EXW, FCA and DAP Incoterms: where do costs and risk change hands?

Incoterms set where transport costs and risk pass from the seller to the buyer. Stating the Incoterm when you ask for a freight quote makes the scope of the quote clear from the start.

EXW: Ex Works

The seller makes the goods available at its own premises. Loading, export customs and transport are the buyer’s responsibility. This is where the buyer needs the most complete transport quote.

FCA: Free Carrier

The seller hands the goods over to the carrier named by the buyer at the agreed place and completes export customs. It is common in road freight because loading and export documents stay with the seller.

DAP: Delivered at Place

The seller has the goods carried to the agreed address in the buyer’s country. Import duties and customs clearance are the buyer’s. The quote covers all transport costs up to the destination.