INCOTERMS® 2020 QUICK REFERENCE
Clear explanation of International Commercial Terms defining costs, risks, and transport responsibilities between international buyers and sellers.
MULTIMODAL INCOTERMS
Applicable to containerized sea freight, air cargo, rail, and road transport.
Ex Works (named place of delivery)
The seller makes goods available at their factory or warehouse. The buyer assumes all risks and costs from loading, export clearance, carriage, and import duty.
Free Carrier (named place of delivery)
The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the seller's premises or another named terminal/CFS.
Carriage Paid To (named place of destination)
The seller pays the freight to the agreed destination. Risk transfers to the buyer as soon as the goods are handed over to the first carrier.
Carriage and Insurance Paid To (named destination)
Similar to CPT, but the seller is required to obtain comprehensive cargo insurance conforming to Institute Cargo Clauses (A) on behalf of the buyer.
Delivered at Place (named place of destination)
The seller delivers when goods are placed at the buyer's disposal on the arriving transport ready for unloading. Buyer handles import customs clearance.
Delivered Duty Paid (named place of destination)
Maximum obligation for the seller: covers all carriage, marine insurance, export/import customs clearance, tariffs, and taxes up to destination doorstep.
MARITIME-SPECIFIC INCOTERMS
Historically used for bulk, break-bulk, and non-containerized ocean shipments.
Free On Board (named port of shipment)
Seller clears goods for export and places them on board the vessel nominated by the buyer at Karachi Port / Port Qasim. Risk transfers once loaded.
Cost and Freight (named port of destination)
Seller pays ocean freight to bring goods to destination port. Risk transfers to buyer when goods are loaded on the vessel at origin.
Cost, Insurance and Freight
Seller pays freight and marine insurance (minimum Clause C coverage) to destination port. Risk transfers upon vessel loading at origin.