🚢 Incoterms basics

Unit 3 · English for trade & logistics · 10 min

Incoterms® 2020 split duties between seller and buyer: EXW (Ex Works), FOB (FOB Incoterm — seller loads at the port of shipment), CIF (Cost, Insurance and Freight to the destination port), DAP (Delivered At Place). Always state the term in the contract.

Words in this lesson

• EXW (Ex Works) — EXW (Ex Works)
• FOB (FOB Incoterm) — FOB (FOB Incoterm)
• CIF (Cost, Insurance and Freight) — CIF (Cost, Insurance and Freight)
• DAP (Delivered At Place) — DAP (Delivered At Place)
• port of shipment — port of shipment
• port of destination — port of destination

For details, rely on the official ICC Incoterms® 2020 text and your contract.

Project: Look at a quotation and find which Incoterm it uses.