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Incoterms 2020.

Eleven ICC rules that say where the seller hands over the goods, when the risk moves to the buyer and who pays for each leg. Seven work for any mode, four only for sea and inland waterway.

Rules for any mode of transport

EXW Ex Works

named place of delivery
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Goods made available at the seller's premises or another named place, not loaded and not cleared for export.

Risk passesAt the seller's premises, when goods are placed at the buyer's disposal
Read more about EXW

FCA Free Carrier

named place of delivery
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller hands the goods, cleared for export, to the carrier the buyer nominated at a named place. In 2020 the parties may agree that the buyer's carrier issues an on-board bill of lading to the seller.

Risk passesWhen handed to the buyer's carrier at the named place
Read more about FCA

CPT Carriage Paid To

named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller pays carriage to the named destination, but risk passes when the goods go to the first carrier.

Risk passesWhen handed to the first carrier in the export country
Read more about CPT

CIP Carriage and Insurance Paid To

named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

As CPT, plus the seller buys cargo insurance. Since 2020 the minimum cover is Institute Cargo Clauses (A), 110% of contract value.

Risk passesWhen handed to the first carrier in the export country
Read more about CIP

DAP Delivered at Place

named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller carries the goods to the named place, ready for unloading. Import clearance and duties stay with the buyer.

Risk passesAt the named destination, on the arriving vehicle, ready for unloading
Read more about DAP

DPU Delivered at Place Unloaded

named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

The only rule where the seller unloads at destination. Replaced DAT in 2020.

Risk passesAt the named destination, once unloaded
Read more about DPU

DDP Delivered Duty Paid

named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller carries the goods to the buyer and also clears them for import and pays duties and taxes. Maximum obligation on the seller.

Risk passesAt the named destination, ready for unloading, cleared for import
Read more about DDP

Rules for sea and inland waterway

FAS Free Alongside Ship

named port of shipment
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller places the goods, cleared for export, alongside the buyer's vessel. For bulk and break-bulk, not containers.

Risk passesAlongside the vessel at the port of shipment
Read more about FAS

FOB Free on Board

named port of shipment
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller loads the goods on board the vessel the buyer nominated. ICC advises FCA instead for containers, which are handed over at a terminal, not at the ship's rail.

Risk passesOn board the vessel at the port of shipment
Read more about FOB

CFR Cost and Freight

named port of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

Seller pays sea freight to the destination port, but risk passes on board at the port of shipment.

Risk passesOn board the vessel at the port of shipment
Read more about CFR

CIF Cost, Insurance and Freight

named port of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded

As CFR, plus the seller insures the cargo. Minimum cover stays Institute Cargo Clauses (C).

Risk passesOn board the vessel at the port of shipment
Read more about CIF

Who pays what

Cost split under Incoterms 2020, step by step. Columns go in the order costs move from the buyer to the seller, EXW to DDP. Blue cells: the seller pays. "Agreed" means the contract decides.

CostEXWFCACPTCIPFASFOBCFRCIFDAPDPUDDP
Loading at originBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Export customs declarationBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Carriage to port of exportBuyerAgreedSellerSellerSellerSellerSellerSellerSellerSellerSeller
Unloading of truck in port of exportBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading on vessel/airplane in port of exportBuyerBuyerSellerSellerBuyerSellerSellerSellerSellerSellerSeller
Carriage (sea/air) to port of importBuyerBuyerSellerSellerBuyerBuyerSellerSellerSellerSellerSeller
InsuranceBuyerBuyerBuyerSellerBuyerBuyerBuyerSellerSellerSellerSeller
Unloading in port of importBuyerBuyerAgreedAgreedBuyerBuyerBuyerBuyerSellerSellerSeller
Loading on truck in port of importBuyerBuyerAgreedAgreedBuyerBuyerBuyerBuyerSellerSellerSeller
Carriage to place of destinationBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSellerSellerSeller
Import customs clearanceBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSeller
Import duties and taxesBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSeller
Unloading at destinationBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSellerBuyer

Sources: ICC, Incoterms® 2020 (rules, groups, insurance change); cost table as given in Wikipedia, Incoterms(section "Allocations of costs", based on the Incoterms 2020 English Edition). Incoterms® is a trademark of the ICC.

  • FCA replaced FOB for containers in ICC guidance: a box is handed over at the terminal, long before it is on board.
  • DPU replaced DAT in 2020 and is the only rule where the seller unloads at destination.
  • CIP now asks for Institute Cargo Clauses (A); CIF still asks only for (C).
  • Incoterms do not decide when ownership passes, or the price. They are a part of the sales contract, not the contract of carriage.
  • Shipping a quote under one of these rules? Compare freight rates and check sailings.