Medius International Logistics

Incoterms® 2020 finder

Pick an Incoterms rule and see who pays for what, or choose the responsibilities one by one and we will find the rule that fits.

Any mode of transport
Sea and inland waterway
Responsibility Seller Buyer
  1. PackagingExport packing and marking suitable for transport
  2. Loading at seller’s premisesLoading the goods onto the collecting vehicle
    Note

    Under EXW the seller has no duty to load; in practice the seller often loads, but at the buyer’s risk.

  3. Pre-carriage (to port / terminal)Transport from the premises to the export port, airport or terminal
    Note

    Under FCA, if the named place is the seller’s premises, pre-carriage falls to the buyer.

  4. Export customs clearanceExport declaration, licences and permits
  5. Origin terminal chargesHandling at the export port or terminal (THC)
  6. Loading on main carriageLoading onto the vessel, aircraft or main transport
  7. Main carriage (freight)Freight from origin to destination
  8. Cargo insuranceInsurance obligation under the rule
    Note

    Insurance is mandatory for the seller only under CIF (minimum ICC C) and CIP (minimum ICC A). Under the other rules the party bearing the risk is advised to insure.

  9. Destination terminal chargesUnloading from main carriage and terminal handling at destination
    Note

    Under CFR/CIF these costs are the seller’s if included in the contract of carriage; under CPT/CIP they also follow the carriage contract.

  10. Import clearance, duties and taxesImport declaration, customs duty, VAT and other charges
  11. On-carriage (to destination)Transport from the destination terminal to the named place
    Note

    Under CPT/CIP/DAP/DPU/DDP the seller carries to the named place. If that place is a port or terminal, onward transport is the buyer’s.

  12. Unloading at destinationUnloading the goods from the arriving vehicle at the named place
Where does risk pass to the buyer?

This table summarises the commonly accepted cost split under the Incoterms® 2020 rules. Your sales contract and the full ICC text of the rule are what bind the parties. Incoterms® is a registered trademark of the International Chamber of Commerce (ICC).

Incoterms 2020 responsibility chart

Seller = exporter, Buyer = importer

ResponsibilityEXWFCAFASFOBCFRCIFCPTCIPDAPDPUDDP
PackagingSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading at seller’s premisesBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Pre-carriage (to port / terminal)BuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Export customs clearanceBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Origin terminal chargesBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading on main carriageBuyerBuyerBuyerSellerSellerSellerSellerSellerSellerSellerSeller
Main carriage (freight)BuyerBuyerBuyerBuyerSellerSellerSellerSellerSellerSellerSeller
Cargo insurance–––––Seller–Seller–––
Destination terminal chargesBuyerBuyerBuyerBuyerBuyerBuyerSellerSellerSellerSellerSeller
Import clearance, duties and taxesBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSeller
On-carriage (to destination)BuyerBuyerBuyerBuyerBuyerBuyerSellerSellerSellerSellerSeller
Unloading at destinationBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerSellerBuyer

EXW Ex Works

The seller places the goods at the buyer’s disposal at its premises, not loaded. The buyer bears all costs and risks, including loading and export clearance.

FCA Free Carrier

The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. Risk passes on that delivery.

FAS Free Alongside Ship

The seller delivers the goods, cleared for export, alongside the buyer’s vessel at the named port. Loading on board and everything after is the buyer’s.

FOB Free On Board

The seller loads the goods, cleared for export, on board the vessel nominated by the buyer. Risk passes once on board; the buyer pays the freight.

CFR Cost and Freight

The seller pays the freight to the destination port, but risk passes to the buyer when the goods are on board at the port of shipment.

CIF Cost, Insurance and Freight

As CFR, plus the seller buys cargo insurance for the buyer with at least ICC (C) cover. Risk still passes on board at the port of shipment.

CPT Carriage Paid To

The seller pays carriage to the named destination, but risk passes when the goods are handed to the first carrier at origin.

CIP Carriage and Insurance Paid To

As CPT, plus the seller buys cargo insurance with at least ICC (A), i.e. all-risks cover.

DAP Delivered at Place

The seller brings the goods to the named place and delivers them on the arriving vehicle, ready for unloading. Import clearance and duties are the buyer’s.

DPU Delivered at Place Unloaded

The seller delivers the goods unloaded at the named place. The only rule where the seller unloads.

DDP Delivered Duty Paid

The seller delivers the goods cleared for import, duties paid, at the named place ready for unloading. The rule with the maximum obligation for the seller.

Frequently asked questions

What are Incoterms?

Incoterms® are 11 rules published by the International Chamber of Commerce (ICC) that define, in international sales, where the goods are delivered and where costs and risk pass from seller to buyer. The current edition is Incoterms® 2020.

How many rules are in Incoterms 2020?

Eleven. Seven can be used 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 changed from Incoterms 2010 to 2020?

DAT was renamed DPU; the minimum insurance cover under CIP was raised to ICC (A); FCA gained an option for an on-board bill of lading; and FCA, DAP, DPU and DDP now expressly allow the parties to use their own means of transport.

Should I use FOB or FCA for containers?

Containers are usually handed over at the terminal before loading, so the ICC recommends FCA instead of FOB, CPT instead of CFR, and CIP instead of CIF for containerised cargo.

Do Incoterms replace the contract of carriage?

No. Incoterms govern delivery obligations under the sales contract; they do not decide transfer of ownership, payment terms or the terms of the contract of carriage.

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