Interactive Incoterms® 2020 Explorer 11 Standard Rules
Select any trade term to see where risk passes, who arranges and pays for carriage, who insures, and who clears export and import.
Incoterms® 2020 at a glance
| Rule | Full name | Mode | Risk passes to buyer |
|---|---|---|---|
| EXW | Ex Works | Any | When goods are made available at the seller's premises |
| FCA | Free Carrier | Any | When goods are handed to the buyer's carrier |
| CPT | Carriage Paid To | Any | When goods are handed to the first carrier |
| CIP | Carriage and Insurance Paid To | Any | When goods are handed to the first carrier |
| DAP | Delivered at Place | Any | At the named destination, ready for unloading |
| DPU | Delivered at Place Unloaded | Any | At the named destination, after unloading |
| DDP | Delivered Duty Paid | Any | At the named destination, import cleared |
| FAS | Free Alongside Ship | Sea | When goods are alongside the vessel |
| FOB | Free On Board | Sea | When goods are on board the vessel |
| CFR | Cost and Freight | Sea | When goods are on board the vessel |
| CIF | Cost, Insurance and Freight | Sea | When goods are on board the vessel |
Under the C-rules (CPT, CIP, CFR, CIF) the seller pays the main carriage, but risk passes to the buyer much earlier, at shipment. This split between cost and risk is the most common source of disputes.
Frequently asked questions
How many Incoterms® 2020 rules are there?
There are 11 Incoterms® 2020 rules: seven for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway only (FAS, FOB, CFR, CIF).
What changed in Incoterms® 2020?
DAT was renamed DPU, CIP now requires all-risks insurance (Institute Cargo Clauses A) while CIF still requires only minimum cover (Clauses C), FCA allows an on-board bill of lading, and security and transport costs are allocated more clearly.
Should I use FOB or FCA for container shipments?
The ICC recommends FCA for containerised cargo, because the seller normally hands containers to the carrier at a terminal before they are loaded on board. FOB fits bulk and break-bulk cargo loaded directly onto the vessel.
Who pays import duty under Incoterms?
The buyer pays import duties and clearance under every rule except DDP, where the seller must clear the goods for import and pay the duties and taxes.
Are Incoterms 2010 still valid?
Yes, if the contract says so. Incoterms® 2020 became the current edition on 1 January 2020, but parties can still agree to use an earlier version by naming it in the contract, for example “FOB Alexandria Incoterms® 2010”.
Next steps: estimate what each rule costs you in the landed cost calculator, or check payment terms in the documentary credits workbench. Incoterms® is a trademark of the International Chamber of Commerce.