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Incoterms® 2020 quick guide

Compare cost responsibilities and risk transfer across all 11 Incoterms® 2020 rules.

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Choose an Incoterm

Any mode of transport

Sea and inland waterway only

Rule comparison

EXW

Ex Works

Any mode

Selected
Plain-language summary
The seller makes goods available at the named premises; the buyer manages nearly all transport steps.
Seller responsibilities
Package and make the goods available at the named place.
Buyer responsibilities
Load, export, transport, insure if desired, import, and deliver.
Risk transfers
When the goods are placed at the buyer’s disposal, not loaded.
Insurance
No mandatory insurance obligation.
Export clearance
Buyer, with seller assistance where required.
Import clearance
Buyer.
Main carriage
Buyer.
Practical note
The buyer may face practical export-clearance difficulties in the seller’s country.
FCA

Free Carrier

Any mode

Selected
Plain-language summary
The seller delivers export-cleared goods to the carrier or person nominated by the buyer at the named place.
Seller responsibilities
Package, clear for export, and deliver to the nominated carrier or place.
Buyer responsibilities
Arrange main carriage, insurance if desired, import, and onward delivery.
Risk transfers
When delivery to the nominated carrier or person is completed at the named place.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Buyer.
Practical note
Often more suitable than FOB for containerized shipments.
CPT

Carriage Paid To

Any mode

Selected
Plain-language summary
The seller pays carriage to the named destination, but risk transfers earlier when goods reach the first carrier.
Seller responsibilities
Package, clear for export, hand goods to the carrier, and pay carriage to destination.
Buyer responsibilities
Bear transit risk after first-carrier delivery, insure if desired, import, and unload unless agreed.
Risk transfers
When the seller hands the goods to the first carrier.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller pays.
Practical note
The cost destination and risk-transfer point are different places.
CIP

Carriage and Insurance Paid To

Any mode

Selected
Plain-language summary
The seller pays carriage and specified insurance to destination; risk transfers at the first carrier.
Seller responsibilities
Clear for export, deliver to the first carrier, and pay carriage plus required insurance.
Buyer responsibilities
Bear risk after carrier delivery, import, and handle destination steps not included.
Risk transfers
When the seller hands the goods to the first carrier.
Insurance
Seller obtains cargo insurance with the coverage required by CIP.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller pays.
Practical note
Check policy scope, insured value, exclusions, and claims process.
DAP

Delivered at Place

Any mode

Selected
Plain-language summary
The seller brings goods to the named destination ready for unloading; the buyer handles import clearance.
Seller responsibilities
Arrange export and carriage to the named destination, ready for unloading.
Buyer responsibilities
Unload, clear for import, and pay import duty and tax.
Risk transfers
At the named destination when goods are ready for unloading.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller.
Practical note
Name the exact delivery point and confirm who can manage destination access.
DPU

Delivered at Place Unloaded

Any mode

Selected
Plain-language summary
The seller delivers and unloads goods at the named destination; the buyer handles import clearance.
Seller responsibilities
Arrange export, carriage, and unloading at the named destination.
Buyer responsibilities
Clear for import and pay import duty and tax.
Risk transfers
After the goods are unloaded at the named destination.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller.
Practical note
Confirm the destination has suitable unloading equipment and access.
DDP

Delivered Duty Paid

Any mode

Selected
Plain-language summary
The seller delivers goods ready for unloading after handling export and import formalities and charges.
Seller responsibilities
Arrange carriage, export, import clearance, duties, taxes, and delivery.
Buyer responsibilities
Receive and unload the goods unless otherwise agreed.
Risk transfers
At the named destination when goods are ready for unloading.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Seller.
Main carriage
Seller.
Practical note
The seller must be legally and practically able to act as importer where required.
FAS

Free Alongside Ship

Sea and inland waterway

Selected
Plain-language summary
The seller places export-cleared goods alongside the buyer’s nominated vessel at the shipment port.
Seller responsibilities
Deliver alongside the vessel and clear the goods for export.
Buyer responsibilities
Load aboard, arrange sea carriage, insure if desired, and import.
Risk transfers
When goods are placed alongside the vessel at the named shipment port.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Buyer.
Practical note
Designed mainly for bulk or non-containerized port deliveries.
FOB

Free on Board

Sea and inland waterway

Selected
Plain-language summary
The seller places export-cleared goods on board the buyer’s nominated vessel at the shipment port.
Seller responsibilities
Clear for export and load the goods on the nominated vessel.
Buyer responsibilities
Arrange sea carriage, insurance if desired, import, and destination delivery.
Risk transfers
When the goods are on board the vessel at the named shipment port.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Buyer.
Practical note
FCA is often more appropriate when containers are handed to a terminal before loading.
CFR

Cost and Freight

Sea and inland waterway

Selected
Plain-language summary
The seller pays sea freight to destination, while risk transfers once goods are aboard at shipment.
Seller responsibilities
Clear for export, load aboard, and pay freight to the named destination port.
Buyer responsibilities
Bear voyage risk, insure if desired, import, and arrange destination delivery.
Risk transfers
When the goods are on board the vessel at the shipment port.
Insurance
No mandatory insurance obligation.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller pays.
Practical note
Do not confuse the destination named for cost with the earlier risk-transfer port.
CIF

Cost, Insurance and Freight

Sea and inland waterway

Selected
Plain-language summary
The seller pays sea freight and required insurance to destination; risk transfers on board at shipment.
Seller responsibilities
Clear for export, load aboard, and pay freight plus required insurance.
Buyer responsibilities
Bear voyage risk subject to insurance, import, and arrange destination delivery.
Risk transfers
When the goods are on board the vessel at the shipment port.
Insurance
Seller obtains cargo insurance with the coverage required by CIF.
Export clearance
Seller.
Import clearance
Buyer.
Main carriage
Seller pays.
Practical note
Confirm whether the standard minimum insurance cover is sufficient for the goods.

General reference only; not legal, contractual, customs, or logistics advice. Incoterms® is a registered trademark of the International Chamber of Commerce. FirmaPanel is not affiliated with or endorsed by the ICC.

Use the named place precisely

An Incoterm should be paired with a specific named place or port. Cost responsibility and the point where risk transfers are separate questions.

Contract wording matters

State the chosen three-letter rule, the precise named place or port, and “Incoterms® 2020” in the contract.

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Frequently asked questions

No. The guide is a general reference and is not legal, contractual, customs, or logistics advice. Consult the ICC rules and qualified professionals when preparing a contract.

No. Calculations run in your browser. FirmaPanel does not receive or store the dimensions, prices, quantities, selections, or results you enter.
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