GlossaryEN1 min readUpdated: Jun 13, 2026

cost transfer point

The cost transfer point establishes precisely when each party becomes responsible for specific transport, shipping, or ancillary costs.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms-rules/

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Definition & Explanation

The cost transfer point establishes precisely when each party becomes responsible for specific transport, shipping, or ancillary costs. It marks the boundary between supplier responsibility and buyer liability: from the agreed moment, the receiving party bears all cost-related decisions, billing, and associated risks (freight, customs clearance, storage). The cost transfer point often, but not always, coincides with the risk transfer moment – for example, a clause may stipulate that the seller covers transport costs to a certain border while risk has already shifted to the buyer. In practice, this point is governed by Incoterms or separate cost provisions in the sales contract.

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cost transfer point

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Related Terms

Cost Transfer Incoterms

Transfer point

CIF cost transfer

CIF practice error

FCA cost transfer

EXW (Ex Works) Cost Transfer

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