Reference tool · International trade

Incoterms 2020 quick reference

A practical, single-page reference for all 11 Incoterms 2020 rules. Know who arranges and pays for freight, insurance, loading, customs clearance, and duty at each leg — so your landed-cost worksheets, supplier comparisons, and contract terms have a solid foundation.

See all 11 terms Use with landed-cost worksheet

Quick decision map

If your shipment is…	Common Incoterms to consider	Why
Small courier/express (DHL, FedEx, UPS)	DAP, DDP	Courier handles most legs; you mainly choose who pays duty.
Sea freight, supplier handles everything to your port	FOB, CIF	Classic sea-freight split: risk transfers at loading (FOB) or destination port (CIF with insurance).
Sea freight, you want full control of freight	FCA, EXW	You book the vessel; supplier only needs to deliver to your forwarder.
Rail or road freight (China–Europe, cross-border trucking)	FCA, CIP	FCA for buyer-controlled freight; CIP when you want supplier to insure.
You want the supplier to deliver to your warehouse door	DAP, DDP	DAP if you pay import duty yourself; DDP if supplier handles everything including duty.
Container freight where you only want goods placed alongside the ship	FAS	Used mainly for bulk commodities, not containerized goods.

All 11 Incoterms 2020 — rules, risk, and cost allocation

Code	Full name	Mode	Who arranges main carriage?	Who pays freight?	Who insures?	Who clears export?	Who clears import?	Who pays import duty?	Risk transfers at
EXW	Ex Works	Any	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Supplier's premises
FCA	Free Carrier	Any	Buyer	Buyer	Buyer	Supplier	Buyer	Buyer	Goods handed to buyer's carrier
FAS	Free Alongside Ship	Sea/Inland waterway	Buyer	Buyer	Buyer	Supplier	Buyer	Buyer	Goods placed alongside vessel
FOB	Free On Board	Sea/Inland waterway	Buyer	Buyer	Buyer	Supplier	Buyer	Buyer	Goods loaded on board vessel
CFR	Cost and Freight	Sea/Inland waterway	Supplier	Supplier	Buyer	Supplier	Buyer	Buyer	Goods loaded on board vessel
CIF	Cost, Insurance and Freight	Sea/Inland waterway	Supplier	Supplier	Supplier	Supplier	Buyer	Buyer	Goods loaded on board vessel
CPT	Carriage Paid To	Any	Supplier	Supplier	Buyer	Supplier	Buyer	Buyer	Goods handed to first carrier
CIP	Carriage and Insurance Paid To	Any	Supplier	Supplier	Supplier	Supplier	Buyer	Buyer	Goods handed to first carrier
DAP	Delivered at Place	Any	Supplier	Supplier	Supplier	Supplier	Buyer	Buyer	Goods ready for unloading at destination
DPU	Delivered at Place Unloaded	Any	Supplier	Supplier	Supplier	Supplier	Buyer	Buyer	Goods unloaded at destination
DDP	Delivered Duty Paid	Any	Supplier	Supplier	Supplier	Supplier	Supplier	Supplier	Goods ready for unloading, duty paid

Key changes from Incoterms 2010

DAT → DPU: "Delivered at Terminal" renamed to "Delivered at Place Unloaded" — now any place, not only a terminal.
CIP insurance upgrade: Minimum insurance cover raised from Clause C to Clause A (all risks) under CIP — matching CIF-level coverage.
FCA + on-board bill of lading: Buyer and supplier can agree that the supplier obtains an on-board bill of lading after loading, bridging FCA with letter-of-credit requirements.
Security obligations: Each term now explicitly allocates security-related costs (container scanning, transport security).
Own-transport flexibility: FCA, DAP, DPU, and DDP now allow the buyer or supplier to use their own vehicles instead of third-party carriers.

Common pitfalls

EXW without export help: The buyer is responsible for export clearance, which is often impossible for a foreign buyer without a local entity. Prefer FCA.
FOB for container freight: FOB risk transfers when goods cross the ship's rail — but in container shipping, the container is already sealed and handed to the terminal long before. FCA is usually more appropriate.
CIF without checking insurance scope: CIF requires only minimum cover (Clause C). For valuable or fragile goods, negotiate additional insurance separately.
DDP without confirming local duty rates: The supplier bears all import duty risk. If duty rates are uncertain, DAP is safer.
Mixing terms in one contract: State one Incoterm per shipment clearly. Avoid "FOB with destination charges prepaid" — it creates ambiguity.

How to choose

Start with transport mode: Sea/inland waterway opens EXW, FAS, FOB, CFR, CIF. Any mode keeps all 11 open.
Decide who controls freight: If you have better freight rates, choose FCA/FOB/EXW. If the supplier has better logistics, choose CIF/CFR/CPT/CIP/DAP/DDP.
Decide the risk handover point: Earlier handover (EXW, FCA, FOB) = more buyer control, more buyer risk. Later handover (DAP, DDP) = more supplier risk, higher supplier price.
Factor in customs capability: Can the buyer handle import clearance and duty payment? If not, DDP may be worth the premium.
Document the place precisely: "FCA Shenzhen Yantian CFS" is enforceable; "FCA China" is not.

Connect to your workflow

Use this reference together with:

Landed cost comparison worksheet — plug in the correct freight/duty split based on your Incoterm.
Supplier comparison worksheet — compare quotes on the same Incoterm basis.
Supplier follow-up checklist — always confirm the exact Incoterm and named place.
Contract red-flag checklist — check for missing or ambiguous Incoterm clauses.

Cost allocation cheat sheet

Cost item	EXW	FCA	FAS	FOB	CFR	CIF	CPT	CIP	DAP	DPU	DDP
Loading at origin	B	S	S	S	S	S	S	S	S	S	S
Export clearance	B	S	S	S	S	S	S	S	S	S	S
Origin terminal charges	B	B	S	S	S	S	S	S	S	S	S
Main carriage / freight	B	B	B	B	S	S	S	S	S	S	S
Insurance	B	B	B	B	B	S	B	S	—	—	—
Destination terminal charges	B	B	B	B	B	B	B	B	S	S	S
Unloading at destination	B	B	B	B	B	B	B	B	B	S	S
Import clearance & duty	B	B	B	B	B	B	B	B	B	B	S
Delivery to final destination	B	B	B	B	B	B	B	B	S	S	S

S = Supplier pays/arranges. B = Buyer pays/arranges. "—" = not required by the term but strongly recommended to insure separately.