Incoretms 2020 Delivery and Shapes in Foreign Trade

Abbreviation	Delivery Method	Transportation Type	Place of Delivery / Transition of Risk	Cost Responsibility	Insurance	Description
EXW	Ex Works (Delivery at Workplace)	All types of transportation	Delivery at the seller's place of business; risk starts at the buyer	All costs belong to the buyer	No.	The seller has minimal liability. The buyer is fully responsible for customs and transportation.
FCA	Free Carrier (Delivery to Carrier)	All types of transportation	Risk passes upon delivery by the seller to the designated carrier	All costs after transportation belong to the buyer	No.	The seller makes the customs export and delivers it to the carrier. It is especially ideal for container transportation.
FAS	Free Alongside Ship	Seaway only	Risk passes when the goods are delivered alongside the ship	Buyer's responsibility after loading on board	No.	The seller brings the goods to the port but does not load them on board. Used for large volumes of cargo.
FOB	Free On Board (Ship Loading Delivery)	Seaway only	The risk passes when the goods are loaded on board	Buyer's responsibility after loading on board	No.	The seller does the loading and export customs clearance. It is the most widely used classical method in maritime transport.
CFR	Cost and Freight	Seaway only	The risk passes when the goods are loaded on board	Freight included; other costs at buyer's expense	No.	The seller pays the freight but transfers the risk at the time of loading.
CIF	Cost, Insurance & Freight	Seaway only	The risk passes when the goods are loaded on board	Freight and basic insurance included	Yes (minimum)	In addition to the CFR, the seller has to take out insurance. Insurance coverage is a minimum of type “C”.
CPT	Carriage Paid To (Carriage Paid To Delivery)	All types of transportation	Risk passes on delivery to the first carrier	Freight included; post-arrival costs at buyer's expense	No.	The seller pays the freight but the risk passes to the buyer on delivery to the carrier.
CIP	Carriage & Insurance Paid To	All types of transportation	Risk passes on delivery to the first carrier	Freight and level A insurance included	Yes (full scope)	Same as CPT, but here high-coverage insurance is mandatory. It is safer for the buyer.
DAP	Delivered At Place	All types of transportation	Passes at risk at the specified destination in the recipient's country	Transportation + risk included; customs excluded	No.	The seller transports the goods to the specific destination. The buyer only bears the import customs.
DPU	Delivered at Place Unloaded	All types of transportation	Risk passes at the unloading point in the recipient's country	Including unloading; excluding customs	No.	2020 is the new term (old DAT). The seller also does the unloading.
DDP	Delivered Duty Paid (Delivered Duty Paid)	All types of transportation	Risk passes on delivery to the recipient's address	All costs, taxes and risk to the seller	No.	The seller has the highest responsibility. The buyer only receives and takes no action.

Explanations and Criteria

🚚 Use by Type of Transport

For sea freight only: MOROCCO, FOB, CFR, CIF
For all modes of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP

🛡️ Insurance

Mandatory
- CIF: Minimum insurance (Coverage C)
- CIP: Extended insurance (Coverage A - Institute Cargo Clauses A)

⚠️ Risk Distribution

Earliest transfer of risk: EXW (Buyer responsible at the door)
Risk transfer at the latest: DDP (Seller assumes everything)

🔄 2020 Changes

Amendment	Description
DAT → DPU	The word “terminal” was changed to mean “any evacuated place” because it was limiting.
CIP Insurance	Sellers are now required to provide type A (comprehensive) insurance.
FCA Bill of Lading	The use of FCA instead of FOB was increased, and it became possible for the seller to receive “on-board” bills of lading.
Own transport vehicle	In terms such as FCA, DAP, DPU, DDP, it became possible for the seller to use his own means of transportation.