Who pays for what, and where risk passes from seller to buyer.
| Incoterm | Buyer responsibility | Seller responsibility |
|---|---|---|
| EXW – Ex Works | Most responsibilities | Minimal responsibility |
| FCA – Free Carrier | Main transport, insurance | Export clearance, delivery to carrier |
| FOB – Free On Board | Ocean freight, insurance | Export clearance, load on vessel |
| CFR – Cost and Freight | Insurance, import duties | Main carriage to port |
| CIF – Cost, Insurance & Freight | Import duties | Main carriage + insurance |
| DAP – Delivered at Place | Import duties | Delivery to destination |
| DDP – Delivered Duty Paid | Minimal responsibility | All duties, delivery, customs |