Global Trade Rules

INCOTERMS 2026

Incoterms define the reciprocal obligations of seller and buyer in an international purchase/sale contract.

Rules for Any Mode or Modes of Transport
EXW
EX WORKS
Named place of delivery
EXW Transfer of Risk and Cost Diagram
Seller's Obligations
  • Provide goods according to contract and deliver goods at his premises
  • Assist buyer to obtain necessary export license
Buyer's Obligations
  • Take delivery at seller's premises
  • Arrange transport from premises
  • Obtain licenses and export/import permits
  • Bear risk of loss and damage after delivery
FCA
FREE CARRIER
Named place of delivery
FCA Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver the goods to the carrier agreed
  • Pay all costs until delivery
  • Comply with export licenses and customs formalities
Buyer's Obligations
  • Accept delivery of the goods
  • Arrange for carriage of goods
  • Pay all costs after delivery
  • Comply with import licenses and customs formalities
CPT
CARRIAGE PAID TO
Named place of destination
CPT Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver goods to first carrier
  • Pay cost of delivery to agreed point and make the contract of carriage
  • Bear risk of loss and damage until delivery
  • Assist buyer to obtain necessary export license
Buyer's Obligations
  • Take delivery at named point
  • Bear risk of loss or damage after delivery to first carrier
  • Obtain licenses and official permission for import
  • Pay all costs after delivery including duties and taxes
CIP
CARRIAGE AND INSURANCE PAID TO
Named place of destination
CIP Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver goods to first carrier
  • Pay cost of delivery to agreed point and make the contract of carriage
  • Bear risk of loss and damage until delivery to first carrier
  • Obtain necessary export license
  • Provide insurance cargo Clauses A and pay for it
Buyer's Obligations
  • Take delivery at named port
  • Bear risk of loss and damage after delivery
  • Obtain license and official permission for export / import
  • Pay all costs after delivery including duties and taxes
DAP
DELIVERED AT PLACE
Named place of destination
DAP Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver the goods not unloaded at the agreed point and time
  • Pay all cost of main carriage and loading at place of origin
  • Bear risks of loss and damage until goods are available as agreed
  • Obtain necessary export licenses or local authorizations for exporting goods
Buyer's Obligations
  • Take the delivery at agreed place of destination
  • Obtain the import permit for the export of goods
DPU
DELIVERED AT PLACE UNLOADED
Named place of destination
DPU Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver the goods unloaded at the agreed point and time
  • Pay all cost of main carriage, loading at place of origin, unloading at place of destination
  • Bear risk of loss and damage until goods are available as agreed
  • Obtain necessary export licence
Buyer's Obligations
  • Take delivery of the goods at place of destination
  • Pay for all cost relating since goods are available, import customs, duties and taxes
DDP
DELIVERED DUTY PAID
Named place of destination
DDP Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver the goods at final point agreed
  • Bear the transport costs to the agreed place of destination
  • Provide export licenses or local authorizations for export and import
  • Arrange and pay for the carriage of the goods
  • Bear risks of loss and damage until final delivery
Buyer's Obligations
  • Take delivery once the goods are available
Rules for Sea and Inland Waterway Transport
FAS
FREE ALONGSIDE SHIP
Named port of shipment
FAS Transfer of Risk and Cost Diagram
Seller's Obligations
  • Provide goods according to contact and deliver them alongside named vessel at named port
  • Pay all costs until delivery alongside ship
  • Obtain necessary export licence
Buyer's Obligations
  • Take delivery alongside ship
  • Pay all cost after delivery alongside ship
  • Arrange for shipment at own expense
  • Obtain licences and official permission for export/import
FOB
FREE ON BOARD
Named port of shipment
FOB Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver goods on board named vessel at named port
  • Pay all costs until delivery on ship
  • Bear risk of loss and damage until time of delivery on ship
  • Assist buyer to obtain necessary export licence
Buyer's Obligations
  • Take delivery at named port
  • Give seller adequate notice of ship and port of loading
  • Arrange for shipment at own expense
  • Bear risk of loss and damage after delivery
  • Obtain licenses and official permission for export/import
CFR
COST AND FREIGHT
Named port of destination
CFR Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver goods on board named vessel at named port
  • Pay all costs until delivery at port of destination
  • Bear risk of loss and damage until delivery on board of ship
  • Assist buyer to obtain necessary export licence
Buyer's Obligations
  • Take delivery at named port
  • Arrange delivery at his own expenses at agreed destination
  • Bear risk of loss and damage after delivery
  • Obtain licenses and official permision for import
CIF
COST, INSURANCE AND FREIGHT
Named port of destination
CIF Transfer of Risk and Cost Diagram
Seller's Obligations
  • Deliver goods on board named vessel at named port
  • Pay all costs until delivery at port of destination
  • Obtain necessary export licence
  • Provide insurance minimum cargo Clauses C
Buyer's Obligations
  • Take delivery at named port
  • Pay all costs after delivery including duties and taxes, and post-shipment
  • Bear the risk of loss and damage after delivery at port of shipment
  • Obtain any import licence
  • Arrange at own expenses for shipment of goods to named port
  • Arrange insurance of goods