Shipping Tools
Incoterms
Incoterms Explained for Global Shipping
Incoterms® 2020 are fundamental to international shipping, defining the responsibilities, risks, and cost allocation between buyers and sellers. At MGF, we guide customers through Incoterms selection and compliance, ensuring global shipments are structured properly, costs are managed, and responsibilities are clearly established.
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| FREIGHT COLLECT TERMS | FREIGHT PREPAID TERMS | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INCOTERMS | EXW Ex-Works |
FCA Free Carrier (Warehouse) |
FCA Free Carrier (Port/Airport) |
FAS Free Alongside Ship |
FOB Freight on Board |
CFR Cost & Freight |
CIF Cost Insurance & Freight |
CPT Carriage Paid To |
CIP Carriage & Insurance Paid |
DPU Delivered at Place Unloaded |
DAP Delivered at Place |
DDP Delivered Duty Paid |
| Mode of Transport | Any Mode | Any Mode | Any Mode | Ocean Only | Ocean Only | Ocean Only | Ocean Only | Any Mode | Any Mode | Any Mode | Any Mode | Any Mode |
Obligations and Charges |
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| Export Packaging | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Export Formalities | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Loading at Point of Origin | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin Inland Freight | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin Port Charges | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Forwarding Fee | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Ocean/ Air Freight | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Destination Port Charges | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller |
| Customs Clearance | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Import Duties & Taxes | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Delivery Charges to Final Destination | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller |
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| FREIGHT COLLECT TERMS | FREIGHT PREPAID TERMS | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
INCOTERMS
|
EXW Ex-Works |
FCA Free Carrier (Warehouse) |
FCA Free Carrier (Port/Airport) |
FAS Free Alongside Ship |
FOB Freight on Board |
CFR Cost & Freight |
CIF Cost Insurance A Freight |
CPT Carriage Paid To |
CIP Carriage & Insurance Paid |
DPU Delivered at Place Unloaded |
DAP Delivered at Place |
DDP Delivered Duty Paid |
| Mode of Transport | Any Mode | Any Mode | Any Mode | Ocean Only | Ocean Only | Ocean Only | Ocean Only | Any Mode | Any Mode | Any Mode | Any Mode | Any Mode |
Obligations and Charges |
||||||||||||
| Export Packaging | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Export Formalities | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Loading at Point of Origin | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin Inland Freight | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin Port Charges | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Forwarding Fee | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Ocean/ Air Freight | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Destination Port Charges | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller |
| Customs Clearance | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Import Duties & Taxes | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Delivery Charges to Final Destination | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller |
