Incoterms define delivery conditions and obligations in international trade contracts. Risk transfers from seller to buyer at different points in journey. CIF/CIP terms shift main voyage risk to buyer
Port of discharge marks the end of sea or air journey. Customs clearance occurs at this location. Risk transfer occurs at port of discharge according to Incoterms. Goods may need temporary storage at port
CPT stands for Carriage Paid To, part of ICC's 11 Incoterms. Exporter pays for transportation from their location to destination. Risk transfers to importer when goods handed over to first carrier
FOB (Free On Board) specifies delivery obligations and risk transfer under Incoterms. Term only used in non-containerized sea freight and inland waterway transport. FOB port means seller pays to port and loading costs. Risk transfers when goods are loaded on board at port. Ship's rail term dropped from Incoterms 2010
DAP means "Delivered at Place," where seller bears all costs and risks. Works for sea, air, road, and rail freight. Replaced DAF, DES, and DDU Incoterms
Incoterms choice depends on commercial context and parties' bargaining power. Many disputes arise over loading/unloading charges and customs processing. EXW should only be used for domestic sales, not international transactions. Seller or buyer determines main transport responsibility