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Foreign trade terms quick lookup table: FOB/CIF/DDP and other 12 kinds of terms comparison

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2025-09-08 09:47:47
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Incoterms® Quick Reference Guide

Abbreviation	Full Name	Applicable Transport Mode	Main Seller's Obligation	Risk Transfer Point	Freight/Insurance
EXW	Ex Works	All modes of transport	Make goods available at the seller's premises	At the seller's premises	Buyer's responsibility
FCA	Free Carrier	All modes of transport	Deliver goods to a carrier at a named place	At the named place	Buyer's responsibility
CPT	Carriage Paid To	All modes of transport	Pay for carriage of goods to the named destination	When goods are handed over to the carrier	Freight paid by seller, insurance by buyer
CIP	Carriage and Insurance Paid to	All modes of transport	Pay for carriage and insurance to the named destination	When goods are handed over to the carrier	Freight and insurance paid by seller
DAP	Delivered at Place	All modes of transport	Deliver goods at the named destination, ready for unloading	At the named destination	Seller's responsibility
DPU	Delivered at Place Unloaded	All modes of transport	Unload and deliver goods at the named destination	At the named destination	Seller's responsibility
DDP	Delivered Duty Paid	All modes of transport	Deliver goods at the named destination and pay all costs (including duties, taxes)	At the named destination	All costs are the seller's responsibility
FAS	Free Alongside Ship	Sea and inland waterway transport	Place goods alongside the vessel at the named port of shipment	Alongside the vessel	Buyer's responsibility
FOB	Free On Board	Sea and inland waterway transport	Load goods on board the vessel at the named port of shipment	On board the vessel	Buyer's responsibility
CFR	Cost and Freight	Sea and inland waterway transport	Pay for freight to the named port of destination	On board the vessel	Freight paid by seller, insurance by buyer
CIF	Cost, Insurance and Freight	Sea and inland waterway transport	Pay for freight and insurance to the named port of destination	On board the vessel	Freight and insurance paid by seller

Understanding These Terms

These terms define the responsibilities of the buyer and seller based on three core questions:

Risk Transfer: At what point does the responsibility for loss or damage to the goods shift from the seller to the buyer?
Cost/Insurance: Who is responsible for paying the costs of transportation and insurance from origin to destination?
Main Obligations: Who is responsible for handling export and import clearance, loading, and unloading?

Key Terms Explained

FOB (Free On Board):

Applicable: Primarily for sea transport.
Key Feature: The seller is responsible for delivering the goods to the named port and loading them on board the vessel. The risk and costs transfer to the buyer the moment the goods pass the ship's rail. This is one of the most common terms for sea shipments.

CIF (Cost, Insurance and Freight):

Applicable: Primarily for sea transport.
Key Feature: The seller pays for the freight and minimum insurance coverage to the destination port. However, the risk transfers to the buyer once the goods are on board the vessel. This means if the goods are damaged during the sea voyage, the buyer must file a claim with the insurance company.

DDP (Delivered Duty Paid):

Applicable: All modes of transport.
Key Feature: This term places the maximum responsibility on the seller. The seller is responsible for delivering the goods to the buyer's specified destination and covering all costs, including import clearance, duties, and taxes. The buyer has almost no responsibility.

Hopefully, this guide helps you better understand these international trade terms.