Seller's Responsibility: Makes goods available at their premises. Minimum obligation.
Buyer's Responsibility: All transportation costs, risks, export formalities, and insurance.
Risk Transfer: When goods are placed at buyer's disposal.
Best For: Experienced buyers who can handle all logistics.
Seller's Responsibility: Delivery to first carrier at named place, export clearance.
Buyer's Responsibility: Main carriage, insurance, import formalities.
Risk Transfer: When goods are delivered to carrier.
Best For: Containerized goods and multi-modal transport.
Seller's Responsibility: Main carriage to named destination, export clearance.
Buyer's Responsibility: Risk during transit, insurance, import formalities.
Risk Transfer: When delivered to first carrier.
Best For: When seller arranges main carriage but buyer handles risk.
Seller's Responsibility: Main carriage, minimum insurance, export clearance.
Buyer's Responsibility: Risk during transit, import formalities.
Risk Transfer: When delivered to first carrier.
Best For: Similar to CPT but with basic insurance included.
Seller's Responsibility: All costs and risks until goods arrive at named destination.
Buyer's Responsibility: Unloading, import clearance, duties.
Risk Transfer: When goods are available for unloading at destination.
Best For: When seller delivers to buyer's premises but buyer unloads.
Seller's Responsibility: All costs, risks, and unloading at named destination.
Buyer's Responsibility: Import clearance, duties, further transportation.
Risk Transfer: When goods are unloaded and made available.
Best For: Maximum seller responsibility without import clearance.
Seller's Responsibility: All costs, risks, import clearance, duties, and taxes.
Buyer's Responsibility: Unloading at destination (unless included).
Risk Transfer: When goods are available for unloading.
Best For: Maximum seller responsibility including all import formalities.
Seller's Responsibility: Delivery alongside vessel at named port, export clearance.
Buyer's Responsibility: Loading, main carriage, insurance, all subsequent costs.
Risk Transfer: When goods are placed alongside the vessel.
Best For: Bulk cargo where buyer arranges loading.
Seller's Responsibility: Goods loaded on board vessel, export clearance.
Buyer's Responsibility: Sea freight, insurance, import formalities.
Risk Transfer: When goods pass ship's rail at loading port.
Best For: Traditional maritime trade, containerized goods.
Seller's Responsibility: Main carriage to named port, export clearance.
Buyer's Responsibility: Risk during transit, insurance, import formalities.
Risk Transfer: When goods pass ship's rail at loading port.
Best For: When seller arranges sea freight but buyer handles risk.
Seller's Responsibility: Main carriage, minimum insurance, export clearance.
Buyer's Responsibility: Risk during transit, import formalities.
Risk Transfer: When goods pass ship's rail at loading port.
Best For: Similar to CFR but with basic marine insurance included.
Seller handles export clearance in: FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF
Buyer handles export clearance in: EXW
Always verify local regulations as some countries require seller to handle export formalities regardless of INCO term.
Seller arranges main carriage in: CPT, CIP, CFR, CIF, DAP, DPU, DDP
Buyer arranges main carriage in: EXW, FCA, FAS, FOB
The party arranging main carriage typically bears the cost unless otherwise negotiated.
Seller provides insurance in: CIP, CIF
Buyer arranges insurance in: All other terms
Note: Even when seller provides insurance (CIP/CIF), it's typically minimum coverage. Buyers often purchase additional insurance.
Seller handles import clearance in: DDP only
Buyer handles import clearance in: All other terms
DDP represents maximum seller obligation, including payment of all import duties and taxes.
Consider these factors:
Avoid these common errors:
Contact our experts when:
Our team can help you select the most appropriate INCO term for your specific needs and ensure smooth international transactions.
