Incoterms 2020 guide
The 11 ICC Incoterms® 2020 rules, in one table, plus a simple picker to narrow down a starting point. Always agree the exact rule and named place in writing in the sale contract itself — this page is background reading, not a substitute for that.
Find a starting point
Answer two questions for a starting point drawn from the ICC's own rule structure below — not a recommendation for a specific shipment or contract.
Based on those answers:
- FCA — Free CarrierThe supplier delivers to a carrier or place the buyer names, cleared for export; the buyer arranges and pays the main transport onward.
All 11 rules
| Rule | Applies to | Who insures | Who clears import | In short |
|---|---|---|---|---|
| EXW — Ex Works | Any mode | Not fixed by the rule | Buyer | The supplier just makes the goods available at its own premises; the buyer arranges and pays for everything else, including export clearance. |
| FCA — Free Carrier | Any mode | Not fixed by the rule | Buyer | The supplier delivers to a carrier or place the buyer names, cleared for export; the buyer arranges and pays the main transport onward. |
| FAS — Free Alongside Ship | Sea / inland waterway only | Not fixed by the rule | Buyer | The supplier places the goods alongside the ship at the named port, cleared for export; used mainly for bulk or breakbulk cargo, rare outside that trade. |
| FOB — Free On Board | Sea / inland waterway only | Not fixed by the rule | Buyer | The supplier delivers the goods on board the vessel; the more commonly used of the four sea-only rules for containerised or general cargo. |
| CPT — Carriage Paid To | Any mode | Not fixed by the rule | Buyer | The supplier pays for carriage to the named destination, but risk passes to the buyer as soon as the goods reach the first carrier. |
| CFR — Cost and Freight | Sea / inland waterway only | Not fixed by the rule | Buyer | The sea-only version of CPT: the supplier pays the freight to the destination port, but risk still passes once the goods are on board at origin. |
| CIP — Carriage and Insurance Paid To | Any mode | Supplier (required) | Buyer | Like CPT, and the supplier must also buy “all risks” insurance, the higher of the two Incoterms 2020 insurance levels, for the buyer's benefit. |
| CIF — Cost, Insurance and Freight | Sea / inland waterway only | Supplier (required) | Buyer | The sea-only version of CIP, but the supplier only has to buy the lower “minimum cover” insurance, not all risks. |
| DAP — Delivered at Place | Any mode | Not fixed by the rule | Buyer | The supplier delivers the goods to the named place in the buyer's country, ready for unloading; the buyer clears import and pays any duty. |
| DPU — Delivered at Place Unloaded | Any mode | Not fixed by the rule | Buyer | Like DAP, and the supplier also unloads the goods at the named place — the only rule that puts unloading on the supplier. |
| DDP — Delivered Duty Paid | Any mode | Not fixed by the rule | Supplier | The supplier delivers to the named place and pays the import duties and taxes too; the buyer only has to unload. Maximum obligation for the supplier. |
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Questions and answers
- What are Incoterms?
- Incoterms® (International Commercial Terms) are 11 standard rules published by the International Chamber of Commerce that define, for a sale of goods, who arranges and pays for transport, who carries the risk at each point and who clears the goods through customs. The current version is Incoterms® 2020.
- Which rules work for any type of transport, and which are sea-only?
- Seven rules — EXW, FCA, CPT, CIP, DAP, DPU, DDP — work for any mode of transport, including a mix of road, rail, air, sea and courier. Four rules — FAS, FOB, CFR, CIF — apply only to sea or inland waterway transport; using one of them for a shipment that also travels by road or air is a common, avoidable mistake.
- What changed between CIP and CIF's insurance requirement in 2020?
- Incoterms 2020 raised CIP's minimum insurance to “all risks” cover; CIF still only requires the lower “minimum cover” level. The two rules look like a matched pair but no longer set the same insurance standard.
- Which rule involves the least work for a first-time importer?
- None of them removes the work, they only move it: DDP puts almost everything, including import duties, on the supplier, while EXW puts almost everything on the buyer. A first-time importer is often better served by a rule in between, such as FCA or DAP, where the supplier still handles export and the main transport.
- Is DPU the same as the old DAT rule?
- DPU (Delivered at Place Unloaded) replaced DAT (Delivered at Terminal) in the 2020 revision. DAT named only a terminal; DPU can name any place, as long as the supplier can actually unload there. It is the only Incoterms rule that requires the supplier to unload the goods.
- Does an Incoterm decide who owns the goods, or who pays VAT or customs duty?
- No. Incoterms cover delivery, risk and, for the rules that say so, import formalities — not ownership, which is a separate contract-law question, and not which party is legally liable for VAT or duty, which depends on that country's own tax law.
- Is the picker on this page a legal recommendation?
- No. It is a simple starting point built from the ICC's own rule structure, not advice for a specific shipment or contract. Agree the exact rule and named place in writing with the other party, and ask a trade or logistics professional when the shipment or its value is significant.