Eleven standard trade terms (2020 edition) that say who pays for what and when risk passes.
Common ones are EXW, FCA, FOB, CIF, DAP and DDP. Always name the place, e.g. “FOB Nhava Sheva, Incoterms 2020”.
Related terms
- FOB — Free On Board: the seller loads the goods on the ship; the buyer pays freight and insurance.
- CIF — Cost, Insurance and Freight: the seller pays freight and insurance to the destination port.
- DDP — Delivered Duty Paid: the seller delivers to the buyer and pays import duty and taxes.