11 rules · ICC 2020
Incoterms® 2020
Find the right rule for your shipment and see exactly where cost and risk pass from seller to buyer.
Find the right rule for your shipment and see exactly where cost and risk pass from seller to buyer.
Answer three or four quick questions. The result updates as you choose, with a journey showing how far the seller pays and where the risk passes.
Grouped by the official ICC groups, from the least seller responsibility (E) to the most (D). Open any rule for the full details.
Risk passes: At the seller's premises, once the goods are placed at the buyer's disposal (not loaded).
Seller: Packs the goods and makes them available at the named place.
Buyer: Loading, export clearance, all transport, insurance, import clearance and duties.
The seller does not load or clear the goods for export. If the buyer cannot clear export in Egypt, FCA is usually the better choice.
SellerBuyer
Risk passes: When the goods are handed to the buyer's carrier at the named place.
Seller: Export clearance and delivery to the buyer's carrier (loaded, if at the seller's premises).
Buyer: Main transport, insurance, import clearance and duties.
Works for every mode. Since 2020 the buyer can ask the carrier to issue an on-board bill of lading to the seller, which helps with letters of credit.
SellerBuyer
Risk passes: When the goods are placed alongside the vessel at the named port of shipment.
Seller: Export clearance and delivery alongside the vessel.
Buyer: Loading on board, ocean freight, insurance, import clearance and duties.
Mostly used for bulk and breakbulk cargo, not for containers.
SellerBuyer
Risk passes: When the goods are on board the vessel at the named port of shipment.
Seller: Export clearance and loading on board at the port of shipment.
Buyer: Ocean freight, insurance, import clearance and duties.
For container cargo the ICC recommends FCA, because containers are usually handed over at the terminal before loading.
SellerBuyer
Risk passes: When the goods are on board at the port of shipment, the same point as FOB.
Seller: Export clearance, loading and ocean freight to the named port of destination.
Buyer: Insurance, unloading at destination, import clearance and duties.
The seller pays the freight, but the risk passes at the port of shipment. Insurance is up to the buyer.
SellerBuyer
Risk passes: When the goods are on board at the port of shipment.
Seller: Export clearance, ocean freight and minimum insurance (ICC C, 110% of the value) to the port of destination.
Buyer: Unloading at destination, import clearance, duties and any extra insurance.
Like CFR, but the seller must insure. Cover is the minimum level, so buyers of high-value goods often add their own.
SellerBuyer
Risk passes: When the goods are handed to the first carrier.
Seller: Export clearance and transport to the named place of destination.
Buyer: Insurance, import clearance and duties.
The all-modes version of CFR, often used for air and multimodal cargo.
SellerBuyer
Risk passes: When the goods are handed to the first carrier.
Seller: Export clearance, transport and all-risks insurance (ICC A, 110% of the value) to the named destination.
Buyer: Import clearance and duties.
Since 2020 CIP requires wider insurance (ICC A) than CIF (ICC C).
SellerBuyer
Risk passes: When the goods arrive at the named place, ready for unloading.
Seller: All transport to the named place and export clearance.
Buyer: Unloading, import clearance and duties.
Door delivery where the buyer still clears customs and pays the duties.
SellerBuyer
Risk passes: After the goods are unloaded at the named place.
Seller: All transport to the named place, export clearance and unloading.
Buyer: Import clearance and duties.
Replaced DAT in 2020. The only rule where the seller unloads at destination.
SellerBuyer
Risk passes: When the goods arrive at the named place, cleared for import and ready for unloading.
Seller: All transport, export and import clearance, and import duties and taxes.
Buyer: Unloading at the named place.
Maximum responsibility for the seller. For cargo into Egypt the seller must clear Egyptian customs, usually through a local customs broker.
SellerBuyer
Under FOB the buyer arranges and pays the ocean freight and insurance, which suits importers with their own rates. Under CIF the seller arranges freight and minimum insurance to the destination port. In both, the risk passes when the goods are on board at the port of shipment.
Under EXW the buyer must load the goods and clear them for export, which is hard without a presence in the seller's country. Under FCA the seller clears export and hands the goods to the buyer's carrier, so it is usually the safer choice.
No. FAS, FOB, CFR and CIF are for sea and inland waterway transport only. For air cargo use FCA, CPT, CIP or a D-group rule.
Almost. The seller pays transport, import clearance and import duties and taxes to the named place. Unloading stays with the buyer unless agreed otherwise. For cargo into Egypt, the seller must be able to clear Egyptian customs, usually through a local customs broker.
Incoterms® is a registered trademark of the International Chamber of Commerce. This page is a general guide, not legal advice. Always state the rule, the named place and “Incoterms® 2020” in your contract.
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