Incoterms® 2020 explorer
Pick an Incoterms® 2020 rule to see who arranges and pays for each step of the journey, who has to insure the cargo and the point where risk passes from seller to buyer. Compare two rules to see exactly where they differ.
Select a rule to see who does what.
All 11 rules at a glance
- Seller
- Buyer
- Depends
- Not required
| Step | EXWEx Works | FCAFree Carrier | FASFree Alongside Ship | FOBFree On Board | CFRCost and Freight | CIFCost, Insurance and Freight | CPTCarriage Paid To | CIPCarriage and Insurance Paid To | DAPDelivered at Place | DPUDelivered at Place Unloaded | DDPDelivered Duty Paid |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Loading at the seller's premises | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Transport to the port or terminal of departure | Buyer | Depends | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Export clearance and export duties | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Origin terminal handling and loading onto the vessel or main carrier | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Main carriage (freight to destination) | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Cargo insurance the rule requires | Not required | Not required | Not required | Not required | Not required | Seller | Not required | Seller | Not required | Not required | Not required |
| Port or terminal charges at destination | Buyer | Buyer | Buyer | Buyer | Depends | Depends | Depends | Depends | Seller | Seller | Seller |
| Carriage from the arrival port to the final place | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller |
| Unloading at the final place | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Depends | Depends | Buyer | Seller | Buyer |
| Import clearance, duties and taxes | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Steps for the seller · buyer · depends | 0 · 9 · 0 | 2 · 6 · 1 | 3 · 6 · 0 | 4 · 5 · 0 | 5 · 3 · 1 | 6 · 3 · 1 | 6 · 1 · 2 | 7 · 1 · 2 | 7 · 2 · 0 | 8 · 1 · 0 | 8 · 1 · 0 |
Hover or focus a cell for its note, or select a rule above to read the notes in full. “Depends” means the answer turns on the named place or the contract of carriage.
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What the labels mean.
- Seller or buyer: the party that normally performs and pays for that step under the rule.
- Depends: the answer turns on the named place or on the contract of carriage, so read the note before you rely on it.
- Not required: the rule puts no obligation on either party, which is true of insurance under most rules.
- Risk is not the same as cost: risk passes at the delivery point, while the freight can be paid by the other party.
- The named place is part of the rule. Always write it after the code, for example FCA Jacksonville.
A seller in Miami and a buyer in Nassau agree FOB Miami. The seller loads the goods on board the vessel at Miami and clears them for export, and risk passes to the buyer at that moment. The buyer pays the ocean freight, arranges insurance, clears the goods into the Bahamas and pays any duties and taxes. Under CIF Miami the seller would also pay the freight and buy basic insurance, but risk would still pass to the buyer on board at Miami.
Assumptions and limits
- This is a plain-language summary for orientation. The official ICC Incoterms® 2020 rules, and your contract, decide the parties' rights and duties.
- Incoterms rules cover delivery, risk and costs. They do not transfer ownership, set payment terms or decide what happens if the contract is broken.
- Where you see Depends, the answer turns on the named place or on the contract of carriage. Agree those details in writing.
- The sea-only rules (FAS, FOB, CFR, CIF) are meant for goods loaded on board a ship. For containers, the rules that hand over at a terminal or carrier (FCA, CPT, CIP) fit how the goods really move.
- Incoterms® is a registered trademark of the International Chamber of Commerce. Intelicargo is not affiliated with the ICC.
Common questions
What are the 11 Incoterms 2020 rules?
Seven rules work for any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four are for sea and inland waterway transport only: FAS, FOB, CFR and CIF.
What is the difference between FOB and CIF?
Under both rules the seller delivers the goods on board the vessel at the port of shipment, and risk passes to the buyer there. Under CIF the seller also pays the sea freight to the destination port and buys minimum insurance for the buyer. Under FOB the buyer arranges and pays for both.
Which Incoterm should I use for container shipping?
The sea-only rules (FAS, FOB, CFR, CIF) are meant for goods loaded on board a ship, such as bulk and break-bulk cargo. For containers, the rules that hand over at a terminal or carrier (FCA, CPT, CIP) fit the way the goods really move.
Who pays for import duty and taxes?
The buyer, under every rule except DDP. Under DDP the seller clears the goods for import and pays the duties and taxes.
Who has to insure the cargo?
Only two rules oblige the seller to insure: CIF, to at least the Institute Cargo Clauses (C) level, and CIP, to at least the (A) level, both for the buyer's benefit. Under the other rules neither party must insure for the other, although whoever carries the risk usually should.
What changed in Incoterms 2020?
DAT became DPU, CIP now requires broader insurance cover than CIF, FCA lets the parties agree an on-board bill of lading for sea shipments, the rules recognise that either party may move the goods in its own vehicles, and security-related costs are set out more clearly.
Do Incoterms rules transfer ownership of the goods?
No. They deal with delivery, risk and costs. Ownership, payment and remedies are settled by your sales contract and the governing law.
Quote and bill on one shipment record.
Intelicargo carries the cargo, charges and documents from quote to invoice, so the terms you agree stay attached to the booking.