Incoterms 2020 — full reference for all 11 rules
A printable, one-page reference for the eleven Incoterms® 2020 rules published by the International Chamber of Commerce. For each term you get the mode of transport it applies to, where cost transfers from seller to buyer, where risk transfers, who handles export and import clearance, and who is required to arrange insurance. Use it as a quick check before drafting a sale-of-goods contract or signing off a freight quote. Not legal advice — for binding contracts, refer to the ICC publication "Incoterms® 2020".
All 11 terms — risk & cost transfer matrix
Hover or scroll horizontally on mobile. The four "sea-only" terms (FAS, FOB, CFR, CIF) must not be used for containerised cargo handed to the carrier inland — for that, use FCA, CPT or CIP.
| Term | Mode | Point of delivery | Cost transfers | Risk transfers | Export clearance | Import clearance | Insurance required |
|---|---|---|---|---|---|---|---|
| EXW | Any | Seller's premises | At seller's premises | At seller's premises | Buyer | Buyer | Neither (buyer's choice) |
| FCA | Any | Named place (carrier) | On delivery to named carrier | On delivery to named carrier | Seller | Buyer | Neither |
| CPT | Any | Named destination (paid) | At named destination | On delivery to first carrier | Seller | Buyer | Neither (buyer's choice) |
| CIP | Any | Named destination (paid + insured) | At named destination | On delivery to first carrier | Seller | Buyer | Seller — ICC (A) all-risks |
| DAP | Any | Named destination, on vehicle, not unloaded | At named destination, not unloaded | At named destination, not unloaded | Seller | Buyer | Neither (seller's choice) |
| DPU | Any | Named destination, unloaded | At named destination, unloaded | At named destination, unloaded | Seller | Buyer | Neither (seller's choice) |
| DDP | Any | Named destination, customs cleared, not unloaded | At named destination | At named destination | Seller | Seller | Neither (seller's choice) |
| FAS | Sea / inland waterway | Alongside vessel at port of shipment | Alongside vessel at port | Alongside vessel at port | Seller | Buyer | Neither |
| FOB | Sea / inland waterway | On board vessel at port of shipment | On board vessel at port | On board vessel at port | Seller | Buyer | Neither |
| CFR | Sea / inland waterway | Port of destination (paid) | At port of destination | On board vessel at port of shipment | Seller | Buyer | Neither |
| CIF | Sea / inland waterway | Port of destination (paid + insured) | At port of destination | On board vessel at port of shipment | Seller | Buyer | Seller — ICC (C) min cover |
Per-term explanation
All 11 terms in publication order: 7 multi-modal first, then 4 sea-only.
Ex Works
Seller makes the goods available at their own premises (factory, warehouse). Buyer collects, arranges all transport, export clearance and import clearance. Maximum obligation on buyer; sellers often cannot prove export with EXW, which can cause VAT/customs issues — for cross-border trade, FCA is usually the better fit.
Free Carrier
Seller delivers the goods, cleared for export, to the carrier (or another person) nominated by the buyer at the named place. If the named place is the seller's premises, seller loads the truck; if elsewhere (e.g. a terminal), seller delivers but does not unload. The 2020 revision added an option for the carrier to issue an on-board B/L back to the seller — useful with letters of credit.
Carriage Paid To
Seller arranges and pays for carriage to the named destination, but risk transfers as soon as the goods are handed to the first carrier. Buyer should consider their own insurance because seller has no obligation to arrange one. Common when seller has good freight rates but doesn't want destination-side risk.
Carriage and Insurance Paid To
Like CPT, but seller must also arrange marine cargo insurance with the highest cover — Institute Cargo Clauses (A), per the 2020 update — for the buyer's benefit. Risk still transfers at handover to the first carrier. The insurance must cover at least 110% of the contract value, place of delivery to named destination.
Delivered at Place
Seller delivers goods to the named destination, ready for unloading from the arriving means of transport. Seller bears all risks and costs of bringing the goods to that place. Buyer handles unloading and import clearance. Equivalent to old DAT/DDU role.
Delivered at Place Unloaded
New name (since 2020) for what used to be DAT. Seller delivers and unloads at the named place — the only Incoterm that makes the seller responsible for unloading. Use only when the seller is genuinely able to organise unloading at destination; otherwise DAP is safer.
Delivered Duty Paid
Seller delivers goods to the named destination, cleared for import, ready for unloading. Maximum obligation on seller — they pay duty, taxes and clearance fees in the buyer's country. Risky for sellers who don't have a presence in the importing country; often handled via a forwarder acting as IOR (Importer of Record).
Free Alongside Ship
Seller delivers when goods are placed alongside the vessel (e.g. on a quay or barge) at the named port of shipment. Risk and costs transfer at that moment. Mostly used for break-bulk and bulk cargo (commodities) — never for containers, because containers are usually handed over at a terminal before being placed alongside.
Free On Board
Seller delivers goods on board the vessel at the named port of shipment. Risk and costs transfer when the goods are on board. Heavily used in commodity trades and small-volume containerised exports, but ICC explicitly recommends FCA instead for containers — once a container is at a terminal, the seller often loses control before "on board" is reached.
Cost and Freight
Seller arranges and pays sea freight to the named destination port, but risk transfers when goods are loaded on board at origin — same risk-transfer point as FOB. Buyer arranges insurance. Common in commodities. For containers, CPT is the modern equivalent.
Cost, Insurance and Freight
Like CFR, plus seller must arrange marine insurance — minimum cover only, Institute Cargo Clauses (C), per the 2020 update. The minimum-cover requirement is a frequent source of dispute; if higher cover is wanted, write it into the contract or use CIP. Risk transfers on board at origin port, even though seller pays insurance.
Common mistakes
- Using FOB for containerised freight. Containers are typically handed over at a terminal — sometimes days before they are loaded on board. Under FOB, risk only transfers when the container is on board, so the seller bears risk during a period when they have already lost physical control. ICC has recommended using FCA instead for containers since 2010, but FOB persists by inertia and letter-of-credit habits.
- Confusing CFR/CIF with risk-transfer at destination. Buyers often assume that because the seller pays freight to the destination port, risk also transfers there. It does not. Risk transfers when the goods are loaded on board at origin. A buyer with no insurance under CFR can find themselves owning damaged cargo that the seller's freight contract paid to deliver.
- DDP without a presence in the import country. DDP requires the seller to handle import clearance, pay VAT and pay any duties. Many countries restrict who can be the Importer of Record, and a non-resident seller may not be able to reclaim VAT. Check the country first; otherwise the seller's "DDP" quote silently means hiring a third party as IOR — at unforeseen cost.
- EXW without proof of export. Under EXW the buyer arranges export. The seller often cannot get a stamped export declaration back, which causes VAT problems in the EU (no zero-rating without export proof). FCA at the seller's premises is almost always a better choice.
- Naming the place too vaguely. "FCA Rotterdam" is ambiguous — Rotterdam port is large. Use specific terminals or addresses ("FCA APMT Maasvlakte II, Rotterdam"). Same applies to DAP, DPU, DDP, CPT, CIP — the named place determines cost and risk, so it should be unambiguous.
- Missing the contract's reference to the rules. Always cite "Incoterms 2020" explicitly in the contract — e.g. "FCA Rotterdam Incoterms 2020". Without that reference, an arbitrator may apply Incoterms 2010, the local commercial code, or contested case law.
Frequently asked questions
What are Incoterms 2020?
Incoterms 2020 are 11 three-letter trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international and domestic sale of goods. They specify which party arranges and pays for transport, insurance and customs clearance, and at what point risk transfers from seller to buyer. The 2020 revision is the ninth update; it superseded Incoterms 2010 on 1 January 2020.
What is the difference between FOB and CIF?
Both apply only to sea and inland waterway transport. Under FOB (Free On Board), risk transfers when the goods are placed on board the vessel at the named port of shipment, and the buyer pays main carriage and insurance. Under CIF (Cost, Insurance and Freight), the seller arranges and pays for sea freight to the named destination port and minimum-cover marine insurance, but risk still transfers when goods are loaded on board at origin — so the seller pays for freight and insurance the buyer is exposed to during.
What changed between Incoterms 2010 and Incoterms 2020?
Three notable changes: (1) DAT (Delivered At Terminal) was renamed DPU (Delivered at Place Unloaded) and now allows delivery at any place, not only a terminal. (2) FCA now allows the buyer to instruct their carrier to issue an on-board bill of lading to the seller, solving a long-standing letter-of-credit problem. (3) CIP now requires Institute Cargo Clauses (A) — the highest cover — instead of (C); CIF still only requires (C).
Can Incoterms be used for domestic shipments?
Yes. While Incoterms were designed for cross-border trade, they are explicitly intended to be usable for domestic sales contracts as well, and many countries reference them in B2B contracts to clarify delivery and risk allocation. However, the export and import clearance obligations only apply where there is an actual border crossing.
Which Incoterm should I use?
Pick based on (a) mode of transport — four terms (FAS, FOB, CFR, CIF) only work for sea freight; the other seven work for any mode including containerised sea — and (b) where you want risk to transfer. Sellers who want to retain control of main carriage but minimise risk exposure typically use CPT or CIP. Buyers who want supplier-managed delivery to their door use DAP, DPU or DDP. EXW transfers everything to the buyer at the seller's premises and is rarely a good fit for international trade because the seller cannot easily prove export.
Incoterms® is a registered trademark of the International Chamber of Commerce. The official reference is the ICC publication "Incoterms® 2020", available from the ICC at iccwbo.org. This page summarises the rules for orientation; it is not a legal substitute for the official text.
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