Incoterms basics

Incoterms define who pays for transport, insurance, and where risk transfers. This page is educational only — not legal advice.

• EXW

  Buyer arranges pickup from seller’s premises; minimal seller duty.

• FOB

  Seller delivers goods on board vessel at named port of shipment.

• CFR

  Seller pays cost & freight to named port; risk transfers on board.

• CIF

  Like CFR plus seller buys marine insurance for the buyer.

• DAP

  Seller delivers ready for unloading at named place.

• DDP

  Seller delivers cleared for import, duties paid — maximum seller duty.