The Trade ManifestIncoterms and the paperwork

THE TRADE MANIFEST · INCOTERMS 2020 · HS 6-DIGIT

Every trade term, filed on one manifest.

Each entry is stamped the same way — the term itself, where risk passes, who carries the cost, which transport modes it covers, who insures, and which documents carry the obligation. Compare Incoterms and customs concepts side by side instead of trusting a forwarder's memo.

Sort by transport mode

8 entries Inland Freight 8 entries Sea Freight 7 entries Air Freight 7 entries Rail & Multimodal

Inland Freight

All Inland Freight →
Inland Freight EXW, FCA, and the Handover Problem at the Seller's Dock TermEXW (Ex Works) and FCA (Free Carrier) RiskEXW: risk passes when goods are made available at the seller's premises, not loaded. FCA: risk passes when goods are delivered to the carrier nominated by the buyer at a named place. CostEXW: buyer bears all costs from seller's premises, including loading and main carriage. FCA: seller bears costs up to delivery to carrier; buyer bears main carriage, insurance, and duty. ModeAny mode (road, rail, air, sea, multimodal). In international trade, the moment goods leave the seller's control is a critical point where risk and responsibility shift. Inland Freight DAP and DPU: The One Letter That Changes Who Unloads TermDAP (Delivered at Place) and DPU (Delivered at Place Unloaded) RiskUnder DAP, risk passes when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading at the named place. Under DPU, risk passes after the goods are unloaded from the arriving means of transport at the named place. CostThe seller bears all costs to the named place, including main carriage and, under DPU, unloading. The buyer bears import duty, taxes, and customs clearance, unless otherwise agreed. ModeAny mode of transport, including sea, air, road, rail, and multimodal. DAP and DPU are two Incoterms rules that differ by a single letter but allocate a critical task: unloading. Inland Freight The Named Place Is the Whole Point of Every Incoterm TermIncoterms 2020 rules, with emphasis on the named place in each rule RiskDepends on the specific Incoterm; risk passes at the named place or when goods are delivered to the first carrier, loaded on board, or made available at destination CostVaries by rule: seller pays costs up to the named place or port; buyer pays thereafter, except DDP where seller pays duty ModeAny mode for EXW, FCA, CPT, CIP, DAP, DPU, DDP; sea and inland waterway only for FAS, FOB, CFR, CIF Incoterms are a set of internationally recognized rules published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in the delivery of goods. Inland Freight Inland Carriage and Where It Fits in an Incoterm Choice TermInland carriage as a component of Incoterms rules (e.g., FCA, CPT, CIP, DAP, DPU, DDP) RiskDepends on the chosen Incoterm: for FCA, risk passes when goods are delivered to the carrier at the named place; for CPT/CIP, risk passes when goods are handed to the first carrier; for DAP/DPU, risk passes at the named destination; for DDP, risk passes at the named destination but seller bears all costs including duty. CostVaries by rule: under FCA, buyer pays main carriage and insurance; under CPT/CIP, seller pays main carriage and insurance; under DAP/DPU, seller pays main carriage and insurance but not duty; under DDP, seller pays all costs including duty. ModeAny mode, including inland (road, rail, barge) and sea/air where applicable. Inland carriage is the movement of goods by road, rail, or barge between a seaport or airport and an inland point, or entirely within a country or customs territory. Inland Freight Commercial Invoice, Packing List, and the Paperwork Triangle TermCommercial Invoice, Packing List, and Customs Documentation (the Paperwork Triangle) RiskRisk transfer is not determined by the commercial invoice or packing list; it is set by the Incoterms rule in the sales contract. For example, under FOB risk passes when goods are on board the vessel at the port of shipment; under CIF risk also passes at shipment, but the seller must arrange and pay for carriage and insurance to the named destination; under DAP risk passes at the named place of destination ready for unloading; under DDP risk passes at the named place of destination after import clearance. The paperwork triangle documents the transaction but does not itself move risk. CostThe Incoterms rule allocates freight, insurance, and duty costs. Under EXW the buyer bears all costs from the seller's premises; under FCA, FOB, and FAS the buyer pays main carriage and insurance; under CFR and CIF the seller pays main carriage and, under CIF, insurance, while the buyer pays import duty and destination charges unless otherwise agreed; under DAP the seller pays carriage to the named destination but the buyer pays import duty and clearance; under DDP the seller pays carriage, import duty, and clearance. The commercial invoice and packing list must be consistent with the chosen rule. ModeAny mode. The paperwork triangle applies to sea, inland waterway, road, rail, air, and multimodal shipments. Incoterms 2020 rules are grouped for any mode or modes (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and for sea and inland waterway (FAS, FOB, CFR, CIF). The commercial invoice and packing list are mode-neutral, but the transport document and insurance certificate vary by mode and by the Incoterms rule. Every international shipment moves on a triangle of paperwork: the commercial invoice, the packing list, and the transport document. Inland Freight Export Packing and Why the Carrier Cares About It TermExport packing and its relationship to carrier liability and Incoterms RiskRisk of loss or damage to goods passes from seller to buyer at the point specified by the chosen Incoterm (e.g., on delivery to the first carrier, on loading, or on arrival). Packing adequacy is the seller’s responsibility until that point; thereafter, the buyer bears risk, but carrier liability may be limited by the contract of carriage and international conventions. CostThe seller pays for packing as part of its obligation to deliver goods in a condition fit for carriage, unless the Incoterm shifts specific loading or stowage costs to the buyer. Main freight, insurance, and duty costs are allocated according to the Incoterm and the contract of sale. ModeAny mode (sea, inland, air, rail, road, multimodal), though packing requirements vary by mode and handling environment. Export packing is the set of physical measures a seller takes to prepare goods for international transport. Inland Freight Customs Valuation: What Counts Toward the Declared Value TermCustoms valuation (transaction value method) RiskRisk transfer is separate from customs valuation; it is determined by the sales contract and Incoterms, not by customs value. CostThe importer bears duty and taxes; the seller bears costs up to the agreed Incoterm delivery point; freight and insurance costs may be included in the customs value depending on the Incoterm. ModeAny (sea, air, inland, rail, multimodal) Customs valuation is the process of determining the monetary worth of imported goods for the purpose of calculating customs duties and taxes. Inland Freight Duty Drawback and Getting Money Back on Re-Exports TermDuty drawback RiskNot applicable; drawback is a customs refund mechanism, not a sales term, so risk transfer is governed by the underlying sale contract and its Incoterm. CostThe importer or exporter who paid the import duty and later re-exports, destroys, or substitutes the goods; refund is claimed by the party named on the import entry or its authorized agent. ModeAny mode (sea, air, rail, road, or multimodal) because drawback follows the imported goods, not the transport mode. Duty drawback is a customs procedure that refunds import duties, taxes, and fees when imported goods are later re-exported, destroyed, or used in a way that qualifies under the rules.

Sea Freight

All Sea Freight →
Sea Freight Why FOB Still Trips Up First-Time Ocean Shippers TermFOB (Free On Board) — an Incoterm rule for sea and inland waterway transport RiskRisk passes from seller to buyer when the goods are placed on board the vessel nominated by the buyer at the named port of shipment; before that point the seller bears loss or damage, after it the buyer does. CostSeller pays costs up to and including loading on board at the port of shipment; buyer pays the main ocean freight, marine cargo insurance, and import duty, taxes, and destination charges. ModeSea and inland waterway only; not appropriate for containerized cargo handed over at a terminal rather than lifted onto a ship, and not for air, road, or rail. FOB, short for Free On Board, is one of the oldest and most familiar rules in the Incoterms family. Sea Freight CIF and CIP: Insurance Is the Hidden Difference TermCIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To) RiskUnder CIF, risk passes when goods are placed on board the vessel at the port of shipment. Under CIP, risk passes when goods are handed over to the first carrier at the named place of delivery. CostSeller pays freight to the named destination and cargo insurance. Buyer pays import duties, taxes, and any costs after arrival, unless otherwise agreed. ModeCIF applies only to sea and inland waterway transport. CIP applies to any mode, including air, road, rail, and multimodal. CIF and CIP are two Incoterms rules that look nearly identical on a quotation sheet. Sea Freight FAS, FOB, and the Rail on the Quay TermFAS (Free Alongside Ship) and FOB (Free On Board) RiskFAS: risk passes when goods are placed alongside the vessel at the named port of shipment; FOB: risk passes when goods are on board the vessel at the named port of shipment. CostFAS: seller pays costs until goods are alongside ship; buyer pays loading, main freight, insurance, and import duties. FOB: seller pays costs until goods are on board; buyer pays main freight, insurance, and import duties. ModeSea and inland waterway Free Alongside Ship (FAS) and Free On Board (FOB) are two Incoterms rules designed for sea and inland waterway transport. Sea Freight CPT and CFR Look Alike Until You Read the Risk Clause TermCPT (Carriage Paid To) and CFR (Cost and Freight) RiskCPT: risk passes when goods are handed to the first carrier; CFR: risk passes when goods are loaded on board the vessel at the port of shipment CostSeller pays main carriage (freight) to named destination; buyer pays insurance and any import duties/taxes unless otherwise agreed ModeCPT: any mode (sea, air, road, rail, multimodal); CFR: sea and inland waterway only CPT and CFR are two Incoterms rules that often get lumped together because both require the seller to pay for main carriage to a named destination. Sea Freight Bills of Lading and the Difference Between Straight and Order TermBill of Lading (Straight vs. Order) RiskRisk in the goods passes according to the underlying sale contract and its Incoterm, not the bill of lading itself; the bill governs who may claim the cargo from the carrier at destination. CostFreight, insurance, and duty costs follow the sale contract and its Incoterm; the bill of lading is the carrier's receipt and contract of carriage, not the pricing document. ModeSea and inland waterway carriage; the equivalent air document is the air waybill, which is not negotiable. A bill of lading is the document a carrier issues when it takes cargo on board. Sea Freight Demurrage and Detention Charges at the Container Yard TermDemurrage and Detention (container yard charges) RiskRisk of demurrage and detention passes to the party that controls the container when free time expires—typically the consignee after discharge, but can remain with the shipper if the container is not returned empty in time. CostThe party responsible for the container at the time charges accrue: demurrage is usually paid by the consignee or their customs broker; detention is usually paid by the consignee or the party that holds the container after pickup. Freight and insurance are separate and follow the sale contract and Incoterm. ModeSea freight (including inland haulage by truck or rail when the container moves under a through transport document). Demurrage and detention are two separate charges that arise when a shipping container stays in the wrong place for too long. Sea Freight How Incoterms Decide Who Pays When a Shipment Goes Wrong TermIncoterms 2020 rules as a system for allocating risk, cost, and obligation between seller and buyer in international sales contracts RiskEach Incoterm specifies a named point or event where risk of loss or damage passes from seller to buyer; for example, under FOB risk passes when goods are on board the vessel, while under DAP risk passes when goods are ready for unloading at the named destination CostThe Incoterm determines which party pays for main carriage, insurance, and import duties; for instance, under CIF the seller pays freight and insurance to the destination port, while under DDP the seller pays for everything including import duty, and under EXW the buyer bears nearly all costs from the seller's premises ModeRules are either for any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) or for sea and inland waterway only (FAS, FOB, CFR, CIF); choosing a sea-only rule for containerized cargo moving by air or multimodal transport creates mismatches Incoterms are a set of internationally recognized trade terms published by the International Chamber of Commerce. Sea Freight Freight Forwarders Versus Customs Brokers: Two Jobs, Not One TermFreight forwarder vs customs broker (roles in international trade) RiskRisk transfer is governed by the Incoterms rule in the sales contract, not by the forwarder or broker; typically risk passes at a named point such as when goods are loaded on board (FOB) or delivered to the buyer's premises (DAP). CostThe seller or buyer pays freight, insurance, and duty according to the agreed Incoterms rule; the forwarder arranges transport and the broker handles customs formalities, but neither bears these costs unless separately contracted. ModeAny mode (sea, air, road, rail, or multimodal) In international shipping, two distinct professionals often get lumped together: the freight forwarder and the customs broker.

Air Freight

All Air Freight →
Air Freight Air Freight Rates and the Chargeable Weight Trap TermChargeable weight in air freight RiskRisk transfer is governed by the chosen Incoterm, not by chargeable weight; chargeable weight affects only the freight charge calculation. CostThe party responsible for paying air freight under the Incoterm (often the buyer under FCA, CPT, or DAP; the seller under DDP) bears the chargeable-weight cost; duty is typically the importer's responsibility unless DDP applies. ModeAir (including air express and consolidated air freight) Air freight pricing rarely follows the number on the bathroom scale. Air Freight When to Insure a Shipment and Who Holds the Policy TermCargo insurance under Incoterms 2020 (risk transfer vs. insurance obligation) RiskRisk passes from seller to buyer at the point named in the chosen Incoterm (e.g., on board the vessel for FOB/CFR/CIF, at the carrier's terminal for FCA, or at the named destination for DAP/DDP). CostThe buyer pays the main freight and insurance costs under FCA, FOB, and CFR; the seller pays them under CIF and CIP. Duty is paid by the buyer under DAP and by the seller under DDP. ModeAny mode (air, sea, inland), though CIF and FOB apply only to sea and inland waterway; CIP, FCA, DAP, and DDP apply to any mode. Cargo insurance is not a single obligation that travels automatically with a shipment. Air Freight Air Cargo Security Screening and the Paperwork It Adds TermAir cargo security screening (regulated agent and known consignor regimes) RiskRisk of loss or damage passes according to the underlying Incoterms rule or contract of sale, not at the security screening point; screening itself does not transfer risk. CostThe party that contracts the air freight (usually the seller under CIF/CIP or the buyer under FCA/FOB/ex works) pays screening and security charges; the consignor or shipper typically bears the cost of making the goods screening-ready, and the buyer pays duty and import charges unless the Incoterms rule states otherwise. ModeAir Air cargo security screening is the set of checks applied to goods before they are loaded onto an aircraft. Air Freight Export Licenses and the Goods That Need Them TermExport license RiskRisk of loss or damage to goods passes according to the Incoterms rule chosen by the parties; the export license itself does not transfer risk but must be obtained before shipment. CostThe exporter (seller) typically bears the cost of obtaining the export license, while freight, insurance, and import duties are allocated according to the Incoterms rule and the sales contract. ModeAny (sea, air, inland, rail, multimodal) An export license is an official authorization that a government requires before certain goods can be shipped out of its territory. Air Freight Letters of Credit: Splitting Risk Between Buyer and Seller TermLetter of Credit (L/C) RiskRisk of non-payment shifts from seller to issuing bank once compliant documents are presented; risk of non-delivery remains with buyer unless the L/C requires a transport document that evidences shipment. CostBuyer pays issuing bank fees and freight/insurance/duty as per sales contract; seller pays advising/negotiation bank fees and any discrepancy charges. ModeAny mode (sea, air, inland, multimodal), but air freight L/Cs often require an air waybill and may specify airport-to-airport or door-to-door delivery. A letter of credit is a bank's written promise to pay a seller a specified amount, provided the seller presents documents that strictly comply with the L/C terms. Air Freight How the Harmonized System Turns Goods Into Six Digits TermHarmonized System (HS) — the international nomenclature for classifying traded goods, administered nationally through customs tariff schedules RiskClassification itself does not transfer risk; risk passes under the sales contract's chosen Incoterm, while the HS code determines duty, tax, and control treatment at the border CostThe importer of record normally bears duty, taxes, and clearance costs, though the sales contract may shift freight and insurance costs to either party Modeany Every shipment that crosses a border has to be named. Air Freight Why Two Similar Products Get Different HS Codes TermHS classification (Harmonized System customs code) RiskRisk transfer is not governed by HS codes; it is set by the sales contract and Incoterms. The HS code determines duty and regulatory treatment, not the point at which risk passes. CostThe importer or exporter named in the customs declaration bears duty and tax costs; freight and insurance costs are allocated by the Incoterms rule in the sales contract. ModeAny (air, sea, inland, rail, multimodal) Two products can look nearly identical on a shelf but end up with different Harmonized System codes because the HS is not a visual catalogue.

Rail & Multimodal

All Rail & Multimodal →
Rail & Multimodal DDP Is Easier for Buyers and Harder for Sellers TermDDP (Delivered Duty Paid) RiskRisk passes from seller to buyer when the goods are placed at the buyer’s disposal at the named place of destination, ready for unloading. CostSeller bears all costs to the named destination, including main freight, insurance, and import duties/taxes. ModeAny mode (sea, air, rail, road, multimodal). DDP, or Delivered Duty Paid, is an Incoterms rule that places nearly every obligation on the seller. Rail & Multimodal HS Classification Errors That Trigger Customs Delays TermHS (Harmonized System) classification and its role in customs clearance RiskRisk of delay, penalty, or seizure passes to the importer of record once the entry is filed under an incorrect HS code; the seller's delivery obligation under the applicable Incoterm is generally unaffected by a classification dispute at destination. CostThe importer of record bears duty, tax, and penalty costs arising from a wrong HS code; the seller bears correction costs only if the sales contract or Incoterm places classification responsibility on the exporter. ModeAny mode, including rail, sea, air, and inland carriage; HS codes are mode-neutral and apply to the goods, not the conveyance. An HS code is the numerical label a customs authority uses to decide what a shipment is, how much duty it owes, and whether any special controls apply. Rail & Multimodal Binding Rulings and the Case for Asking Customs First TermBinding ruling (advance customs classification decision) RiskRisk of misclassification, duty adjustment, or penalty remains with the importer until a binding ruling is issued; once issued, the ruling fixes the classification and duty treatment for the described goods, shifting the risk of ordinary reclassification to the customs authority for the stated period. CostThe importer or its customs broker bears the cost of applying for a ruling; the exporter may bear costs if it agrees to provide technical product information or samples. Duty, taxes, and any penalties are normally borne by the importer of record. ModeAny mode: sea, air, rail, road, or multimodal. Binding rulings apply to the goods and their classification, not to the transport mode. A binding ruling is a written decision from a customs authority that fixes the tariff classification, origin, or valuation treatment of specific goods before they are imported. Rail & Multimodal Country of Origin Is Not Where the Box Was Packed TermCountry of origin (rules of origin) RiskOrigin determination does not itself transfer risk; it assigns economic nationality to goods. Risk transfer is governed by the applicable Incoterm rule or contract, not by origin. CostDuty and preferential tariff costs fall on the importer of record; origin-related documentation and compliance costs are typically borne by the exporter or producer, as allocated by the sales contract. ModeAny mode: sea, air, rail, road, and multimodal. Country of origin is a legal and economic concept, not a physical description of where a box was packed, warehoused, or shipped from. Rail & Multimodal Free Trade Agreements and the Rules of Origin Behind Them TermFree Trade Agreement (FTA) and Rules of Origin RiskRisk transfer is governed by the underlying sales contract and its chosen Incoterm, not by the FTA itself; origin qualification does not shift risk. CostThe FTA may eliminate or reduce customs duty, but freight, insurance, and other logistics costs remain allocated by the Incoterm and the parties' contract. ModeAny mode (sea, air, rail, road, multimodal), though rules of origin may include mode-specific transport requirements for maintaining originating status. Free trade agreements are treaties between two or more countries that reduce or eliminate tariffs on goods that meet specific origin criteria. Rail & Multimodal De Minimis Thresholds and When Small Shipments Slip Through TermDe minimis threshold RiskRisk of loss or damage passes according to the underlying sale contract and Incoterm, not the de minimis threshold; the threshold only determines when customs duty and import taxes are waived, so risk transfer is independent of it. CostThe seller or buyer pays freight and insurance according to the Incoterm; the importer (buyer or consignee) is normally liable for duty and import taxes, but when the shipment value is at or below the de minimis threshold, those duty and tax costs are waived by the importing country. ModeAny mode, including air, sea, rail, road, and multimodal; de minimis thresholds are set by the importing country and apply regardless of how the goods arrive. A de minimis threshold is the value ceiling below which an importing country waives customs duty and, in many cases, import taxes on a shipment. Rail & Multimodal Incoterms 2020 Versus 2010: What Actually Changed TermIncoterms 2020 versus Incoterms 2010 (the full set of eleven rules published by the International Chamber of Commerce, with the 2020 revision superseding the 2010 version) RiskRisk transfer points are defined rule by rule and were not moved by the 2020 revision; the substantive change is that in FCA the parties may now agree that the buyer instructs its carrier to issue a bill of lading with an on-board notation to the seller, which lets the seller satisfy a letter of credit while risk still passes when goods are handed to the carrier at the named place CostCost allocation follows the chosen rule: under EXW the buyer bears essentially all costs from the seller's premises; under DDP the seller bears carriage, insurance where arranged, and import duty; the 2020 revision shifted certain terminal handling and security-related costs in CIP, DAP, DPU and FCA, and renamed DAT to DPU so that unloading at destination is clearly the seller's cost ModeEXW, FCA, CPT, CIP, DAP, DPU and DDP apply to any mode including rail, road, air and multimodal; FAS, FOB, CFR and CIF are reserved for sea and inland waterway transport only Incoterms are the International Chamber of Commerce's standard trade definitions that divide tasks, costs and risk between a seller and a buyer in a sale of goods.