⚡ Quick Incoterm Finder

📊 Risk & Cost Transfer — Seller → Buyer

SELLER PAYS MORE ←
→ BUYER PAYS MORE
Seller's factoryOrigin portOn vesselDestination portBuyer's door

Click any term above to jump to its explanation below.

EXW
Ex Works All modes
Most risk for buyer

Seller makes goods available at their premises (factory/warehouse). The buyer collects and handles everything: export clearance, loading, freight, insurance, import customs duty and VAT.

✓ Seller's obligations
  • Package & label goods
  • Make available at named place
  • Provide commercial invoice
✗ Buyer's obligations
  • Export clearance & loading
  • All freight & insurance
  • Import customs & duty in SA
💡 SA importer note: EXW is common when buying from China. SARS calculates duty on CIF value (cost + insurance + freight to SA port) — so even though you "only" paid the factory price, your customs duty base is much higher.
FCA
Free CarrierAll modes

Seller delivers goods to a named carrier or another nominated party at the seller's premises or another named place. Export formalities are the seller's responsibility. Risk transfers to buyer once goods are handed to carrier.

✓ Seller pays
  • Export clearance & export duty
  • Delivery to named carrier
✗ Buyer pays
  • Main carriage & insurance
  • SA import duty & VAT
💡 Incoterms 2020 added an option for the buyer to instruct their carrier to issue an on-board bill of lading to the seller — useful for letters of credit in sea freight.
CPT
Carriage Paid ToAll modes

Seller pays freight to the named destination. Risk transfers to buyer when goods are handed to the first carrier — earlier than when freight is paid to. The buyer must arrange their own insurance for the main leg.

✓ Seller pays
  • Export clearance
  • Freight to named destination
✗ Buyer pays
  • Insurance (optional but advised)
  • SA import duty & VAT
  • Destination port charges
CIP
Carriage and Insurance Paid ToAll modes

Same as CPT, but the seller must also provide cargo insurance. Incoterms 2020 raised the minimum insurance requirement to Institute Cargo Clauses (A) — the highest level — for CIP (previously only Clause C).

✓ Seller pays
  • Export clearance
  • Freight to named destination
  • Insurance (ICC Clauses A)
✗ Buyer pays
  • SA import duty & VAT
  • Destination terminal charges
💡 CIP is increasingly preferred over CIF for containerised shipments because it applies to all modes and requires stronger insurance coverage.
DAP
Delivered at PlaceAll modes

Seller delivers goods, ready for unloading, at the named destination (e.g. buyer's warehouse in Johannesburg). Seller pays all costs to get goods there — but the buyer handles import clearance, customs duty and VAT at the destination.

✓ Seller pays
  • Export clearance
  • All freight & insurance
  • Unloading at destination port
✗ Buyer pays
  • SA import duty & VAT
  • SARS customs clearance costs
DPU
Delivered at Place UnloadedAll modes · New in 2020
New 2020

Formerly DAT (Delivered at Terminal). Seller delivers goods unloaded at the named place — this can be a terminal, warehouse, or the buyer's premises. DPU is the only Incoterm where the seller is responsible for unloading.

✓ Seller pays
  • All freight, insurance & unloading
  • Export clearance
✗ Buyer pays
  • SA import duty & VAT
  • Onward transport from terminal
DDP
Delivered Duty PaidAll modes
Most risk for seller

The seller bears maximum responsibility — paying all costs including export clearance, freight, insurance, SA import duty and VAT, and delivery to the buyer's door. The buyer simply receives the goods.

✓ Seller pays everything
  • Export & import clearance
  • All freight & insurance
  • SA customs duty & VAT
  • Delivery to named destination
✓ Buyer's obligation
  • Accept delivery
  • Assist with import formalities if required
⚠️ Warning for SA importers: Many Chinese e-commerce sellers offer DDP pricing. However, the foreign seller may not be VAT-registered in SA — meaning you could face liability if SARS queries the transaction. Use a licensed customs broker.

🚢 Sea & Inland Waterway Only

FAS
Free Alongside ShipSea only

Seller delivers goods alongside the vessel at the named port of shipment (e.g. Durban Port). The seller handles export clearance. Risk and cost transfer to buyer once goods are alongside the ship.

✓ Seller pays
  • Inland transport to port
  • Export clearance & export duty
✗ Buyer pays
  • Loading onto vessel
  • Ocean freight & insurance
  • SA import duty & VAT
💡 FAS is mainly used for bulk or break-bulk cargo (grain, coal, steel) — not recommended for containerised goods. Use FCA instead.
FOB
Free on BoardSea only · Most common in SA
Most common

Seller loads goods onto the vessel at the named port. Risk and cost pass to the buyer once goods are on board. Export clearance is the seller's responsibility.

✓ Seller pays
  • All costs to port of loading
  • Loading onto vessel
  • Export clearance
✗ Buyer pays
  • Ocean freight from origin port
  • Marine insurance
  • SA import duty & VAT
  • Port & clearing charges in SA
💡 SARS customs value: When importing on FOB terms, SARS adds freight and insurance to arrive at the CIF customs value before applying the duty rate. Make sure your customs agent knows the full freight cost.
CFR
Cost and FreightSea only

Seller pays freight to the named port of destination but risk transfers to the buyer when goods are loaded on board at origin. Insurance is the buyer's responsibility.

✓ Seller pays
  • Export clearance
  • Ocean freight to SA port
✗ Buyer pays
  • Marine insurance
  • SA import duty & VAT
  • Port & terminal charges
CIF
Cost, Insurance and FreightSea only · SARS customs basis
SARS basis

Seller pays freight and minimum insurance to the named port of destination. Risk transfers when goods are on board at origin. CIF is the basis SARS uses to determine customs value — all import duties in SA are calculated on the CIF value at the SA port of entry.

✓ Seller pays
  • Export clearance
  • Ocean freight to SA port
  • Minimum marine insurance (ICC C)
✗ Buyer pays
  • SA import duty (on CIF value)
  • 15% VAT (on CIF + duty)
  • Port & clearing charges
📌 SARS customs formula: Duty = CIF value × duty %  |  VAT = (CIF value + duty) × 15%

📋 Quick Reference — All 11 Incoterms 2020

Term Full Name Mode Seller pays freight? Seller pays insurance? Seller clears SA import?

🇿🇦 Key Rules for South African Importers