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Incoterms 2020 Guide

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This guide is for informational purposes only. Incoterms are published by the International Chamber of Commerce (ICC). For official definitions, refer to the ICC Incoterms 2020 publication.
CodeNameTransportDutyInsuranceRisk Transfer
EXWEx WorksAnyBuyerBuyerSeller's premises
FCAFree CarrierAnyBuyerBuyerDelivery to carrier
CPTCarriage Paid ToAnyBuyerBuyerDelivery to first carrier
CIPCarriage and Insurance PaidAnyBuyerSeller (all-risk)Delivery to first carrier
DAPDelivered at PlaceAnyBuyerNo obligationAt destination (before unloading)
DPUDelivered at Place UnloadedAnyBuyerNo obligationAfter unloading at destination
DDPDelivered Duty PaidAnySellerNo obligationAt buyer's premises
FASFree Alongside ShipSea onlyBuyerBuyerAlongside vessel at port
FOBFree On BoardSea onlyBuyerBuyerOn board vessel at port of shipment
CFRCost and FreightSea onlyBuyerBuyerOn board vessel at port of shipment
CIFCost, Insurance and FreightSea onlyBuyerSeller (min cover)On board vessel at port of shipment

EXW — Ex Works

Seller pays: Minimal
Buyer pays: All from seller premises
Risk transfers at: Seller's premises
Import duty: Buyer
Insurance: Buyer
Transport mode: Any

Recommended for: Domestic sales, buyer arranges everything

FCA — Free Carrier

Seller pays: To named place/carrier
Buyer pays: From carrier
Risk transfers at: Delivery to carrier
Import duty: Buyer
Insurance: Buyer
Transport mode: Any

Recommended for: Container shipments, multimodal transport

CPT — Carriage Paid To

Seller pays: Freight to destination
Buyer pays: From delivery point
Risk transfers at: Delivery to first carrier
Import duty: Buyer
Insurance: Buyer
Transport mode: Any

Recommended for: Air/multimodal when seller pays freight

CIP — Carriage and Insurance Paid

Seller pays: Freight + insurance to destination
Buyer pays: From delivery point
Risk transfers at: Delivery to first carrier
Import duty: Buyer
Insurance: Seller (all-risk)
Transport mode: Any

Recommended for: High-value goods requiring insurance

DAP — Delivered at Place

Seller pays: To destination (not unloaded)
Buyer pays: Unloading + import clearance
Risk transfers at: At destination (before unloading)
Import duty: Buyer
Insurance: No obligation
Transport mode: Any

Recommended for: Door-to-door, buyer handles import

DPU — Delivered at Place Unloaded

Seller pays: To destination + unloaded
Buyer pays: Import clearance
Risk transfers at: After unloading at destination
Import duty: Buyer
Insurance: No obligation
Transport mode: Any

Recommended for: Terminal/warehouse delivery

DDP — Delivered Duty Paid

Seller pays: Everything including import duty
Buyer pays: Minimal (receive goods)
Risk transfers at: At buyer's premises
Import duty: Seller
Insurance: No obligation
Transport mode: Any

Recommended for: E-commerce, full seller responsibility

FAS — Free Alongside Ship

Seller pays: To alongside vessel
Buyer pays: From alongside vessel
Risk transfers at: Alongside vessel at port
Import duty: Buyer
Insurance: Buyer
Transport mode: Sea only

Recommended for: Bulk cargo, heavy/oversized goods

FOB — Free On Board

Seller pays: On board vessel
Buyer pays: From on board vessel
Risk transfers at: On board vessel at port of shipment
Import duty: Buyer
Insurance: Buyer
Transport mode: Sea only

Recommended for: Most common for sea freight

CFR — Cost and Freight

Seller pays: Freight to destination port
Buyer pays: From port of destination
Risk transfers at: On board vessel at port of shipment
Import duty: Buyer
Insurance: Buyer
Transport mode: Sea only

Recommended for: Sea freight, seller pays shipping

CIF — Cost, Insurance and Freight

Seller pays: Freight + insurance to destination
Buyer pays: From port of destination
Risk transfers at: On board vessel at port of shipment
Import duty: Buyer
Insurance: Seller (min cover)
Transport mode: Sea only

Recommended for: Letters of credit, traditional trade

Last updated: 2026-04-15