Incoterms 2020 at a glance
Eleven rules, one question each: who pays for every step of the journey, and at what point the risk passes from seller to buyer. Read across a row to see your rule.
SSeller paysBBuyer paysRisk passes to the buyer here
Scroll sideways to see all steps.| Export packing | Loading at origin | Pre-carriage | Export clearance | Origin terminal | Loading on vessel | Main carriage | Insurance | Destination terminal | On-carriage | Unloading at destination | Import clearance and duties | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Any mode of transport | ||||||||||||
| EXWEx Works | S | B | B | B | B | B | B | B | B | B | B | B |
| FCAFree Carrier | S | S | S | S | B | B | B | B | B | B | B | B |
| CPTCarriage Paid To | S | S | S | S | S | S | S | B | B | B | B | B |
| CIPCarriage and Insurance Paid To | S | S | S | S | S | S | S | S | B | B | B | B |
| DAPDelivered at Place | S | S | S | S | S | S | S | B | S | S | B | B |
| DPUDelivered at Place Unloaded | S | S | S | S | S | S | S | B | S | S | S | B |
| DDPDelivered Duty Paid | S | S | S | S | S | S | S | B | S | S | B | S |
| Sea and inland waterway only | ||||||||||||
| FASFree Alongside Ship | S | S | S | S | S | B | B | B | B | B | B | B |
| FOBFree on Board | S | S | S | S | S | S | B | B | B | B | B | B |
| CFRCost and Freight | S | S | S | S | S | S | S | B | B | B | B | B |
| CIFCost, Insurance and Freight | S | S | S | S | S | S | S | S | B | B | B | B |
Insurance is compulsory only under CIP (all risks, ICC A) and CIF (minimum cover, ICC C). Under every other rule it is a commercial choice.
DAP and DDP: delivered ready for unloading, unloading costs fall on the buyer. DPU: the seller also unloads.
Our advice for project cargo
Avoid EXW for exportThe buyer must clear export in the seller's country, which they often cannot do legally. FCA at the seller's premises fixes it.
FCA, not FOB, for containersA container is handed to the carrier at the terminal, not over the ship's rail. FOB leaves the seller carrying risk for cargo they no longer control.
Whoever books the ship controls the scheduleUnder FOB the buyer charters; under CFR or CIF the seller does. On a heavy-lift move that choice decides who controls dates, costs and stowage.
Name the place precisely"FCA Abu Dhabi" is not enough. Write the terminal or address: that line decides where cost and risk change hands.
Not sure which rule fits your project?
Send us the scope. We'll tell you which Incoterm keeps cost and risk where you want them.
Incoterms® is a registered trademark of the International Chamber of Commerce. This chart is a simplified guide: the ICC rules text prevails.