Customs Terms: Delivery and Payment Methods Explained

International trade documents use delivery and payment terms to define responsibilities between buyers and sellers.

Delivery terms

Incoterms rules such as EXW, FCA, CPT, CIP, DAP, DPU and DDP are widely used to define transport, cost and risk responsibilities. Sea-specific terms include FAS, FOB, CFR and CIF.

Common payment methods

• Advance payment
• Open account
• Documentary collection
• Letter of credit

The selected term should match the sales contract and shipping documents. For a live transaction, confirm current customs and banking requirements with your broker, bank and logistics provider.