Incoterms (International Commercial Terms) are standardised trade terms published by the International Chamber of Commerce (ICC). They define who bears the costs and risks in international shipment of goods.
What are Incoterms?
Incoterms 2020 contains 11 delivery terms in two groups. Each abbreviation clearly defines where risk transfers from seller to buyer, and who pays for transport, insurance and customs clearance.
Incoterms 2020 Overview
| Term | Full Name | Who Pays Transport | Risk Transfer |
|---|---|---|---|
| EXW | Ex Works | Buyer | Seller's warehouse |
| FCA | Free Carrier | Buyer | At first carrier |
| CPT | Carriage Paid To | Seller | At first carrier |
| CIP | Carriage and Insurance Paid | Seller | At first carrier |
| DAP | Delivered at Place | Seller | Named destination |
| DPU | Delivered at Place Unloaded | Seller | After unloading |
| DDP | Delivered Duty Paid | Seller | Destination, duty paid |
Most Common Terms in Road Transport
EXW — Ex Works
The seller only makes the goods available at their premises. All costs — loading, transport, customs, insurance — are borne by the buyer. Convenient for the seller, demanding for the buyer.
DAP — Delivered at Place
The seller delivers to the agreed place in the buyer's country, paying for transport and bearing risk to the named destination. The buyer handles customs clearance and unloading. The most common choice for EU trade.
DDP — Delivered Duty Paid
The seller handles everything: transport, customs, taxes and unloading. Most convenient for the buyer, but the seller needs knowledge of customs rules in the destination country.
FCA — Free Carrier
The seller delivers to the first carrier named by the buyer. Risk transfers at the moment of handover. A flexible term suitable for both container and road transport.
Incoterms and Cargo Insurance
Only CIF and CIP require the seller to arrange cargo insurance. Under all other terms, insurance depends on the parties' agreement. We always recommend insuring your shipment — the premium is minimal relative to the value of the goods.
How We Can Help
For shipments between Czech Republic, Germany, Austria or Slovakia, we advise which Incoterms term best suits your situation. We arrange the right vehicle, deliver on time and handle all documentation. Contact us via the calculator or by phone.
Related services: International transport · Pallet transport