INCOTERMS

Incoterms (International Commercial Terms) are international rules that clarify who is responsible for transport, insurance and costs in a shipment. They form the backbone of international trade. At TOP, we ensure that your Incoterms are applied correctly, so you avoid any unpleasant surprises.

CFR - Cost and Freight

The seller pays the costs up to the port of destination. However, the risk transfers to the buyer as soon as the goods are loaded on board the vessel.

CIF - Cost, Insurance and Freight

Similar to CFR, but the seller must also arrange insurance up to the port of destination. It is a commonly used Incoterm in sea freight.

CIP - Carriage and Insurance Paid To

Similar to CPT, but the seller must also arrange insurance coverage for the transport.

CPT - Carriage Paid To

The seller pays for transport to the agreed destination. However, the risk transfers to the buyer once the goods are handed over to the carrier.

DAP - Delivered At Place

The seller arranges transport up to the buyer’s location. The buyer is responsible for import customs clearance and any import duties.

DDP - Delivered Duty Paid

The seller bears all costs, including import duties and customs clearance. For the buyer, this is the most hassle-free Incoterm — but the most demanding for the seller.

DPU - Delivered at Place Unloaded

The seller arranges transport up to the agreed place, including unloading the goods. The buyer is then responsible for customs clearance and further handling.

EXW - Ex Works

Under EXW, the buyer collects the goods from the seller’s factory or warehouse. The seller has no further responsibilities after making the goods available. Although this may seem inexpensive, it involves significant risk and costs for the buyer, such as export documentation, transport and customs formalities.

FAS - Free Alongside Ship

The seller delivers the goods alongside the ship at the port of departure. The buyer arranges the loading, sea freight and all costs thereafter.

FCA - Free Carrier

Under FCA, the seller delivers the goods to an agreed place, such as a logistics centre or airport. From that point, the buyer arranges the transport. FCA is more flexible and more balanced than EXW and is suitable for almost any mode of transport.

FOB - Free On Board

The seller delivers the goods on board the vessel at the port of departure. From that moment, the risk and costs transfer to the buyer.

ℹ️ Note!

EXW may seem inexpensive, but you often end up paying extra for transport, export formalities and local charges. Let us review your quotation beforehand.