Trade & shipping · Incoterms 2020
Incoterms 2020 chooser.
Answer a few questions about who handles what. The matching Incoterms 2020 rules appear with a comparison of export clearance, carriage, import clearance, risk and insurance.
Incoterms rules set who pays for transport, insurance and customs clearance, and where risk passes from seller to buyer. Only DDP puts import clearance on the seller, only EXW leaves export clearance with the buyer, and only CIP and CIF make the seller buy insurance. FAS, FOB, CFR and CIF are for sea and inland waterway transport only.
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Reading the result
- The named place matters. Write the rule with a precise place, for example FCA Toronto warehouse, because that place is where delivery and risk move.
- C-rules split cost and risk. With CPT, CIP, CFR and CIF the seller pays carriage to the destination but risk passes earlier, at origin.
- Insurance. Only CIP and CIF oblige the seller to insure for the buyer, with wider cover under CIP than CIF.
- Import duties and taxes are the buyer’s under every rule except DDP.
- Incoterms rules govern the sale contract, not the carriage contract, and do not transfer title or cover payment. This page summarises the rules in its own words; read the official ICC text before drafting a contract.
Official sources, read October 2026: ICC, Incoterms rules, ICC Academy, C rules vs D rules, ICC Academy, FCA and FOB and the ICC Incoterms 2020 checklist.
Frequently asked questions
What is the difference between FOB and CIF?
Both are sea rules where risk passes once the goods are on board at the port of shipment. Under CIF the seller also pays freight to the destination port and buys minimum insurance for the buyer. Under FOB the buyer arranges freight.
Which Incoterm puts the least on the seller?
EXW. The seller only makes the goods available at its premises. The buyer loads, clears export and pays all transport.
Which Incoterm puts the most on the seller?
DDP. The seller delivers cleared for import at the named destination and bears import duties and taxes.
Can I use FOB for a container shipment?
The ICC advises FCA for containers and other cases where goods are handed to a carrier before they are on board, because FOB risk passes on board the vessel.
Estimate only
This page is a planning guide, not customs, tax or legal advice. Rules, thresholds and fees change; confirm with the official source linked above, a customs broker or an accountant. It does not look up or verify anything in a government register, and calculations run in your browser; nothing is sent anywhere.