Resources
Incoterms 2020 Guide
A comprehensive reference to all 11 Incoterms 2020 rules, explaining responsibilities, risk transfer, and when to use each term.
Incoterms (International Commercial Terms) are a set of internationally recognized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers in international trade transactions. They specify who is responsible for shipping, insurance, documentation, customs clearance, and at what point risk transfers from seller to buyer.
The current version, Incoterms 2020, includes 11 rules divided into four groups. Seven rules apply to any mode of transport, while four are specific to sea and inland waterway transport.
The Four Groups
Departure
Seller makes goods available at their premises
Main Carriage Unpaid
Seller delivers to a carrier nominated by the buyer
Main Carriage Paid
Seller arranges and pays for the main carriage
Arrival
Seller bears all costs and risks to the destination
Quick Reference
| Code | Name | Group | Modes |
|---|---|---|---|
| EXW | Ex Works | Departure | Any |
| FCA | Free Carrier | Main Carriage Unpaid | Any |
| CPT | Carriage Paid To | Main Carriage Paid | Any |
| CIP | Carriage and Insurance Paid To | Main Carriage Paid | Any |
| DAP | Delivered at Place | Arrival | Any |
| DPU | Delivered at Place Unloaded | Arrival | Any |
| DDP | Delivered Duty Paid | Arrival | Any |
| FAS | Free Alongside Ship | Main Carriage Unpaid | Sea & Inland Waterway |
| FOB | Free on Board | Main Carriage Unpaid | Sea & Inland Waterway |
| CFR | Cost and Freight | Main Carriage Paid | Sea & Inland Waterway |
| CIF | Cost, Insurance and Freight | Main Carriage Paid | Sea & Inland Waterway |
All 11 Incoterms Explained
Need Help Choosing the Right Incoterm?
Our trade specialists can advise you on the best Incoterm for your specific shipment. Get in touch for expert guidance.