Incoterms Guide
Who pays for freight, insurance and customs, and where does the risk pass from the supplier to you? Pick a term to see it step by step, or answer a few questions and we’ll suggest the best fit.
Who pays for what under
| Step | Paid by |
|---|
We assumed sea freight, and that the named place under CPT, CIP and D terms is your warehouse. For air freight, read airport for port.
Before you choose
- 2020
State the version and the place
Write the term, then the place, then the version in the contract, e.g. FOB Shanghai Port Incoterms 2020. The term alone doesn’t say where the seller delivers.
- 4
Four groups
E: you collect from the seller’s premises. F: you pay the main freight. C: the seller pays it, but the risk is yours from their country. D: the seller carries the risk to your country.
- !
They don’t cover everything
The terms set delivery, risk, costs and who clears the goods; ownership, payment and what happens on breach are set by the contract itself.
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