A quick matrix defining boundaries for risk, costs, and transport liability between Buyers and Sellers.
| Term | Full Description | Allowed Transport Mode | Risk Transfer Boundary | Export Clearance | Import Clearance |
|---|---|---|---|---|---|
| EXW | Ex Works | Any Mode | Buyer (At Seller's Facility) | Buyer | Buyer |
| FCA | Free Carrier | Any Mode | Buyer (At Named Carrier Point) | Seller | Buyer |
| FAS | Free Alongside Ship | Sea / Waterways Only | Buyer (Alongside Vessel Port) | Seller | Buyer |
| FOB | Free On Board | Sea / Waterways Only | Buyer (Onboard Vessel Port) | Seller | Buyer |
| CFR | Cost and Freight | Sea / Waterways Only | Buyer (Onboard Vessel Port) | Seller | Buyer |
| CIF | Cost, Insurance & Freight | Sea / Waterways Only | Buyer (Onboard Vessel Port) | Seller | Buyer |
| CPT | Carriage Paid To | Any Mode | Buyer (At Named Carrier Point) | Seller | Buyer |
| CIP | Carriage & Insurance Paid To | Any Mode | Buyer (At Named Carrier Point) | Seller | Buyer |
| DAP | Delivered At Place | Any Mode | Seller (Ready for Unloading) | Seller | Buyer |
| DPU | Delivered at Place Unloaded | Any Mode | Seller (Unloaded at Destination) | Seller | Buyer |
| DDP | Delivered Duty Paid | Any Mode | Seller (At Destination Facility) | Seller | Seller |
Incoterms define transaction dynamics, directing who arranges insurance, pays port terminals, handles customs documents, and takes responsibility at specific routing points. When initiating shipments with AGL, ensure your purchase contracts clearly indicate the chosen Incoterms category to coordinate transport billing.