| Incoterm | Delivery | Transfer of risk point | Division of costs between Seller and Buyer |
| EXW Ex Works |
Seller makes goods available for buyer to collect | At Seller’s Premises Door | Subject to the provisions of A6, (Seller’s Responsibility for costs), buyer pays all costs from seller’s warehouse onwards, including cost of loading goods at seller’s warehouse or factory. |
| FCA Free Carrier |
Seller delivers to Carrier and clears through customs | (1) At Seller’s Premises – loaded on to truck. (2) At forwarders depot -not unloaded from truck |
Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays all costs until delivered to Carrier, plus costs of export customs clearance and other charges payable upon exportation. |
| FAS Free alongside ship.. at named port of shipment |
Seller delivers to wharf and arranges export clearance. Buyer arranges carriage. | Alongside departing vessel | Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays to deliver goods to wharf, plus the costs of export clearance. Buyer pays all cost from that point. |
| FOB Free On Board… at named port of shipment |
Seller delivers on board vessel at named port | As the goods pass over the ship’s rail at the port of shipment | Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays all costs to place goods on board vessel at port of shipment, including export clearance and other charges payable upon exportation. |
| CFR Cost and Freight… to named port of destination |
Seller delivers on board vessel and arranges carriage. | As the goods pass over the ship’s rail at the port of shipment | Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays all costs to place goods on board vessel at port of shipment, including export clearance and other charges payable upon exportation, plus the cost of overseas freight to the port of destination. |
| CFR (Landed) Cost and Freight… to named port of destination |
Seller delivers on board vessel and arranges carriage. | As the goods pass over the ship’s rail at the port of shipment | Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays all costs to place goods on board vessel at port of shipment, including export clearance and other charges payable upon exportation, plus the cost of overseas freight to port of destination, and unloading charges at the port of destination when these costs are billed by shipping lines as a usual part of the contract of carriage. |
| CIF Cost, insurance and freight… to named port of destination |
Seller delivers on board vessel, arranges carriage and insurance. | As the goods pass over the ship’s rail at the port of shipment | Subject to the provisions of B6, (Buyer’s Responsibility for costs), seller pays all costs to place goods on board vessel at port of shipment, including export clearance and other charges payable upon exportation, plus the cost of overseas freight to the port of destination. Must also arrange and pay for the insurance of the cargo, but only on minimum terms. |