Incoterms 2020 Reference

Home / Incoterms Reference

International Commercial Terms Guide

A quick matrix defining boundaries for risk, costs, and transport liability between Buyers and Sellers.

Term Full Description Allowed Transport Mode Risk Transfer Boundary Export Clearance Import Clearance
EXW Ex Works Any Mode Buyer (At Seller's Facility) Buyer Buyer
FCA Free Carrier Any Mode Buyer (At Named Carrier Point) Seller Buyer
FAS Free Alongside Ship Sea / Waterways Only Buyer (Alongside Vessel Port) Seller Buyer
FOB Free On Board Sea / Waterways Only Buyer (Onboard Vessel Port) Seller Buyer
CFR Cost and Freight Sea / Waterways Only Buyer (Onboard Vessel Port) Seller Buyer
CIF Cost, Insurance & Freight Sea / Waterways Only Buyer (Onboard Vessel Port) Seller Buyer
CPT Carriage Paid To Any Mode Buyer (At Named Carrier Point) Seller Buyer
CIP Carriage & Insurance Paid To Any Mode Buyer (At Named Carrier Point) Seller Buyer
DAP Delivered At Place Any Mode Seller (Ready for Unloading) Seller Buyer
DPU Delivered at Place Unloaded Any Mode Seller (Unloaded at Destination) Seller Buyer
DDP Delivered Duty Paid Any Mode Seller (At Destination Facility) Seller Seller

Important Logistics Note

Incoterms define transaction dynamics, directing who arranges insurance, pays port terminals, handles customs documents, and takes responsibility at specific routing points. When initiating shipments with AGL, ensure your purchase contracts clearly indicate the chosen Incoterms category to coordinate transport billing.

Visual Guide to Incoterms 2020

Understand the critical boundaries of risk, cost, and liability through our comprehensive visual diagrams.

11 Incoterms Guide

Sea Transport Terms

Any Mode Terms

Detailed Terms Explanations

Deep dive into the specific responsibilities governing international transport.

EXW Ex Works

The seller fulfills delivery obligation by keeping the goods at its workplace (factory, storehouse, etc.) for the purchaser. Unless otherwise agreed, the seller is not responsible for loading the goods to a vehicle provided by the purchaser or for clearing the goods through export customs. This type of sale comprises the least liability for the seller.

FCA Free Carrier

The seller is considered to have fulfilled its liability of delivery once the goods reach the ship’s rail at the prescribed port of loading. From then on, the buyer undertakes any expense, loss, damage, or risks about the goods. In this type of delivery, the delivery liability of the seller ends once the goods are cleared through export customs.

FAS Free Alongside Ship

“Free Alongside Ship” means the seller delivers the goods when they are placed alongside a ship at the prescribed port of loading. As of then, the buyer undertakes any expenses, damages, or losses, as well as relevant risks about the goods. FAS requires customs clearance of goods by the seller for exportation.

DAP Delivered At Place

Signifies that the seller delivers the goods to the disposal of the buyer once the vehicle arrives at the prescribed destination and without unloading them. DAP means the goods are left to the disposal of the buyer at the transport vehicle at the unloading location (a port quay, customs point, airport) and are ready for unloading.

DDP Delivered Duty Paid

The delivery responsibility of the seller ends once the goods are rendered disposable at the prescribed location in the importing country. The seller has to undertake any risks and expenses with respect to the carriage of goods to such location and to fulfillment of necessary customs procedures (except for taxes, levies, and duties payable for import).