Reference
Incoterms 2020
Eleven three letter rules from the International Chamber of Commerce. They decide who pays freight, who insures the goods and where risk changes hands.
Rules for any mode
If your cargo moves in a box, the right rule sits in this table.
| Code | Name | Export clearance | Risk transfers | In practice |
|---|---|---|---|---|
| EXW | Ex Works | Buyer | Seller's premises | Buyer handles export clearance, which they often cannot legally do. |
| FCA | Free Carrier | Seller | On handover to carrier | The right default for containerised cargo. |
| CPT | Carriage Paid To | Seller | On handover to first carrier | Seller pays freight onward, risk passes early. |
| CIP | Carriage and Insurance Paid To | Seller | On handover to first carrier | As CPT with all risk insurance required since 2020. |
| DAP | Delivered at Place | Seller | At destination, not unloaded | Buyer clears the import and pays duty. |
| DPU | Delivered at Place Unloaded | Seller | At destination, unloaded | The only rule obliging the seller to unload. |
| DDP | Delivered Duty Paid | Seller | At destination, duty paid | Seller becomes importer of record abroad. |
Rules for sea and inland waterway
| Code | Name | Export clearance | Risk transfers | In practice |
|---|---|---|---|---|
| FAS | Free Alongside Ship | Seller | Alongside the vessel | Bulk and breakbulk, not containers. |
| FOB | Free On Board | Seller | On board the vessel | Misused for containers constantly. Use FCA. |
| CFR | Cost and Freight | Seller | On board the vessel | Seller pays freight, carries no insurance duty. |
| CIF | Cost Insurance and Freight | Seller | On board the vessel | Minimum Clauses C cover only. |
Next step
Tell us what you are moving.
Send the commodity, the weight and dimensions, the origin and destination, and your target sailing. That gives us enough for a firm quote.