Incoterms® 2020 guide
See in one table how the rule chosen in a sales contract splits transport and cost responsibility.
| Rule | Risk passes to the buyer | Main carriage paid by | Export clearance | Import clearance/duty | Insurance |
|---|---|---|---|---|---|
| EXW | At the seller's premises when goods are made available (not loaded) | Buyer | Buyer | Buyer | Not required |
| FCA | On delivery to the buyer's carrier at the named place | Buyer | Seller | Buyer | Not required |
| CPT | On delivery to the first carrier | Seller | Seller | Buyer | Not required |
| CIP | On delivery to the first carrier | Seller | Seller | Buyer | Seller, ICC (A) |
| DAP | At destination, on the vehicle ready for unloading | Seller | Seller | Buyer | Not required |
| DPU | At destination once unloaded | Seller | Seller | Buyer | Not required |
| DDP | At destination, on the vehicle ready for unloading | Seller | Seller | Seller | Not required |
| FAS | Alongside the ship at the port of shipment | Buyer | Seller | Buyer | Not required |
| FOB | On board the ship at the port of shipment | Buyer | Seller | Buyer | Not required |
| CFR | On board the ship at the port of shipment | Seller | Seller | Buyer | Not required |
| CIF | On board the ship at the port of shipment | Seller | Seller | Buyer | Seller, ICC (C) |
How is it calculated?
The table is a summary in our own words; the binding text is the International Chamber of Commerce (ICC) Incoterms® 2020 rules. Incoterms® is a registered trademark of the ICC.
Assumptions
- The first seven rules suit any mode of transport; FAS, FOB, CFR and CIF are for sea and inland waterway only.
Frequently asked questions
What is the difference between FOB and FCA?
Under FOB risk passes when the goods are loaded on board and it is for sea only; for containers, where risk passes on delivery at the terminal, FCA is recommended.
Is CIF insurance the same as CIP?
No. Under the 2020 rules CIF requires at least ICC (C) cover, CIP the wider ICC (A) cover.
Updated: 2026-10-16 · Depom Ltd
