Incoterms 2020 explained

Incoterms 2020 are eleven three-letter trade rules from the International Chamber of Commerce that say where the seller delivers, where risk passes to the buyer, and who pays for transport, insurance and customs. Seven work for any mode of transport; four (FAS, FOB, CFR and CIF) are for sea and inland waterway only.

Summarised from the Incoterms® 2020 rules. Not legal advice.Updated 6 October 2026

E rulesDeparture

EXWEx WorksAny mode of transport

F rulesMain carriage unpaid

FCAFree CarrierAny mode of transport FASFree Alongside ShipSea and inland waterway FOBFree On BoardSea and inland waterway

C rulesMain carriage paid

CFRCost and FreightSea and inland waterway CIFCost, Insurance and FreightSea and inland waterway CPTCarriage Paid ToAny mode of transport CIPCarriage and Insurance Paid ToAny mode of transport

D rulesArrival

DAPDelivered at PlaceAny mode of transport DPUDelivered at Place UnloadedAny mode of transport DDPDelivered Duty PaidAny mode of transport

Who does what

Seller or buyer, for the six jobs that cause most disputes. Blue squares mark the seller, yellow dots the buyer, and every cell is labelled.

SellerBuyerTap a rule for its page.

Incoterms 2020 responsibility matrix: who does what, seller or buyer
Rule	Transport	Export clearance	Loading at origin	Main carriage	Insurance	Unloading at destination	Import clearance and duties
EXWEx Works	Any mode	Buyer	Buyer	Buyer	No obligation	Buyer	Buyer
FCAFree Carrier	Any mode	Seller	Seller if at seller's premises	Buyer	No obligation	Buyer	Buyer
FASFree Alongside Ship	Sea, waterway	Seller	Buyer (on board)	Buyer	No obligation	Buyer	Buyer
FOBFree On Board	Sea, waterway	Seller	Seller	Buyer	No obligation	Buyer	Buyer
CFRCost and Freight	Sea, waterway	Seller	Seller	Seller	No obligation	Buyer, unless in seller's freight contract	Buyer
CIFCost, Insurance and Freight	Sea, waterway	Seller	Seller	Seller	Seller, ICC (C) minimum	Buyer, unless in seller's freight contract	Buyer
CPTCarriage Paid To	Any mode	Seller	Seller	Seller	No obligation	Buyer, unless in seller's freight contract	Buyer
CIPCarriage and Insurance Paid To	Any mode	Seller	Seller	Seller	Seller, ICC (A)	Buyer, unless in seller's freight contract	Buyer
DAPDelivered at Place	Any mode	Seller	Seller	Seller	No obligation	Buyer	Buyer
DPUDelivered at Place Unloaded	Any mode	Seller	Seller	Seller	No obligation	Seller	Buyer
DDPDelivered Duty Paid	Any mode	Seller	Seller	Seller	No obligation	Buyer	Seller, incl. duties and taxes

DownloadCSV JSON

Where each rule hands over

Read down the bars: the further right a bar runs, the more of the journey the seller carries. Under the C rules the seller pays far beyond the point where the risk has already passed.

Seller carries the risk toSeller pays transport to

EXWFCAFASFOBCFRCIFCPTCIPDAPDPUDDP

PremisesPort of shipmentNamed placePremisesPort of shipmentNamed place

Three ideas behind every rule

Delivery is where risk passes

Each rule names a delivery point. Up to it, loss or damage is the seller's problem; after it, the buyer's. Under the C rules that point is at origin even though the seller pays the freight.

Name the place precisely

‘FCA Ningbo’ or ‘DAP Hamburg’ is not enough. Give the address or terminal: it decides who loads, who unloads and where the risk moves. Write ‘FOB Shanghai Incoterms® 2020’ in full.

Containers are not ships

Container cargo is handed to the carrier at a terminal. FCA, CPT and CIP fit that; FOB, CFR and CIF were written for goods loaded directly over the ship's rail.

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.

Common questions

How many Incoterms are there in 2020?

Eleven. Seven can be used for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU and DDP) and four only for sea and inland waterway transport (FAS, FOB, CFR and CIF).

What changed in Incoterms 2020?

DAT was renamed DPU and can now be any place of unloading; CIP now requires the wider Institute Cargo Clauses (A) cover while CIF stays at (C); FCA allows an on-board bill of lading to be issued to the seller; and the rules allow for the seller or buyer using their own transport.

Which Incoterm should I use for container shipments?

The ICC recommends the 'any mode' rules for containers: FCA instead of FOB, CPT instead of CFR, and CIP instead of CIF, because container cargo is handed to the carrier at a terminal before it is loaded on the ship.

Do Incoterms say when ownership passes?

No. Incoterms deal with delivery, risk, costs and customs formalities. Transfer of ownership, payment and what happens on breach are set by the sales contract and the applicable law.

Which Incoterm puts the least on the seller?

EXW, where the seller only makes the goods available at its premises. DDP puts the most on the seller, including import duties and taxes.