Incoterms 2020

Cost		Freight is Buyer's			Freight is Seller's				Address Delivery
Incoterms	EXW	FCA	FAS	FOB	CFR	CIF	CPT	CIP	DPU	DAP	DDP
Packaging	S	S	S	S	S	S	S	S	S	S	S
Loading from warehouse	B	S	S	S	S	S	S	S	S	S	S
Front transport	B	S	S	S	S	S	S	S	S	S	S
Export customs clearance	B	S	S	S	S	S	S	S	S	S	S
Handling on departure	B	B	B	S	S	S	S	S	S	S	S
Main transportation	B	B	B	B	S	S	S	S	S	S	S
Transportation insurance	B	B	B	B	B	S	B	S	S	S	S
Transportation on arrival	B	B	B	B	B	B	B	B	S	S	S
Import Customs Certificate	B	B	B	B	B	B	B	B	B	B	S
After car	B	B	B	B	B	B	B	B	B	B	S
Unloading to warehouse	B	B	B	B	B	B	B	B	B	B	S

S: SELLER B: BUYER

EXW (Exworks): EXW is the delivery method with the lowest risk and responsibility for the seller. The seller is obliged to keep the goods ready for the buyer in his business, factory or warehouse without loading them to the carrier and passing them through customs. Determining the place of delivery is very important in this model. After the goods are made ready at the delivery point, all costs and risks related to the receipt and transportation of the goods belong to the buyer.

FCA (Free Carrier): In the FCA mode of delivery, the seller clearing the goods through customs transmits them to the carrier selected by the buyer at the specified point. During the transportation of the goods to the vehicle designated for transportation to the buyer's country, the seller is responsible for the upfront transportation costs and the risk associated with the goods. After delivery of the goods, the risks and costs pass to the buyer. Insurance is provided by the buyer. FCA is a form of delivery that can be used in all modes of transportation.

FAS (Free Alongside Ship): It is used in maritime transportation. In the FAS form of delivery, the seller delivers the goods by placing them alongside the ship at the specified port. The customs clearance of the goods must also be carried out by the seller. The seller is responsible for the transportation of the goods until they are placed alongside the ship at the port. After the goods are placed next to the ship, all risks and costs will pass to the buyer. Insurance is also taken out by the buyer.

FOB (Free On Board): Used for sea and inland water transportation. Unlike FAS, the goods are delivered on board. The goods are directed to the vessel chosen by the buyer at the agreed port of loading. All customs procedures and taxes related to the export of the goods are the responsibility of the seller. While the costs up to the ship belong to the seller, the costs and risks after the goods are loaded on the ship belong to the buyer. It is among the most commonly used forms of delivery in our country.

CFR (Cost And Freight): In the CFR form of delivery, the seller delivers the goods on board the ship or supplies the goods delivered on board the ship. Damages and other charges relating to the goods in transit pass to the buyer when the goods are on board. The seller obtains the necessary export permits or other official authorizations for the export of the goods. It also completes customs clearance. The seller makes a transportation agreement to bring the goods to the contracted port and pays the freight and costs itself. In this form of delivery, the seller is not obliged to provide insurance, but is obliged to provide the buyer with the information necessary for insurance.

CIF (Cost, Insurance and Freight): The CIF delivery method generally has the same characteristics as the CFR delivery method mentioned above. The only difference is that the insurance for the goods is carried out by the seller.

CPT (Carriage Paid To): In the CPT delivery method, the seller transmits the information and documents related to the loading to the buyer after the goods have been cleared by customs and delivered to the appointed carrier. After the goods are delivered to the carrier, the risks and costs pass to the buyer. The difference of CPT, which has the same features as CFR delivery method, is that CPT can be used in all modes of transportation.

CIP (Carriage and Insurance Paid To): The CIP mode of delivery is almost identical to the CIF mode of delivery. The difference between the two modes of transport is that CIP can be used in all modes of transport. In this mode of delivery, the insurance of the goods is taken out by the seller. After delivery of the goods to the transportation vehicle, the responsibility passes to the buyer.

DAP (Delivered At Place): It means that the seller delivers the goods to the buyer without unloading them from the transportation vehicle at the predetermined destination. In DAP delivery, the seller is obliged to clear the goods through customs, to take the goods to the designated destination by concluding a contract of carriage and to keep the goods ready for the buyer without unloading them from the vehicle. Risks and costs are borne by the seller until the goods are made available to the buyer. After that, it passes to the buyer. In this form of delivery, insurance is taken out by the seller.

DPU (Delivered At Place Unloaded): In the DPU form of delivery, the seller delivers the goods to the buyer unloaded from the transportation vehicle at the specified destination. The seller bears the risks and expenses incurred until the goods are delivered to the buyer at the point specified in the contract of sale and purchase. Taxes and transportation costs incurred after the goods reach this point and are unloaded are the responsibility of the buyer. Although the seller is not responsible for insurance, the seller is expected to provide the insurance.

DDP (Delivered Duty Paid): DDP is the delivery method in which the seller's responsibility is the highest. In this respect, it is the opposite of Exworks (EXW). In this method, the seller is responsible for customs clearance, transportation and delivery of the goods to the agreed destination. The buyer's only responsibility is to unload the goods at the designated destination. In the DDP mode of delivery, the seller is also expected to provide the insurance.