The 11 delivery terms that define where cost and risk pass from seller to buyer.
The seller makes the goods available at its own premises. Loading, export clearance and all transport are the buyer’s responsibility.
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the agreed place.
The seller pays the carriage to the named destination, while the risk passes to the buyer when the goods are handed to the first carrier.
As CPT, plus the seller buys all-risks cargo insurance (ICC A) up to the named destination.
The seller brings the goods to the named destination, ready for unloading. Import clearance and duties are the buyer’s.
The seller brings the goods to the named destination and unloads them. It is the only rule where the seller handles unloading.
The seller bears every cost and risk up to the destination, including import clearance and duties.
The seller places the goods alongside the buyer’s vessel at the port of shipment. Mostly used for bulk and heavy cargo.
The seller loads the goods on board the buyer’s vessel at the port of shipment. The buyer pays the freight and marine insurance.
The seller pays the freight to the port of destination, but the risk passes to the buyer once the goods are on board at the port of shipment.
As CFR, plus the seller buys cargo insurance with minimum cover (ICC C) up to the port of destination.
This page is a general summary of the Incoterms 2020 rules. Always rely on the official text of the International Chamber of Commerce (ICC) in your contracts.
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