Incoterms, explained
without the jargon.

Ex Works

EXW (Ex Works) is the Incoterm where the seller's only obligation is to make the goods available at their own premises. The buyer takes on virtually all cost and risk — loading, export clearance, freight, and import — making it the maximum-responsibility term for the buyer.

Free Carrier

FCA (Free Carrier) is the Incoterm where the seller delivers the goods, cleared for export, to a carrier or place nominated by the buyer. Risk transfers at that handover, after which the buyer bears the main carriage. It works for any mode and is the modern, flexible alternative to FOB and EXW.

Free On Board

FOB (Free On Board) is a sea-freight Incoterm where the seller delivers the goods on board the vessel at the named port of shipment, cleared for export. Risk passes once the goods are on board; from there the buyer pays the main freight, insurance, and import costs.

Cost, Insurance and Freight

CIF (Cost, Insurance and Freight) is a sea-freight Incoterm where the seller pays the cost of goods, marine insurance, and freight to the named destination port. Crucially, risk still transfers to the buyer at loading — so the seller pays freight, but the buyer bears the risk in transit.

Delivered Duty Paid

DDP (Delivered Duty Paid) is the Incoterm with maximum seller responsibility. The seller delivers the goods to the named place in the buyer's country, cleared for import, with all costs and duties paid. The buyer simply receives the goods — making it the buyer-friendliest term.