| Rule | Name | Modes | Seller arranges main transport? | Risk passes to buyer |
|---|---|---|---|---|
| EXW | Ex Works | Any | No | When goods are made available at the seller's premises |
| FCA | Free Carrier | Any | No | When goods are handed to the buyer's carrier |
| CPT | Carriage Paid To | Any | Yes | When goods are handed to the first carrier |
| CIP | Carriage and Insurance Paid To | Any | Yes, with insurance | When goods are handed to the first carrier |
| DAP | Delivered at Place | Any | Yes | At the named destination, ready for unloading |
| DPU | Delivered at Place Unloaded | Any | Yes | At the named destination, once unloaded |
| DDP | Delivered Duty Paid | Any | Yes, including import clearance and duties | At the named destination |
| FAS | Free Alongside Ship | Sea and inland waterway | No | When goods are placed alongside the vessel |
| FOB | Free on Board | Sea and inland waterway | No | When goods are loaded on board |
| CFR | Cost and Freight | Sea and inland waterway | Yes | When goods are loaded on board |
| CIF | Cost, Insurance and Freight | Sea and inland waterway | Yes, with insurance | When goods are loaded on board |
Choosing a term
- Want control of the freight?Buy on EXW, FCA or FOB and appoint your own forwarder. You decide the routing, timing and cost.
- Prefer the seller to ship?CFR, CIF, CPT and CIP put the main transport with the seller, but risk passes to you early in the journey.
- Remember who clears the goodsUnder every term except DDP, the buyer handles import clearance and duties. Requirements vary by cargo and transaction. Contact Funteg before shipping for current guidance.
Tip
Name a precise place after the rule, for example "FCA Shanghai warehouse" or "CIF Apapa". A vague place is a common source of disputes.
Regulations, permits and procedures change. This guide is general information, not legal or customs advice. Funteg confirms the exact requirements for each shipment. Published 9 October 2026.