Ex Works
Seller makes the goods available at the named place. Buyer assumes nearly all pickup, carriage, export and import activity.
International commercial terms
A practical overview of the eleven Incoterms® 2020 rules.
Use the correct three-letter rule, named place or port, and edition year in the sales contract. The official ICC rules control.
Rules for any mode
Seven rules can be used across one or more transport modes.
These rules can apply to road, rail, air, ocean, parcel, multimodal or combined movements when used correctly in the sales contract.
Free Carrier
Seller delivers the goods to the buyer’s nominated carrier or party at the named place and completes export clearance.
Carriage Paid To
Seller pays carriage to the named destination. Risk transfers when the goods are handed to the first carrier.
Carriage and Insurance Paid To
CPT structure with seller-arranged cargo insurance meeting the rule’s stated coverage requirement.
Delivered at Place
Seller delivers at the named destination ready for unloading. Buyer unloads and handles import clearance and duties.
Delivered at Place Unloaded
Seller delivers and unloads at the named place. Buyer handles import clearance, duties and taxes.
Delivered Duty Paid
Seller delivers ready for unloading and handles export and import clearance, duties and taxes, where legally able to do so.
Sea and inland waterway only
Four rules are intended for port-to-port water transport.
These rules use vessel-side or on-board delivery points and should not be applied casually to containerized multimodal movements.
Free Alongside Ship
Seller places the goods alongside the nominated vessel at the named port of shipment. Risk transfers there.
Free on Board
Seller places the goods on board the vessel at the named port of shipment. Risk transfers on board.
Cost and Freight
Seller pays ocean carriage to the named destination port, while risk transfers when the goods are on board at origin.
Cost, Insurance and Freight
CFR structure with seller-arranged marine cargo insurance at the coverage level required by the rule.
Use the official rule
Always include the named place or port and “Incoterms® 2020.”
This overview is not the rule text and does not replace legal, customs, tax, insurance or trade advice.