Incoterms 2020 chart

All eleven rules in one table: which mode each is written for, exactly where risk passes from seller to buyer, who pays for carriage and insurance, and who clears which side of the border.

Rule	Mode	Risk passes	Carriage paid by	Insurance	Export clearance	Import clearance
EXW Ex Works	Any mode	At the seller's premises, before loading	Buyer	Neither party obliged	Buyer	Buyer
FCA Free Carrier	Any mode	When handed to the buyer's carrier at the named place	Buyer	Neither party obliged	Seller	Buyer
FAS Free Alongside Ship	Sea & inland waterway	When placed alongside the vessel at the named port	Buyer	Neither party obliged	Seller	Buyer
FOB Free On Board	Sea & inland waterway	When the goods are on board the vessel	Buyer	Neither party obliged	Seller	Buyer
CFR Cost and Freight	Sea & inland waterway	When the goods are on board — before the freight the seller paid for	Seller, to destination port	Neither party obliged	Seller	Buyer
CIF Cost, Insurance and Freight	Sea & inland waterway	When the goods are on board — before the freight the seller paid for	Seller, to destination port	Seller — minimum cover (Clause C)	Seller	Buyer
CPT Carriage Paid To	Any mode	When handed to the first carrier — before the carriage the seller paid for	Seller, to named destination	Neither party obliged	Seller	Buyer
CIP Carriage and Insurance Paid To	Any mode	When handed to the first carrier — before the carriage the seller paid for	Seller, to named destination	Seller — all-risks cover (Clause A)	Seller	Buyer
DAP Delivered at Place	Any mode	At the named destination, ready for unloading	Seller	Neither party obliged	Seller	Buyer
DPU Delivered at Place Unloaded	Any mode	At the named destination, once unloaded	Seller	Neither party obliged	Seller	Buyer
DDP Delivered Duty Paid	Any mode	At the named destination, cleared for import, ready for unloading	Seller	Neither party obliged	Seller	Seller

The trap in CFR, CIF, CPT and CIP

These four rules split the cost point and the risk point, and it catches people out constantly. Under CIF, the seller pays the freight all the way to the destination port — but risk passes to the buyer the moment the goods are on board at origin. If the vessel is lost mid-ocean, the buyer owns the loss, on a shipment whose freight the seller paid for.

That is not a drafting error; it is the point. The seller arranges and pays for transport as a service to the buyer, while the buyer carries the risk of the voyage. It is also why CIF and CIP oblige the seller to buy insurance for the buyer's benefit — and why the level of that cover matters.

What actually changed in 2020

DAT became DPU. Delivered at Terminal was renamed Delivered at Place Unloaded, because delivery never had to be at a terminal — it can be anywhere the parties name.
CIP insurance was raised. CIP now requires all-risks cover, Institute Cargo Clauses A. CIF stayed at minimum cover, Clauses C, because it is used heavily for bulk commodity trades where minimum cover is the norm.
FCA got an on-board bill of lading option. The parties can agree that the buyer instructs the carrier to issue an on-board bill to the seller — which finally makes FCA workable under a letter of credit that demands one.
Own means of transport is recognised. FCA, DAP, DPU and DDP now acknowledge that a party may carry the goods with its own vehicles rather than contracting a carrier.
Security obligations and cost allocation were made explicit throughout the rules.

Choosing a rule

Two practical rules of thumb outperform most detailed advice. First, use FCA rather than FOB unless the goods genuinely go loose or in bulk over a ship's rail. Containerised cargo is handed over at a terminal days before it is loaded, so FOB leaves the seller carrying risk over a period they no longer control. Second, always name the place precisely. "FCA Chicago" is ambiguous; "FCA 1200 River Road, Cedar Rapids, Iowa, Incoterms 2020" is not.

Avoid DDP unless you are genuinely able to act as importer of record in the destination country, including registering for and paying local taxes. Sellers agree to DDP to win business and then discover they cannot legally clear the goods.

Incoterms do not do everything

They allocate delivery, risk, cost and clearance obligations between seller and buyer. They do not transfer title, they do not set payment terms, they do not govern what happens on breach, and they are not a contract of carriage. All of that lives in your sale contract. An order confirmation that says nothing but "CIF Tokyo" has left most of the important questions unanswered.

Questions people actually ask

What is the difference between FOB and FCA?

Under FOB the seller carries risk until the goods are physically on board the vessel. Under FCA risk passes when the goods are handed to the buyer's carrier at the named place — a container yard, a warehouse, a terminal gate. For containerised freight FCA reflects reality; FOB leaves the seller on risk for days during which they control nothing.

Which Incoterms rules can only be used for sea freight?

Four: FAS, FOB, CFR and CIF. They are written around a vessel and a port and should not be used for containerised, air or multimodal shipments. The other seven — EXW, FCA, CPT, CIP, DAP, DPU and DDP — work for any mode.

Who pays the duty under DDP?

The seller, along with import clearance and any local taxes due on importation. It is the maximum-obligation rule for the seller. Only agree to it if you can actually act as importer of record in that country.

Do I have to write 'Incoterms 2020' in my contract?

You should. The rules are revised roughly every decade and earlier versions remain valid if the parties choose them. Naming the version with the rule and the place removes the argument entirely: 'CIP Yokohama, Incoterms 2020'.

How much insurance does CIP require?

All-risks cover under Institute Cargo Clauses A, at 110 percent of the contract value in the contract currency. This was raised in the 2020 revision. CIF still requires only minimum cover under Clauses C, so buyers on CIF terms who want broader protection should arrange it themselves or agree an upgrade in the contract.

Put the rule on the paperwork

The Incoterm and its named place belong on the commercial invoice, and getting the value basis right depends on it. The commercial invoice generator carries an Incoterms 2020 field and keeps freight and insurance on separate lines so the customs value can be built correctly.