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Incoterms® 2020

International Commercial Terms - Complete guide to the 11 official Incoterms rules that define responsibilities, costs, and risks between buyers and sellers in international trade.

Official ICC Rules
11 Terms
2020 Edition

What are Incoterms?

Incoterms® (International Commercial Terms) are a set of 11 internationally recognized rules published by the International Chamber of Commerce (ICC). They define the responsibilities of sellers and buyers for the delivery of goods under sales contracts for international trade.

Clear Responsibilities

Define who does what in the transaction

Cost Allocation

Determine who pays for what

Risk Transfer

Specify when risk passes between parties

Incoterms Categories

Any Mode of Transport

These 7 Incoterms can be used regardless of the mode of transport and whether or not more than one mode of transport is used.

  • EXW - Ex Works
  • FCA - Free Carrier
  • CPT - Carriage Paid To
  • CIP - Carriage and Insurance Paid To
  • DAP - Delivered At Place
  • DPU - Delivered At Place Unloaded
  • DDP - Delivered Duty Paid

Sea & Inland Waterway

These 4 Incoterms are specifically designed for sea and inland waterway transport where the point of delivery is a port.

  • FAS - Free Alongside Ship
  • FOB - Free On Board
  • CFR - Cost and Freight
  • CIF - Cost, Insurance and Freight

Interactive Incoterms® Selector

Click on any Incoterm to see detailed responsibilities, cost allocation, and risk transfer visualization.

Detailed Incoterms® 2020 Rules

EXW - Ex Works

Any Mode of Transport

Seller's Obligations

  • Make goods available at seller's premises
  • Package goods appropriately
  • Provide commercial invoice

Buyer's Obligations

  • Pick up goods from seller's location
  • Arrange and pay for all transportation
  • Handle all export/import procedures
  • Bear all costs and risks from pickup

Note: EXW places maximum obligation on the buyer and minimum obligation on the seller.

FCA - Free Carrier

Any Mode of Transport

Seller's Obligations

  • Deliver goods to carrier at named place
  • Complete export clearance
  • Load goods if at seller's premises
  • Provide transport document

Buyer's Obligations

  • Arrange main carriage from named place
  • Complete import clearance
  • Bear costs and risks after delivery

Popular: FCA is one of the most commonly used terms for containerized cargo.

CPT - Carriage Paid To

Any Mode of Transport

Seller's Obligations

  • Deliver goods to carrier
  • Pay transport to named destination
  • Complete export clearance

Buyer's Obligations

  • Take delivery at destination
  • Complete import clearance
  • Arrange insurance (not seller's duty)

CIF - Cost, Insurance and Freight

Sea and Inland Waterway Transport Only

Seller's Obligations

  • Deliver goods on board vessel
  • Pay freight to destination port
  • Provide marine insurance (minimum cover)
  • Complete export clearance

Buyer's Obligations

  • Take delivery at destination port
  • Bear risk from loading port
  • Complete import clearance
  • Unload and pay related costs

Most Popular: CIF is one of the most commonly used Incoterms for sea freight.

FOB - Free On Board

Sea and Inland Waterway Transport Only

Seller's Obligations

  • Deliver goods on board vessel
  • Complete export clearance
  • Bear costs and risks until on board

Buyer's Obligations

  • Arrange and pay for main carriage
  • Arrange insurance
  • Complete import clearance
  • Bear risks from loading

Very Popular: FOB is widely used and well-understood in international sea trade.

DDP - Delivered Duty Paid

Any Mode of Transport

Seller's Obligations

  • Deliver goods to buyer's location
  • Arrange and pay for all transportation
  • Complete export and import clearance
  • Pay all duties and taxes
  • Bear all risks until delivery

Buyer's Obligations

  • Take delivery at named place
  • Unload goods (unless agreed otherwise)

Maximum Obligation: DDP places maximum obligation on the seller and minimum on the buyer - opposite of EXW.

Need Help Choosing the Right Incoterm?

Our logistics experts can guide you in selecting the most appropriate Incoterm for your shipment and explain the implications for costs, risks, and responsibilities.