to the buyer when the transportation of the goods is completed.

Here are the key features of the term CFR:

Place of Delivery: The seller is obliged to load the goods on a specific vessel at a specified port at a specified freight rate. Once the goods are loaded on a specific ship at the specified port, the risk and title passes to the buyer.
Delivery Time: The time of delivery is the moment when the seller loads the goods on a specific ship at the specified port. Risk and title pass to the buyer when the goods are loaded on the specified ship at the specified port.
Transportation Obligation: In the CFR term, the seller loads the goods on a specified vessel at a specified port at a specified freight. The seller is responsible for any damage or loss during the transportation of the goods.
Document Delivery: The seller is obliged to provide the documents (e.g., invoice, packing list, transportation documents, etc.) required during the transportation of the goods.

The term CFR provides for an agreement whereby the seller loads the goods on a specified vessel at a specified port and assumes the cost and risk during the transportation of the goods, but the goods are deemed to be delivered to the buyer after loading on the specified vessel at the specified port. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term CIF means “together with cost, insurance and freight”. The seller is obliged to load the goods on a specific ship at a specific port at a specified freight rate and to take out transportation insurance for the goods. The seller assumes the risk and cost until the transportation of the goods is completed, but the goods are deemed to be delivered to the buyer when the transportation of the goods is completed.

Here are the key features of the term CIF:

Place of Delivery: The seller is obliged to load the goods on a specified vessel at a specified port at a specified freight. Once the goods are loaded on the specified ship at the specified port, the risk and title passes to the buyer.
Delivery Time: The time of delivery is when the seller loads the goods on the specified ship at the specified port. Risk and title pass to the buyer when the goods are loaded on the specified ship at the specified port.
Transportation Obligation: In the CIF term, the seller loads the goods on a specified vessel at a specified port at a specified freight rate and takes out transportation insurance for the goods. The seller is liable for any damage or loss during the transportation of the goods.
Document Delivery: The seller is obliged to provide the documents (e.g. invoice, packing list, transportation documents, insurance policy, etc.) required during the transportation of the goods.

The term CIF provides for an agreement where the seller loads the goods on a specified vessel at a specified port at a specified freight rate and takes out transportation insurance for the goods, but the goods are deemed to be delivered to the buyer after loading on the specified vessel at the specified port. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term CPT means “transportation cost paid”. The seller is obliged to pay for the transportation of the goods at a specific place (at the specified destination point or at the time of delivery to a specific carrier) to the specified destination. However, the seller bears the cost and risk of transportation of the goods to the destination.

Here are the key features of the CPT term:

Place of Delivery: The seller is obliged to deliver the goods at a specific place (for example, at a specific warehouse or factory) paying the cost of transportation to the specified destination point.
Time of Delivery: The time of delivery is the moment when the seller delivers the goods at the specified place by paying the transportation cost to the specified destination point.
Transportation Obligation: In CPT terms, the seller pays for the transportation of the goods from a specified place to a specified destination point. However, the seller bears the cost and risk of transportation of the goods to the destination point.
Document Delivery: The seller is obliged to provide the necessary documents (e.g. invoice, packing list, transportation documents, etc.) before paying for the transportation of the goods.

The term CPT provides an agreement whereby the seller pays for the transportation of the goods from a specific point to a specified destination point, but the seller bears the cost and risk of transportation of the goods to the destination point. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term CIP means “transportation and insurance paid for”. The seller is obliged to deliver the goods at a specified place (at the specified destination point or at the time of delivery to a specified carrier) by paying the cost of transportation to the specified destination and taking out transportation insurance for the goods. However, the seller bears the cost and risk of transportation of the goods to the destination.

Here are the main features of the term CIP:

Place of Delivery: The seller is obliged to deliver the goods at a specific place (for example, at a specific warehouse or factory) by paying the cost of transportation to the specified destination and taking out transportation insurance for the goods.
Delivery Time: The time of delivery is the moment when the seller delivers the goods at the specified place by paying the transportation cost to the specified destination point and taking out transportation insurance for the goods.
Transportation and Insurance Obligation: In the CIP term, the seller pays for the transportation of the goods from a specified place to a specified destination point and takes out transportation insurance for the goods. However, the seller bears the cost and risk of transportation of the goods to the destination.
Document Delivery: The seller is obliged to provide the necessary documents (e.g. invoice, packing list, transportation documents, insurance policy, etc.) before paying the transportation cost and insurance for the goods.

The term CIP provides an agreement whereby the seller pays for the transportation of the goods from a specified point to a specified destination point, takes out transportation insurance for the goods, and the seller bears the cost and risk of transportation of the goods to the destination point. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.

The term DAP means “delivery to the place specified”. The seller is obliged to bear the cost and risk of transportation of the goods to the specified destination. The buyer, when receiving the goods at the specified place, bears the cost and risk of transportation up to the settlement of the goods.

Here are the main features of the term DAP:

Place of Delivery: The seller is obliged to bear the cost and risk of transportation of the goods to the specified destination. This destination may be the buyer’s premises, warehouses or another designated place.
Delivery Time: The time of delivery is the time when the seller assumes the cost and risk of transporting the goods to the specified destination. Delivery is complete when the goods are delivered to the buyer at the specified destination.
Transportation Obligation: In the DAP term, the seller bears the cost and risk of transporting the goods to the specified destination. However, the buyer bears the cost and risk of transportation of the goods to the place of settlement.
Document Delivery: The seller is obliged to provide the necessary documents (e.g., invoice, packing list, transportation documents, etc.) before assuming the cost and risk of transportation of the goods to the specified destination.

The term DAP provides an agreement whereby the seller assumes the cost and risk of transportation of the goods to a specified destination, but the buyer bears the cost and risk of transportation of the goods to the destination. This term limits the seller’s control over the transportation operations and gives the buyer more responsibility and control.