Delivery point
Agreed place in the sales contract where the seller makes goods available to the buyer or carrier, determining the transfer of risks and costs.
Definition and principle
The delivery point is the precise geographical location where, according to the chosen Incoterm, the seller fulfils their delivery obligation. It is at this point that the transfer of risks from seller to buyer occurs. The precise determination of the delivery point is essential as it determines who bears the risks of loss or damage to goods beyond this point.
Legal framework
Incoterms 2020 from the International Chamber of Commerce (ICC) define 11 commercial terms, each specifying a different delivery point. The United Nations Convention on Contracts for the International Sale of Goods (CISG, Vienna 1980) complements the framework regarding delivery obligations. Incoterms are not laws but contractual rules that apply when parties refer to them in their contract.
Delivery points under Incoterms 2020
- EXW: seller's premises (factory, warehouse)
- FCA: named place (seller's premises or other designated place)
- FAS/FOB: port of shipment (alongside ship / on board the vessel)
- CPT/CIP/CFR/CIF: the delivery point is at departure (handed to the first carrier or placed on board), but the seller pays transport to destination
- DAP/DPU/DDP: named place of destination
Practical importance
- The delivery point determines the moment of risk transfer — insurance must be calibrated accordingly
- It affects customs value: transport costs included in customs value depend on the Incoterm and delivery point
- An imprecise specification of the delivery point is a source of disputes — always specify the exact address, terminal, quay