INCO Terms Chart

The following chart was created by the Ohio Export Assistance Network. It shows which of the parties is responsible for what functions under the different INCOTERM designations. An X indicates that the seller is responsible for that function; a minus sign (-) indicates that the buyer is responsible; N indicates that the responsibility is negotiable. If you are unfamiliar (or unsure) about the meaning of the INCOTERMs, a glossary is provided.

Glossary

EXW

Ex Works at a named point of origin (e.g., ex factory, ex mill, ex warehouse). Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the period fixed. All other charges are for the account of the buyer.

FCA

Free Carrier, to a named place. This term replaces the former "FOB named inland port" to designate the seller's responsibility for the cost of loading goods at the named shipping point. It may be used for multimode transport, container stations, and any mode of transport, including air. The seller is responsible for loading goods into the means of transportation; the buyer is responsible for all subsequent expenses. If a port of exportation is named, the costs of transporting the goods to the named port are included in the price.

FAS

Free Alongside Ship, at a named U.S. port of export. Under this term, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port. The seller handles the cost of unloading and warfare; loading, ocean transportation, and insurance costs are left to the buyer.

FOB

Free on Board, at a named port of export. The seller quotes the buyer a price that covers all costs up to and including delivery of goods aboard an overseas vessel.

CFR

Cost and Freight, to a named overseas port of import. Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The cost of insurance is left to the buyer's account. (Typically used for ocean shipments only.)

CIF

Cost, Insurance, and Freight, to a named overseas port of import. Under this term, the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation from the vessel. (Typically used for ocean shipments only.)

CPT

Carriage Paid To

CIP

Carriage and Insurance Paid to a named place of destination. Used in place of CFR and CIF, respectively, for shipment by modes other than water.

DAF

Delivered at Frontier, at a named place. -- The seller fulfils his obligation when the goods have been made available, cleared for export, at the named point at the frontier, but before the customs border of the adjoining country. Primarily intended for rail and road transport.

DES

Delivered Ex Ship, at a named port -- the seller fulfils her obligation when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. Only used for sea or inland waterway transport.

DEQ

Delivered Ex Quay (Duty Paid), at a named port -- the seller fulfils his obligation when the goods have been made available to the buyer on the wharf at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes, and other charges of delivering the goods to the quay. The seller is obligated to obtain the import license, either directly or indirectly. Only used for sea or inland waterway transport.

DDU

Delivered Duty Unpaid -- only the transportation customs duty and taxes are paid by the consignee.

DDP