# Incoterms 2020 explained

Incoterms 2020 are eleven trade rules from the International Chamber of Commerce that set where the seller delivers, where risk passes and who pays transport, insurance and customs. Any mode: EXW, FCA, CPT, CIP, DAP, DPU, DDP. Sea and inland waterway only: FAS, FOB, CFR, CIF.

## Responsibility matrix

| Rule | Name | Transport | Risk passes at | Export clearance | Loading at origin | Main carriage | Insurance | Unloading at destination | Import clearance and duties |
|---|---|---|---|---|---|---|---|---|---|
| EXW | Ex Works | Any mode | Seller's premises | Buyer | Buyer | Buyer | No obligation | Buyer | Buyer |
| FCA | Free Carrier | Any mode | Handed to carrier | Seller | Seller if at seller's premises | Buyer | No obligation | Buyer | Buyer |
| FAS | Free Alongside Ship | Sea/inland waterway | Alongside ship | Seller | Buyer (on board) | Buyer | No obligation | Buyer | Buyer |
| FOB | Free On Board | Sea/inland waterway | On board vessel | Seller | Seller | Buyer | No obligation | Buyer | Buyer |
| CFR | Cost and Freight | Sea/inland waterway | On board vessel | Seller | Seller | Seller | No obligation | Buyer, unless in seller's freight contract | Buyer |
| CIF | Cost, Insurance and Freight | Sea/inland waterway | On board vessel | Seller | Seller | Seller | Seller, ICC (C) minimum | Buyer, unless in seller's freight contract | Buyer |
| CPT | Carriage Paid To | Any mode | Handed to carrier | Seller | Seller | Seller | No obligation | Buyer, unless in seller's freight contract | Buyer |
| CIP | Carriage and Insurance Paid To | Any mode | Handed to carrier | Seller | Seller | Seller | Seller, ICC (A) | Buyer, unless in seller's freight contract | Buyer |
| DAP | Delivered at Place | Any mode | Arrived at destination | Seller | Seller | Seller | No obligation | Buyer | Buyer |
| DPU | Delivered at Place Unloaded | Any mode | Unloaded at destination | Seller | Seller | Seller | No obligation | Seller | Buyer |
| DDP | Delivered Duty Paid | Any mode | Arrived at destination | Seller | Seller | Seller | No obligation | Buyer | Seller, incl. duties and taxes |

Incoterms® is a trademark of the International Chamber of Commerce; CartonMath is not affiliated with the ICC.

## FAQ

**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.

Source page: https://cartonmath.com/incoterms/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)