International Commercial Terms
Incoterms® define where delivery takes place, when risk transfers from seller to buyer, and who pays for transport, insurance, and customs. Published by the International Chamber of Commerce (ICC), the 2020 rules are the global standard used in contracts, quotations, and shipping documents worldwide.
Structured by official rule groups — E, F, C, and D — to help you choose the right term for your shipment. For Egypt-origin or Egypt-destination cargo, our team advises on FOB, CIF, EXW, and DDP daily across Alexandria, Damietta, Sokhna, and Port Said.
Incoterm Advisor
Search any term, filter by transport mode, or pick a common Egypt trade scenario — then use the finder or compare tool below.
Incoterm Finder
Answer a few questions — we suggest the best Incoterm® 2020 rule for your shipment. Indicative only; confirm in your sales contract.
Compare Incoterms
Side-by-side comparison of any two terms — ideal for FOB vs CIF or EXW vs FCA decisions.
Full Reference — All 11 Terms
Official ICC rule groups from minimum seller obligation (E) to maximum seller obligation (D).
Departure — Minimum Seller Obligation
The seller makes goods available at their premises. The buyer bears all costs and risks from that point onward.
EXW
Ex Works- Risk transfer
- At the seller's premises — buyer assumes risk once goods are available for pickup
- Seller bears
- Make goods available, packaged and ready at named place (factory, warehouse, etc.)
- Buyer bears
- Loading, export clearance, all carriage, insurance, import clearance, and duties
- Insurance
- Buyer (optional — not seller's obligation)
Main Carriage Unpaid by Seller
The seller delivers goods to a carrier or alongside a vessel. The buyer pays for main transport and bears risk from the handover point.
FCA
Free Carrier- Risk transfer
- When goods are delivered to the carrier or another person at the named place
- Seller bears
- Export clearance and delivery to carrier at agreed point (seller's or buyer's premises)
- Buyer bears
- Main carriage, insurance, import clearance, unloading, and duties
- Insurance
- Buyer (optional)
FAS
Free Alongside Ship- Risk transfer
- When goods are placed alongside the vessel at the named port of shipment
- Seller bears
- Delivery alongside ship, export clearance; buyer arranges loading onto vessel
- Buyer bears
- Loading on board, ocean freight, insurance, import, and discharge
- Insurance
- Buyer (optional)
FOB
Free On Board- Risk transfer
- When goods are on board the vessel at the port of shipment
- Seller bears
- Loading on board, export clearance, and costs until goods cross the ship's rail
- Buyer bears
- Ocean freight, insurance, import clearance, discharge, and duties
- Insurance
- Buyer (optional)
Main Carriage Paid by Seller
The seller contracts and pays for transport to the destination. Risk transfers earlier — typically when goods are handed to the first carrier or loaded on board.
CFR
Cost and Freight- Risk transfer
- When goods are on board the vessel at port of shipment (same as FOB)
- Seller bears
- Export clearance, loading, and ocean freight to named port of destination
- Buyer bears
- Insurance, discharge, import clearance, and duties from port of destination
- Insurance
- Buyer (seller not obliged to insure)
CIF
Cost, Insurance and Freight- Risk transfer
- When goods are on board the vessel at port of shipment
- Seller bears
- Export clearance, freight, and minimum insurance (ICC C) to destination port
- Buyer bears
- Discharge, import clearance, duties; any additional insurance beyond minimum
- Insurance
- Seller (mandatory — minimum cover only)
CPT
Carriage Paid To- Risk transfer
- When goods are delivered to the first carrier
- Seller bears
- Export clearance and carriage to named place of destination
- Buyer bears
- Insurance, import clearance, unloading, and duties from destination
- Insurance
- Buyer (optional)
CIP
Carriage and Insurance Paid To- Risk transfer
- When goods are delivered to the first carrier
- Seller bears
- Carriage plus comprehensive insurance (ICC A) to named destination
- Buyer bears
- Import clearance, unloading, and duties
- Insurance
- Seller (mandatory — wider cover than CIF)
Arrival — Maximum Seller Obligation
The seller bears cost and risk until goods reach the destination country or the buyer's premises. Import clearance may still be the buyer's responsibility except under DDP.
DAP
Delivered at Place- Risk transfer
- When goods are available for unloading at the named destination
- Seller bears
- All carriage to destination; export clearance; delivery ready to unload
- Buyer bears
- Import clearance, duties, and unloading (unless seller agrees otherwise)
- Insurance
- Optional — typically seller insures during transit if contracted
DPU
Delivered at Place Unloaded- Risk transfer
- After goods are unloaded at the named place of destination
- Seller bears
- Carriage, export clearance, and unloading at destination
- Buyer bears
- Import clearance and import duties
- Insurance
- Optional
DDP
Delivered Duty Paid- Risk transfer
- When goods are available to the buyer, cleared for import, at the named destination
- Seller bears
- All costs including export, carriage, insurance, import clearance, and duties
- Buyer bears
- Unloading at final destination (unless agreed otherwise)
- Insurance
- Optional — seller typically arranges transit cover
What Incoterms Do Not Cover
Payment terms
Incoterms do not define when or how payment is made (LC, TT, open account). These must be stated separately in your contract.
Title / ownership
Transfer of ownership is a legal matter outside Incoterms. Risk and cost allocation are not the same as property rights.
Quality or quantity claims
Disputes over goods condition, specifications, or short shipment are governed by your sales contract, not Incoterms alone.
Force majeure
Delays from strikes, war, or natural events require separate contractual clauses — Incoterms address delivery mechanics only.
Common Questions
FOB vs CIF — which should I use?
Under FOB, the buyer controls freight and insurance from the port of loading — common for experienced importers who negotiate their own rates. Under CIF, the seller arranges freight and minimum insurance to the destination port — simpler for buyers who want a landed cost at port. Risk transfers at the same point for both (on board at origin port); the difference is who contracts and pays for carriage and insurance.
EXW vs FCA — what is the practical difference?
EXW places maximum responsibility on the buyer from the seller's door — the buyer typically handles export clearance, which can be difficult if the buyer has no presence in the seller's country. FCA is often preferred because the seller handles export clearance and delivers to a carrier, making customs compliance at origin straightforward.
Can I use FOB for air freight?
No. FOB, FAS, CFR, and CIF apply to sea and inland waterway transport only. For air cargo, use FCA, CPT/CIP, or D-group terms. Using FOB on an air waybill is a common documentation error that creates contractual ambiguity.
DDP — does the seller pay everything?
Almost. The seller bears all costs to deliver goods cleared for import at the buyer's location, including duties and taxes. Unloading at the final destination remains the buyer's responsibility unless explicitly agreed otherwise. DDP requires the seller to be registered or represented for import in the destination country — not always practical.
Not Sure Which Term Fits Your Shipment?
Our commercial team advises on Incoterms selection daily for sea, air, and land cargo through Egyptian ports and worldwide.