The seller makes the goods available at their own premises and does nothing further. Everything after that point - loading, export formalities, carriage and import - is the buyer's problem. It places the least obligation on the seller of any term.

At the seller's premises, before loading

Seller does

Have the goods packed, marked and available at the named place on the agreed date. Give the buyer whatever help they ask for with export formalities, at the buyer's cost and risk.

Buyer does

Load the goods, clear them for export, arrange and pay for all carriage and insurance, and clear them for import.

Costs pass at

At the seller's premises, before loading

Risk passes at

At the seller's premises, before loading

Insurance

Neither party is obliged to insure

Export clearance

Buyer

Import clearance

Buyer

In practice

Common for domestic sales and ex-factory quotes. Awkward for exports, because the buyer often cannot legally file the export declaration in the seller's country.

The seller clears the goods for export and hands them to a carrier the buyer has nominated, at an agreed place. If that place is the seller's premises, the seller loads; if it is anywhere else, the goods are delivered ready for unloading.

On delivery to the nominated carrier

Seller does

Pack, mark, clear for export and deliver to the nominated carrier at the named place.

Buyer does

Nominate the carrier, pay the main carriage, insure if wanted, and handle import clearance.

Costs pass at

On delivery to the nominated carrier

Risk passes at

On delivery to the nominated carrier

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

The workhorse term for containerised and multimodal shipments, and the sensible replacement for FOB when cargo moves in containers.

The seller pays for carriage to the named destination, but risk passes much earlier - when the goods are handed to the first carrier. Buyers often misread this: paid-to and at-risk-to are different places.

On handover to the first carrier

Seller does

Clear for export, contract and pay for carriage to the named destination.

Buyer does

Bear risk from the first carrier onwards, insure if wanted, handle import clearance and any destination charges not in the seller's contract.

Costs pass at

At the named destination

Risk passes at

On handover to the first carrier

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Used where the seller wants to control routing and quote a door-to-port price without taking insurance risk.

As CPT, with the seller additionally required to insure the cargo. Under the 2020 edition the seller must take out wide-cover insurance unless the parties agree otherwise.

On handover to the first carrier

Seller does

Clear for export, pay carriage to the named destination, and provide cargo insurance for the buyer's benefit.

Buyer does

Bear risk from the first carrier onwards, handle import clearance and destination costs outside the seller's contract.

Costs pass at

At the named destination

Risk passes at

On handover to the first carrier

Insurance

Seller, at the wider level of cover

Export clearance

Seller

Import clearance

Buyer

In practice

Common where a buyer wants the seller to arrange everything to destination including insurance, but risk still sits with the buyer in transit.

The seller carries the goods all the way to the named place and keeps the risk until they arrive, ready for unloading. Unloading and import clearance are the buyer's.

At the named place, before unloading

Seller does

Deliver to the named place, ready for unloading, bearing all risk and cost until then.

Buyer does

Unload, clear for import and pay duties and taxes.

Costs pass at

At the named place, before unloading

Risk passes at

At the named place, before unloading

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Widely used for door deliveries where the buyer prefers to handle their own customs entry.

The only term where the seller must unload. The seller carries the goods to the named place, unloads them, and only then does risk pass. Replaced the old DAT in the 2020 edition.

At the named place, after unloading

Seller does

Deliver to the named place and unload, bearing all risk and cost until unloading is complete.

Buyer does

Clear for import and pay duties and taxes.

Costs pass at

At the named place, after unloading

Risk passes at

At the named place, after unloading

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Suits terminal, CFS and warehouse deliveries where the seller controls the handling equipment.

The seller does everything, including import clearance and duty. It places the most obligation on the seller of any term, and should not be agreed lightly - the seller may not be able to register for tax or file entries in the destination country.

At the named place, before unloading

Seller does

Deliver to the named place, cleared for import, with duties and taxes paid.

Buyer does

Unload and take delivery.

Costs pass at

At the named place, before unloading

Risk passes at

At the named place, before unloading

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Seller

In practice

Attractive to buyers as a landed price. Risky for sellers unless they have a reliable customs agent and a way to recover import taxes.

The seller delivers by placing the goods alongside the vessel at the named port - on the quay or in a lighter. Loading aboard is the buyer's.

Alongside the vessel

Seller does

Clear for export and place the goods alongside the nominated vessel.

Buyer does

Load, pay ocean freight, insure if wanted and clear for import.

Costs pass at

Alongside the vessel

Risk passes at

Alongside the vessel

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Used for bulk and breakbulk cargo. Not appropriate for containers, which are handed over at a terminal rather than alongside.

The seller delivers when the goods are on board the vessel at the named port. From that moment the buyer carries the risk and pays the freight.

On board the vessel

Seller does

Clear for export and place the goods on board the nominated vessel.

Buyer does

Pay ocean freight, insure if wanted, and clear for import.

Costs pass at

On board the vessel

Risk passes at

On board the vessel

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Still the most quoted term in the trade, though for containers FCA usually reflects what actually happens, since the box leaves the seller's control at the terminal, not at the ship's rail.

The seller pays the ocean freight to the named destination port, but risk passes once the goods are on board at origin. Paid-to and at-risk-to are different places.

On board the vessel at origin

Seller does

Clear for export, load on board and pay freight to the destination port.

Buyer does

Bear risk from loading onwards, insure if wanted, and handle import and destination charges.

Costs pass at

At the destination port

Risk passes at

On board the vessel at origin

Insurance

Neither party is obliged to insure

Export clearance

Seller

Import clearance

Buyer

In practice

Common for bulk and breakbulk where the seller books the vessel. For containers, CPT is the cleaner equivalent.

As CFR, with the seller also required to insure. Under the 2020 edition the minimum cover for CIF remains the narrower level, unlike CIP.

On board the vessel at origin

Seller does

Clear for export, load on board, pay freight to the destination port and provide cargo insurance for the buyer.

Buyer does

Bear risk from loading onwards, handle import clearance and destination charges.

Costs pass at

At the destination port

Risk passes at

On board the vessel at origin

Insurance

Seller, at the minimum level of cover unless agreed otherwise

Export clearance

Seller

Import clearance

Buyer

In practice

The classic letter-of-credit term for bulk and breakbulk. Buyers should check the cover level, which is narrower than most expect.