Reference

Incoterms 2020, in one chart

Eleven rules, each answering three questions: who pays for what, where the risk passes, and who handles customs. Everything below is on one table so you can read down a column rather than through an article.

The eleven Incoterms 2020 rules, showing transport mode, who pays the main carriage, where risk passes, who handles export and import clearance, and the seller’s insurance obligation.
Rule	Mode	Main carriage	Risk passes	Export clearance	Import clearance	Seller insures
Group E — DepartureThe seller does the least. The goods are made available at the seller's premises. Everything after that is the buyer's job.
EXWEx Works	Any mode	buyer	Seller's premises, not loaded	buyer	buyer	None required
Group F — Main carriage unpaidThe seller hands the goods to a carrier the buyer chose and paid. Risk passes at origin.
FCAFree Carrier	Any mode	buyer	Delivery to the buyer's carrier	seller	buyer	None required
FASFree Alongside Ship	Sea only	buyer	Alongside the vessel	seller	buyer	None required
FOBFree on Board	Sea only	buyer	On board the vessel	seller	buyer	None required
Group C — Main carriage paidThe seller books and pays for the main carriage, but risk still passes at origin. The seller pays for the voyage. The buyer carries the risk during it.
CFRCost and Freight	Sea only	seller	On board at the origin port	seller	buyer	None required
CIFCost, Insurance and Freight	Sea only	seller	On board at the origin port	seller	buyer	Minimum Institute Cargo Clauses (C)
CPTCarriage Paid To	Any mode	seller	Delivery to the first carrier	seller	buyer	None required
CIPCarriage and Insurance Paid To	Any mode	seller	Delivery to the first carrier	seller	buyer	Institute Cargo Clauses (A), all risks
Group D — ArrivalThe seller carries risk all the way to the named destination.
DAPDelivered at Place	Any mode	seller	At destination, ready for unloading	seller	buyer	None required
DPUDelivered at Place Unloaded	Any mode	seller	At destination, once unloaded	seller	buyer	None required
DDPDelivered Duty Paid	Any mode	seller	At destination, cleared, ready for unloading	seller	seller	None required

Every rule takes a named place — DAP Rotterdam, not DAP. None of the eleven says anything about when ownership transfers; that is for your sales contract.

Three things the chart cannot say

They do not transfer ownership

Incoterms allocate cost, risk and clearance. They say nothing about title. It is entirely normal to carry the risk of goods you do not own — and title passes when your sales contract says it does, commonly on full payment. Leave it unstated and it falls to whichever law ends up governing the deal.

A rule without a place is incomplete

DAP is not a delivery term. DAP Rotterdam is. The named place is where the obligation ends, so the same three letters describe two different deals depending on what follows. Write the rule, the place and the version:

DAP Rotterdam, Incoterms 2020

Four of them are sea freight only

FAS, FOB, CFR, CIF apply to sea and inland waterway carriage, with delivery measured against a vessel. Using one for a container handed over at an inland depot is the most common error in trade — the delivery point they describe never occurs. For containers the rule is FCA.

What changed in 2020

DAT became DPU. The destination widened from “terminal” to any named place, so a delivery unloaded at the buyer’s own warehouse is now a standard rule rather than an amended one.
CIP’s insurance rose to all risks; CIF’s did not. CIP now requires Institute Cargo Clauses (A), CIF still requires only (C). The two are quoted as though interchangeable and are no longer close.
FCA gained an on-board bill option. The parties can agree the buyer instructs the carrier to issue an on-board bill of lading to the seller — which is what previously pushed people into misusing FOB to satisfy a letter of credit.

Every rule in detail

EXW — Ex Works

The seller's minimum obligation: goods are made available at their own premises, not loaded, not cleared for export.

FCA — Free Carrier

The seller clears the goods for export and hands them to a carrier the buyer chose. The standard rule for containers.

FAS — Free Alongside Ship

The seller delivers the goods alongside the ship at the named port. Risk passes on the quay, before loading.

FOB — Free on Board

The seller loads the goods on board the vessel at the named port. The most used and most misused rule in trade.

CFR — Cost and Freight

The seller pays the freight to the destination port, but risk passes on board at origin. There is no insurance obligation.

CIF — Cost, Insurance and Freight

CFR plus a minimum insurance policy the seller buys for the buyer's benefit. Risk still passes at origin.

CPT — Carriage Paid To

The version of CFR for any transport mode. The seller pays carriage to the destination, and risk passes to the first carrier at origin.

CIP — Carriage and Insurance Paid To

CPT plus all-risks insurance. The 2020 revision raised its cover to ICC (A), but did not change CIF's.

DAP — Delivered at Place

The seller carries cost and risk to the named destination, and delivers the goods ready for unloading but not unloaded.

DPU — Delivered at Place Unloaded

The only rule that requires the seller to unload. It replaced DAT in 2020 and is no longer limited to terminals.

DDP — Delivered Duty Paid

The seller's maximum obligation: delivered to the destination with import clearance done and duties paid.

Make a document

The Incoterm and its named place belong on your quotation, purchase order, sales confirmation and commercial invoice. Enter the shipment once and every one of them is filled in.

Create a commercial invoice