Ex Works
Seller makes the goods available at their own premises. From there, the buyer arranges export clearance, transport, insurance, and import duties.
Incoterms 2020
See who's responsible, term by term
Pick a rule to see how far the seller's responsibility for shipping, insurance, and duties extends before it passes to the buyer.
Seller
Buyer
Pre Carriage
Port Fees
OTHC
Sea Freight
DTHC
Port Fees
On Carriage
Seller pays
Buyer pays
Shipping
Insurance
Duties
Showing Ex Works (EXW) — The seller's minimum obligation: goods are made available at their own premises.
The Rules
All 11 Incoterms® 2020 rules
Rules for any mode of transport
Free Carrier
Seller delivers the goods, cleared for export, to a carrier or place named by the buyer. The buyer takes over from there.
Carriage Paid To
Seller pays for carriage to the named destination, but risk passes to the buyer as soon as the goods are handed to the first carrier.
Carriage and Insurance Paid To
Same as CPT, but the seller must also insure the goods to the named destination, at a high ("all risks") level of cover.
Delivered at Place
Seller bears all cost and risk of bringing the goods to the named destination, ready for unloading. Buyer handles import clearance.
Delivered at Place Unloaded
Like DAP, except the seller also takes on the cost and risk of unloading the goods at the named destination.
Delivered Duty Paid
The seller's maximum obligation. Goods arrive at the named destination cleared for import, with duties and taxes already paid.
Rules for sea and inland waterway transport
Free Alongside Ship
Seller delivers the goods alongside the vessel at the named port of shipment, cleared for export. Buyer takes over from there.
Free on Board
Seller delivers the goods on board the vessel named by the buyer. Risk transfers once the goods are loaded.
Cost and Freight
Seller pays the freight to the named port of destination, but risk passes once the goods are on board at the port of shipment.
Cost, Insurance and Freight
Same as CFR, but the seller must also insure the goods to the named port of destination, at a minimum level of cover.
Still seeing these in older contracts? DAT (Delivered at Terminal) was replaced by DPU in 2020. From Incoterms 2000: DAF, DES, DEQ, and DDU have all since been replaced by the current D-terms above.
FAQ
Got any questions?
They define who's responsible for transport, risk, insurance, and customs clearance between seller and buyer. They don't transfer ownership of the goods or set the price — that's covered by the sales contract itself.
Only if the sales contract explicitly references them — for example, "FOB Shanghai, Incoterms® 2020." They're rules both parties agree to use, not automatic law.
Yes. The 2020 update didn't cancel the 2010 rules — a contract can reference either version, as long as it states clearly which one applies.
FOB and CIF are widely used by habit, even though FCA and CIP are a technically better fit for containerized cargo — risk transfers when the container is handed to the carrier, not when it's loaded on the vessel.
No. Qubictron isn't affiliated with the International Chamber of Commerce. This page is an independent summary meant as a quick reference, not the official rules text.
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