EXW (Ex Works): The seller makes the goods available at their premises (e.g., factory, warehouse) and the buyer is responsible for loading, transport, and insurance.
FCA (Free Carrier): The seller delivers the goods to a named carrier (e.g., shipping company, freight forwarder) and is responsible for loading and export customs clearance. The buyer is responsible for transport, insurance, and import customs clearance.
CPT (Carriage Paid To): The seller pays for the carriage of the goods to a named destination (e.g., port, airport, inland terminal), but the buyer is responsible for insurance and import customs clearance.
CIP (Carriage and Insurance Paid To): The seller pays for the carriage and insurance of the goods to a named destination, but the buyer is responsible for import customs clearance.
CFR (Cost and Freight): The seller pays for the cost of the goods and the freight to a named destination (e.g., port, airport, inland terminal), but the buyer is responsible for insurance and import customs clearance.
CIF (Cost, Insurance, and Freight): The seller pays for the cost of the goods, the freight, and the insurance to a named destination, but the buyer is responsible for import customs clearance.
DPU (Delivered at Place Unloaded): The seller delivers the goods to a named place of destination (e.g., buyer's premises, construction site) and is responsible for unloading the goods. The buyer is responsible for import customs clearance.
DAP (Delivered at Place): The seller delivers the goods to a named place of destination (e.g., buyer's premises, construction site) and is responsible for unloading the goods. The seller also clears the goods for import.
DDP (Delivered Duty Paid): The seller delivers the goods to a named place of destination (e.g., buyer's premises, construction site) and is responsible for unloading the goods and paying import duties and taxes.
The selection of the appropriate Incoterm depends on factors such as the desired level of risk and responsibility for the transportation and insurance of the goods. It is important for both the seller and buyer to agree on the Incoterm to avoid any misunderstandings or disputes.