International trade reference

Incoterms®
2020.

Eleven globally recognised trade rules that clarify delivery, cost, risk and responsibility between sellers and buyers.

Explore the 11 rules

01 / WHY THEY MATTER

Clear terms.
Fewer surprises.

Published by the International Chamber of Commerce (ICC), Incoterms® 2020 help parties define the delivery point, transfer of risk, transport costs, insurance obligations and customs responsibilities in B2B contracts for the sale of goods.

They do not replace a sales contract or determine ownership, payment terms or every legal obligation. The chosen rule should always include a precisely named place or port.

02 / THE 11 RULES

Choose by
mode of transport.

Seven rules can be used for any mode or combination of modes. Four are reserved for sea and inland waterway transport.

Any mode or modes of transport

01EXW

Ex Works

Buyer assumes most transport responsibility from the seller’s premises.

02FCA

Free Carrier

Seller delivers to the carrier or another named party at the agreed place.

03CPT

Carriage Paid To

Seller pays carriage to destination; risk transfers when handed to the carrier.

04CIP

Carriage and Insurance Paid To

CPT responsibilities plus seller-arranged cargo insurance.

05DAP

Delivered at Place

Seller delivers ready for unloading at the named destination.

06DPU

Delivered at Place Unloaded

Seller delivers and unloads at the named destination.

07DDP

Delivered Duty Paid

Seller carries the broadest responsibility, including import clearance and duties.

Sea and inland waterway transport only

08FAS

Free Alongside Ship

Seller delivers alongside the vessel at the named port of shipment.

09FOB

Free On Board

Seller delivers the goods on board the vessel at the port of shipment.

10CFR

Cost and Freight

Seller pays ocean freight; risk transfers once goods are on board.

11CIF

Cost, Insurance and Freight

CFR responsibilities plus seller-arranged minimum insurance cover.

03 / PRACTICAL GUIDANCE

Select with
care.

01

Start with the journey

Consider the mode, handover point, customs capability and destination before choosing a rule.

02

Name the exact place

Write the agreed named place or port clearly beside the selected Incoterms® 2020 rule.

03

Align every document

Keep the contract, commercial invoice, transport instructions and insurance arrangements consistent.

PLAN WITH CONFIDENCE

Need help shaping
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This page is a general overview, not legal advice or a substitute for the official ICC rules.