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Bhavani Shipping & Logistics delivers reliable sea freight, customs clearance, and warehousing solutions

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  • 111 Kashish Arcade, Near Zero Point Road, Nana Kapaya, Mundra, Kutch, Gujarat - 370421
  • +919099966776
  • info@bhavanishipping.in
  • Week Days: 09.00 to 18.00 Sunday: Closed

Incoterms

Incoterms guide

Every cross-border sale runs on two agreements at once: a price, and a handoff point. Incoterms are the shorthand the shipping world uses to settle the second one — spelling out, term by term, exactly where the seller’s job ends and the buyer’s begins, and who carries the cost and risk at each stage of the move.

Below is a quick-reference chart mapping each of the 13 classic terms against the tasks involved in getting a shipment from origin to destination, followed by a plain-language definition of each one.

Who pays for what

Task EXWFCAFASFOBCFRCIFCPTCIPDAFDESDEQDDUDDP
Storage before dispatchSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Warehouse handlingSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Export packingSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading for dispatchBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Domestic haulageBuyerBuyer / Seller*SellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Port / terminal feesBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Freight forwarder feesBuyerBuyerBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading onto vesselBuyerBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Main carriage (ocean/air)BuyerBuyerBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Charges on arrivalBuyerBuyerBuyerBuyerBuyerBuyerSellerSellerBuyerBuyerSellerSellerSeller
Duty, tax, customs clearanceBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSeller
Final deliveryBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSellerSeller

* FCA splits in practice: at the seller’s own premises, the seller’s job stops once goods are loaded onto the collecting vehicle; at a named external point, the seller also covers the onward domestic haulage to get it there.

The 13 terms, explained

EXWEx Works

Goods are handed over at the seller’s own address, unloaded and uninsured. The buyer arranges and pays for everything from that point forward.

FCAFree Carrier

Seller delivers the goods, cleared for export, to a carrier chosen by the buyer at an agreed point. Works for any transport mode.

FASFree Alongside Ship

Seller’s responsibility ends once goods sit on the dock beside the vessel at the named port. Used for non-containerised sea cargo.

FOBFree On Board

Risk passes to the buyer once the goods are physically loaded over the ship’s rail at the port of shipment. Sea freight only.

CFRCost and Freight

Seller pays to get the goods to the destination port, but insurance during transit is the buyer’s responsibility. Non-containerised sea cargo.

CIFCost, Insurance and Freight

Same as CFR, except the seller also arranges minimum marine insurance covering the voyage to the destination port.

CPTCarriage Paid To

Seller pays freight to a named destination; risk transfers once goods reach the first carrier. Suits air, containerised, and roll-on/roll-off cargo.

CIPCarriage and Insurance Paid To

CPT plus seller-arranged insurance for the full journey to the named destination.

DAFDelivered At Frontier

Seller delivers to a named border point by land, goods still on the transport and not cleared for import. Any mode, but delivery is overland.

DESDelivered Ex Ship

Goods are made available to the buyer on board the vessel at the destination port, not yet unloaded. Sea freight only.

DEQDelivered Ex Quay

Seller delivers the goods unloaded onto the destination quay; import clearance is still the buyer’s job. Sea freight only.

DDUDelivered Duty Unpaid

Seller brings the goods to the named destination, not unloaded and not cleared through customs. Any transport mode.

DDPDelivered Duty Paid

The seller’s most complete obligation: goods arrive at the named destination, duties and taxes already settled. Any transport mode.