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Home › Resources › Incoterms 2020 Guide

Incoterms 2020 Guide

Who pays what, and where risk passes — all 11 terms in one table.

TermNameExport clearanceMain freightImport clearance & dutyKey point
EXWEx WorksBuyerBuyerBuyerSeller only makes goods available at its premises.
FCAFree CarrierSellerBuyerBuyerSeller clears for export and hands goods to buyer’s carrier.
CPTCarriage Paid ToSellerSellerBuyerSeller pays freight; risk passes at first carrier.
CIPCarriage and Insurance Paid ToSellerSellerBuyerLike CPT, plus seller insures (higher cover).
DAPDelivered at PlaceSellerSellerBuyerSeller delivers to named place, not unloaded.
DPUDelivered at Place UnloadedSellerSellerBuyerSeller delivers and unloads at named place.
DDPDelivered Duty PaidSellerSellerSellerSeller bears all costs including import duty.
FASFree Alongside ShipSellerBuyerBuyerSea only. Goods placed alongside vessel.
FOBFree on BoardSellerBuyerBuyerSea only. Risk passes once goods are on board.
CFRCost and FreightSellerSellerBuyerSea only. Seller pays freight; risk passes on board.
CIFCost, Insurance and FreightSellerSellerBuyerSea only. Like CFR, plus seller insures.

Choose the term that matches who controls the freight. For Indian exporters, FOB, CIF and CFR are common for sea; FCA and CPT work better for containers handed over inland.

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