Incoterms® 2020 Guide
Interactive table of the 11 Incoterms: who pays and who bears the risk at each stage.
Trade Tools › Incoterms® 2020 Guide
Select a row to see where the risk passes. Seller = cost paid by the seller; Buyer = cost paid by the buyer; Depends = depends on the contract of carriage or the named place.
EXW · Ex Works
Risk passes when the goods are made available at the seller's premises, not loaded. The buyer handles almost everything, including export clearance.
FCA · Free Carrier
Risk passes when the goods are handed to the buyer's carrier at the named place. The seller clears export. Often the best choice for containers instead of FOB.
FAS · Free Alongside Ship
Risk passes when the goods are placed alongside the vessel at the port of shipment. Mainly used for bulk and heavy cargo.
FOB · Free On Board
Risk passes when the goods are on board the vessel at the port of shipment. The buyer pays the ocean freight and everything after it.
CFR · Cost and Freight
The seller pays the freight to the destination port, but the risk passes when the goods are on board at origin.
CIF · Cost, Insurance and Freight
Like CFR, plus the seller buys minimum insurance (Institute Cargo Clauses C) for the buyer. Risk passes on board at origin.
CPT · Carriage Paid To
The seller pays carriage to the named destination, but the risk passes when the goods are handed to the first carrier.
CIP · Carriage and Insurance Paid To
Like CPT, plus the seller buys broad insurance (Institute Cargo Clauses A). Risk passes to the buyer at the first carrier.
DAP · Delivered at Place
The seller delivers to the named place, ready for unloading. The buyer unloads and handles import clearance, duties and taxes.
DPU · Delivered at Place Unloaded
The seller delivers and unloads at the named place. The only term where the seller must unload. Import clearance is for the buyer.
DDP · Delivered Duty Paid
The seller delivers to the named place cleared for import, with duties and taxes paid. Maximum obligation for the seller.
| Incoterm | Mode | Export packing | Loading at seller's premises | Export clearance | Transport to port / terminal | Origin terminal & loading on vessel | Main carriage (sea / air) | Cargo insurance | Destination terminal & unloading | Delivery to final place | Import clearance, duties & taxes |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EXWEx Works | Any mode | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FCAFree Carrier | Any mode | Seller | Seller | Seller | Depends | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FASFree Alongside Ship | Sea / inland waterway | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FOBFree On Board | Sea / inland waterway | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer |
| CFRCost and Freight | Sea / inland waterway | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Depends | Buyer | Buyer |
| CIFCost, Insurance and Freight | Sea / inland waterway | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Depends | Buyer | Buyer |
| CPTCarriage Paid To | Any mode | Seller | Seller | Seller | Seller | Seller | Seller | Buyer | Depends | Seller | Buyer |
| CIPCarriage and Insurance Paid To | Any mode | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Depends | Seller | Buyer |
| DAPDelivered at Place | Any mode | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer |
| DPUDelivered at Place Unloaded | Any mode | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Buyer |
| DDPDelivered Duty Paid | Any mode | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
Incoterms® is a trademark of the International Chamber of Commerce (ICC). Simplified summary for guidance; always check the ICC Incoterms® 2020 rules and your contract.
Need exact numbers for your shipment?
Not sure which Incoterm suits you? We quote EXW, FOB, CIF or DDP and explain the difference.