🚢 Incoterms 2020 Guide

11 standard trade terms defining cost allocation and risk transfer points between seller and buyer in international trade. Select a term to see its logistics process chart.

Multimodal Terms (any mode of transport)

Sea/Inland Waterway Terms Only

EXW

Ex WorksAll Modes

Logistics Process Chart

Cost · SellerRisk · SellerBuyerRisk Transfer

Origin

Origin Factory

Inland Trans

Export Inland Transport

Customs

Export Customs

Port/Terminal

Origin Port

Main Carriage

Main Carriage Air/Sea

Port/Terminal

Destination Port

Customs

Import Customs

Inland Trans

Import Inland Transport

Destination

Final Destination

Cost

BUYER

Risk

Risk Transfer

BUYER

Seller's ObligationBuyer's Obligation

🔴 Risk Transfer Point

When delivered at the seller's premises (factory, warehouse, etc.), placed at the buyer's disposal

📝 Practical Notes

Maximum buyer burden. Buyer handles both export and import customs clearance

✅ Seller (Exporter) Pays

Packing only (prepared at the factory)

📦 Buyer (Importer) Pays

Loading, inland transport, export customs, freight, insurance, import customs, duties — all of it

All 11 Incoterms at a Glance

Click a row to see its chart

Term	Mode	Risk Transfer Point	Key Feature
EXW Ex Works	All	When delivered at the seller's premises (factory, warehouse, etc.), placed at the buyer's disposal	Maximum buyer burden. Buyer handles both export and import customs clearance
FCA Free Carrier	All	Delivered once loaded at the seller's premises, or delivered still on the arriving vehicle at another named place	2020 revision: on-board bill of lading instruction now possible. Own-transport allowed for both seller and buyer
CPT Carriage Paid To	All	Risk transfers on handover to the first carrier / seller pays freight to the destination	Risk and cost transfer at different points (risk: first carrier at origin; cost: destination)
CIP Carriage and Insurance Paid To	All	Risk transfers on handover to the first carrier / seller pays freight and insurance to the destination	2020 revision: minimum insurance coverage raised to the highest level (ICC A), unlike CIF's ICC C
DAP Delivered at Place	All	Delivered at destination, still on the arriving vehicle, ready for unloading	Seller may use own transport. Buyer handles import customs clearance
DPU Delivered at Place Unloaded	All	Delivered at destination, already unloaded from the arriving vehicle	2020 revision: renamed from DAT. Destination no longer limited to a terminal
DDP Delivered Duty Paid	All	On arrival at the named destination (seller bears all costs including import customs and duties)	Maximum seller burden. Seller even covers import customs clearance and duties — the opposite of EXW
FAS Free Alongside Ship	Sea	Delivered alongside the vessel (quay or barge) at the named port of shipment	Mainly used for bulk cargo and heavy machinery. Sea transport only
FOB Free On Board	Sea	When loaded on board the vessel at the named port of shipment	Most commonly used in practice, though FCA is recommended for containerized cargo. Sea transport only
CFR Cost and Freight	Sea	Risk transfers on loading aboard the vessel / seller pays freight to the destination port	Risk transfers at the port of shipment while cost transfers at the port of destination (different transfer points)
CIF Cost Insurance Freight	Sea	Risk transfers on loading aboard the vessel / seller pays freight and insurance to the destination port	Minimum insurance coverage (ICC C) is maintained, unlike CIP's ICC A. Basis for import declaration tax valuation

Based on: Incoterms® 2020 (ICC)