Simply understanding Incoterms（International Commercial Terms）2020 | Shipping Terms

EXW (Ex Works): The seller makes the goods available at their premises or another named place. The buyer is responsible for all transportation costs, customs clearance, and risks from that point onwards.

FCA (Free Carrier): The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The buyer bears all risks and costs from that point.

FAS (Free Alongside Ship): The seller delivers the goods to the dock next to the vessel nominated by the buyer at the named port of shipment. The buyer bears all costs and risks from that point.

FOB (Free On Board): The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The buyer bears all costs and risks from that point.

CFR (Cost and Freight): The seller pays for the carriage of goods to the named port of destination. Risk transfers to the buyer once the goods have been loaded on board the ship.

DPU (Delivered at Place Unloaded): The seller delivers the goods, unloaded, at the named place. The seller bears all risks and costs associated with transporting the goods to that location.

DAP (Delivered at Place): The seller delivers the goods to the buyer at the named place of destination. The seller bears all risks and costs associated with transporting the goods to that location, except for unloading costs.

DDP (Delivered Duty Paid): The seller delivers the goods to the buyer, cleared for import, at the named place of destination. The seller bears all risks and costs associated with transporting the goods until they are delivered to the buyer, including import duties and taxes.

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