Incoterms allows for the consignee and consignor to make arrangements on method of transports and who covers what costs and liability to what part of the journey. This will become more noticeable after Brexit, please look carefully at the Incoterms before agreeing or you could be paying extra Duty charges.

EXW – Ex-works

Shipper pays for everything and arranges transport from supplier’s premises.

FCA – Free Carrier

Seller arranges for the goods to be delivered to the port, the buyer then pays for all other charges.

CPT – Carriage paid to

The seller will pay for the goods to be transported up to an agreed location (usually a pre agreed address buy the buyer/seller).

CIP – Carriage and insurance paid to

The seller will pay for the goods to be shipped up to an agreed location (like above), plus arrange insurance caver and paying any insurance premium needed.

DAT – Delivered at terminal

Seller arranging and paying for transport of the goods to arrive at a pre-arranged port.

DAP – Delivered at place

Used to be DDU – Delivered duty unpaid. The seller pays for all transport and costs with the buyer paying for all the customs clearance, duty and VAT plus any transit documents required.

DDP – Delivered duty paid

Seller pays for everything included in the selling price, everything delivered to the buyer’s door without any charges for anything else.