The 11 terms in two groups
Any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP. Sea and inland waterway only: FAS, FOB, CFR, CIF.
Most used by Indian exporters
| Term | Seller pays up to | Risk passes | Good for |
|---|---|---|---|
| FOB | Loading on vessel at Indian port | On board | Buyer controls freight |
| CFR | Ocean freight to destination port | On board at Indian port | Seller has better freight rates |
| CIF | Freight + minimum insurance | On board at Indian port | Buyer wants insurance included |
| FCA | Handover to buyer’s carrier | At handover | Containers handed over inland or at CFS |
| DAP | Delivery at named place, not unloaded | At destination | Seller manages full transport |
Terms to use with care
- EXW: the buyer must handle Indian export clearance, which is often impractical for a foreign buyer.
- DDP: you pay import duty and taxes in the buyer’s country – only use it if you know those costs well.
Practical tips
- Always name the place: “FOB Hazira”, not just “FOB”.
- For containers, FCA is often more accurate than FOB because risk passes when the container is handed over.
- Write “Incoterms 2020” on the contract and invoice.
See all 11 terms in our Incoterms guide.
Frequently asked questions
Which Incoterm is safest for a new exporter?
FOB or FCA are simple and common, because the buyer arranges main freight and risk passes in India.
Is CIF insurance enough?
CIF requires only minimum cover. Ask for higher cover if the goods are valuable.
This article is general information, not legal advice. Rules and rates change; talk to our team before acting on it.