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Who pays for what?

Pick an Incoterm to see which party covers each stage of the journey, and where the risk changes hands.

Sea and inland waterway only

Free On Board

Risk passes when goods are on board the ship at origin.

Seller pays Buyer pays
  1. Export clearanceSeller
  2. Transport to portSeller
  3. Loading at originSeller
  4. Main carriageBuyer
  5. InsuranceNot required
  6. Transport at destinationBuyer
  7. Unloading at destinationBuyer
  8. Import clearanceBuyer

Simplified for a typical shipment. Check the official Incoterms 2020 rules and your contract before relying on a term, as the named place changes what applies.