Trade Reference
Incoterms 2020 Selector
Incoterms 2020 are the standard international trade rules that define which party — buyer or seller — is responsible for transport, insurance, customs clearance and risk at each stage of a shipment. Filter by transport mode below to see only the relevant rules.
EXW — Ex Works
Any mode of transport- Risk transfers to buyer
- At the seller's premises, once the goods are made available to the buyer.
- Main carriage arranged by
- Buyer arranges all transport from the seller's premises onward.
- Insurance
- Not required of either party by the rule; buyer typically arranges if desired.
- Import clearance / duties
- Buyer (seller has minimum obligation — does not even handle export clearance).
Buyer vs seller
Falls to buyer
2 items
Falls to seller
0 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
FCA — Free Carrier
Any mode of transport- Risk transfers to buyer
- When the goods are handed to the carrier nominated by the buyer, at the named place.
- Main carriage arranged by
- Buyer arranges and pays for the main carriage.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
2 items
Falls to seller
0 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
FAS — Free Alongside Ship
Sea & inland waterway only- Risk transfers to buyer
- When the goods are placed alongside the vessel at the named port of shipment.
- Main carriage arranged by
- Buyer arranges and pays for loading and the main sea carriage.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
2 items
Falls to seller
0 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
FOB — Free On Board
Sea & inland waterway only- Risk transfers to buyer
- When the goods are loaded on board the vessel at the named port of shipment.
- Main carriage arranged by
- Buyer arranges and pays for the main sea carriage.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
2 items
Falls to seller
0 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
CFR — Cost and Freight
Sea & inland waterway only- Risk transfers to buyer
- When the goods are loaded on board the vessel at the port of shipment (same point as FOB), even though the seller pays freight further.
- Main carriage arranged by
- Seller pays freight to the named port of destination.
- Insurance
- Not required of either party by the rule; buyer bears the risk during the voyage and typically insures.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
1 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
CIF — Cost, Insurance and Freight
Sea & inland waterway only- Risk transfers to buyer
- When the goods are loaded on board the vessel at the port of shipment (same point as FOB/CFR).
- Main carriage arranged by
- Seller pays freight to the named port of destination.
- Insurance
- Seller must arrange cargo insurance for the buyer, but only at the Incoterms minimum cover level (Institute Cargo Clauses C or equivalent) unless the parties agree otherwise.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
2 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
CPT — Carriage Paid To
Any mode of transport- Risk transfers to buyer
- When the goods are handed to the first carrier, even though the seller pays carriage further to the named destination.
- Main carriage arranged by
- Seller arranges and pays carriage to the named place of destination.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
1 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
CIP — Carriage and Insurance Paid To
Any mode of transport- Risk transfers to buyer
- When the goods are handed to the first carrier, even though the seller pays carriage and insurance further to the named destination.
- Main carriage arranged by
- Seller arranges and pays carriage to the named place of destination.
- Insurance
- Seller must arrange cargo insurance for the buyer at a higher level of cover (Institute Cargo Clauses A or equivalent, i.e. broader "all risks" cover) unless the parties agree otherwise.
- Import clearance / duties
- Buyer (seller handles export clearance).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
2 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
DAP — Delivered at Place
Any mode of transport- Risk transfers to buyer
- When the goods are made available to the buyer, ready for unloading, on the arriving means of transport at the named destination.
- Main carriage arranged by
- Seller arranges and pays carriage to the named place of destination.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (unloading and import clearance/duties are the buyer's responsibility).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
1 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
DPU — Delivered at Place Unloaded
Any mode of transport- Risk transfers to buyer
- When the goods are unloaded from the arriving means of transport at the named place of destination.
- Main carriage arranged by
- Seller arranges and pays carriage to the named place of destination, and is also responsible for unloading — the only Incoterm requiring the seller to unload.
- Insurance
- Not required of either party by the rule.
- Import clearance / duties
- Buyer (import clearance and duties are the buyer's responsibility).
Buyer vs seller
Falls to buyer
1 items
Falls to seller
1 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
DDP — Delivered Duty Paid
Any mode of transport- Risk transfers to buyer
- When the goods are made available to the buyer, ready for unloading, at the named place of destination, cleared for import.
- Main carriage arranged by
- Seller arranges and pays carriage to the named place of destination — maximum obligation for the seller of all 11 rules.
- Insurance
- Not required of either party by the rule; seller typically insures given they bear the risk.
- Import clearance / duties
- Seller (seller also pays import duties and taxes; buyer is only responsible for unloading).
Buyer vs seller
Falls to buyer
0 items
Falls to seller
2 items
Counts the main carriage, insurance and import clearance responsibilities listed above for this rule.
Note
Frequently Asked Questions
Which Incoterms rules are sea-freight only?
FAS, FOB, CFR and CIF are designed for sea and inland waterway transport only, because risk transfer is tied to the vessel (alongside ship or on board). The other 7 rules (EXW, FCA, CPT, CIP, DAP, DPU, DDP) can be used for any mode, including air, road, rail or multimodal shipments.
What's the difference between CIF and CIP for insurance?
Both require the seller to insure the goods for the buyer, but CIF (sea freight only) only requires minimum cover, while CIP (any mode) requires broader "all risks" cover under Incoterms 2020 — unless the parties agree to a different level in the contract.
Which Incoterm should I use for my shipment?
It depends on how much control and risk each party wants to take on, the transport mode, and what's agreed commercially with your trading partner. This page is a factual reference, not a recommendation for your specific deal — talk to TGF to work through the trade-offs for your shipment.