--- title: "Incoterms 2020 for Indian exporters and importers · SSL" description: "The 11 Incoterms 2020 rules in plain words: where delivery and risk pass, who pays freight and insurance, who clears customs, which rules suit…" url: https://safeandsecure.in/global/guides/incoterms-2020/ canonical: https://safeandsecure.in/global/guides/incoterms-2020/ updated: 2026-11-11 lang: en-IN publisher: Safe & Secure Logistics Private Limited --- Guide · Trade terms # Incoterms 2020 for Indian exporters and importers The 11 Incoterms 2020 rules in plain words: where delivery and risk pass, who pays freight and insurance, who clears customs, which rules suit containers, and which leg in India you pay for under each. Updated 29 Sep 2026. General guidance, not legal or tax advice: rules change by notification, so check the linked primary source before you file. Incoterms® are the three-letter trade terms published by the International Chamber of Commerce (ICC). The current edition, **Incoterms 2020**, came into use on 1 January 2020. A rule written on the contract and invoice, such as “FCA Nhava Sheva, Incoterms 2020”, answers four questions: where the seller delivers, when risk passes to the buyer, who pays which costs, and who handles export and import clearance. It does **not** decide the price, the payment terms, or when ownership passes. Those belong in the sales contract. ## The 11 rules at a glance The rules fall into two groups. Seven work for **any mode of transport**, including containers and multimodal moves. Four are for **sea and inland waterway only**, where goods are loaded directly on board a vessel. | Rule | Seller delivers when… | Main carriage paid by | Insurance | Export clearance | Import clearance | | --- | --- | --- | --- | --- | --- | | **EXW** Ex Works | goods are made available at the seller’s premises | Buyer | No obligation | Buyer | Buyer | | **FCA** Free Carrier | goods are handed to the buyer’s carrier at the named place | Buyer | No obligation | Seller | Buyer | | **CPT** Carriage Paid To | goods are handed to the first carrier | Seller | No obligation | Seller | Buyer | | **CIP** Carriage and Insurance Paid To | goods are handed to the first carrier | Seller | Seller, all-risks (ICC A) | Seller | Buyer | | **DAP** Delivered at Place | goods arrive at the named place, ready for unloading | Seller | No obligation | Seller | Buyer | | **DPU** Delivered at Place Unloaded | goods are unloaded at the named place | Seller | No obligation | Seller | Buyer | | **DDP** Delivered Duty Paid | goods arrive cleared for import, ready for unloading | Seller | No obligation | Seller | Seller | | **FAS** Free Alongside Ship | goods are alongside the vessel at the port of shipment | Buyer | No obligation | Seller | Buyer | | **FOB** Free On Board | goods are on board the vessel at the port of shipment | Buyer | No obligation | Seller | Buyer | | **CFR** Cost and Freight | goods are on board the vessel at the port of shipment | Seller | No obligation | Seller | Buyer | | **CIF** Cost, Insurance and Freight | goods are on board the vessel at the port of shipment | Seller | Seller, minimum (ICC C) | Seller | Buyer | Two things catch people out: 1. **In the C rules, risk and cost part company.** Under CPT, CIP, CFR and CIF the seller pays the freight to the destination, but the risk passes at the origin, when the goods are handed to the carrier or loaded on board. If the vessel is lost, the buyer bears the loss, which is why the buyer insures under CFR and CPT. 2. **The named place must be precise.** “FCA Mumbai” is ambiguous. “FCA Nhava Sheva, \[terminal or CFS name\]” is not. ## What changed from Incoterms 2010 - **DAT became DPU.** The place of delivery can now be anywhere, not only a terminal, and the seller unloads. - **Insurance under CIP rose to all-risks** (Institute Cargo Clauses A). CIF stays at minimum cover (clauses C), because it is mostly used for bulk commodities. - **FCA and bills of lading.** The parties can agree that the buyer’s carrier issues an on-board bill of lading to the seller, which a letter of credit often requires. - **Own transport.** Sellers and buyers can carry the goods in their own vehicles under FCA, DAP, DPU and DDP, without a third-party carrier. - **Security costs** are now allocated in the rules. ## Choosing a rule as an Indian exporter **Containers: FCA, CPT or CIP, not FOB or CIF.** A container is handed to the shipping line at a terminal, CFS or inland container depot, often days before it is loaded. Under FOB or CIF the risk stays with you until the container is on board, while it is in someone else’s yard. The ICC recommends FCA for this reason. Many Indian exporters still write “FOB” by habit; the fix is one word on the invoice. **Avoid EXW for exports from India.** Under EXW the buyer is responsible for export clearance, but Indian customs expects the exporter on the shipping bill to be the Indian party, and your GST refund, drawback and RoDTEP depend on your own shipping bill. FCA at your factory gives the buyer almost the same deal without the problem. **Bulk and break-bulk: FOB, CFR or CIF** work as intended when the goods really are loaded directly onto the vessel. **DDP only if you can act as importer abroad.** DDP makes you pay the destination’s duties and taxes and file its import declaration. Many countries will not let a foreign company do that without local registration. ## Choosing a rule as an Indian importer Under **CIF or CFR** the foreign seller books the ocean freight and you take over at the Indian port: Indian customs clearance, port and terminal charges, the delivery order and the road leg inland are yours. Under **FOB or FCA** you or your forwarder also book the main carriage, which gives you control of the schedule and the cost. Remember that Indian customs values imports on a CIF basis whatever Incoterm you buy on, adding freight and insurance to an FOB price, and deeming them where they are unknown. ## Which leg in India do you pay for? For an **export**, the road leg from your factory to the port, ICD or air cargo terminal (the *pre-carriage*) is paid by the seller under every rule except EXW. That is the leg SSL’s fleet runs. For an **import**, the road leg from the Indian port to your warehouse (the *on-carriage*) is paid by you under EXW, FCA, FAS, FOB, CFR, CIF, CPT and CIP when the named place is the port. Under DAP, DPU or DDP to an inland Indian address, the foreign seller pays for it. | Your shipment | Rule | Who books the road leg in India | | --- | --- | --- | | Export, container | FCA / CPT / CIP at the port or ICD | You (seller) | | Export | EXW | Buyer’s agent | | Import | CIF or CFR Indian port | You (buyer) | | Import | DAP your warehouse | Foreign seller’s agent | ## Writing it correctly Write the rule, the precise named place and the edition: **“FCA Jawaharlal Nehru Port, \[terminal name\], Incoterms® 2020.”** Put the same wording on the contract, the proforma invoice, the commercial invoice and, if there is one, the letter of credit application. ## How SSL fits SSL's fleet moves your cargo by road: factory to port, inland container depot or air cargo terminal for exports, and port to warehouse for imports, with the e-way bill and lorry receipt that leg needs. Across the land border, SSL runs full truckloads into Nepal and Bhutan. The sea or air leg, and customs clearance, are arranged by our desk. One desk plans the whole movement and stays accountable to you from pickup to delivery. ## Questions **Which Incoterm should an Indian exporter use for container shipments?** FCA (Free Carrier) at the port terminal, CFS or inland container depot, or CPT/CIP if you pay the freight. The ICC advises against FOB, CFR and CIF for containers, because containers are handed over before they are loaded, so risk would stay with you for goods you no longer control. Source: ICC, Incoterms 2020. **What changed in Incoterms 2020?** DAT became DPU (Delivered at Place Unloaded); CIP now requires all-risks insurance (Institute Cargo Clauses A) while CIF stays at minimum cover (clauses C); FCA can oblige the buyer's carrier to issue an on-board bill of lading to the seller; and the rules allow the seller or buyer to use its own transport. Source: ICC. **Does the Incoterm decide when ownership passes?** No. Incoterms decide delivery, risk, costs and who handles customs formalities. Transfer of ownership, payment terms and remedies for breach are set by the sales contract and the governing law. Source: ICC, Incoterms 2020. ## Sources - [International Chamber of Commerce: Incoterms® 2020](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/) - [ICC: introduction to the Incoterms® 2020 rules](https://iccwbo.org/business-solutions/incoterms-rules/) - [CBIC: Customs Valuation Rules, 2007 (CIF basis for imports)](https://www.cbic.gov.in/entities/customs) - [DGFT: Foreign Trade Policy 2023](https://www.dgft.gov.in/CP/?opt=ft-policy) Moving an export or import? Our desk plans the whole route. Tell us the cargo, the origin and the destination. Outside India, email corporatesales@sslpl.in. [Ask our desk](https://safeandsecure.in/ship/quote/?service=export) [All guides](https://safeandsecure.in/global/guides/) --- Source: https://safeandsecure.in/global/guides/incoterms-2020/ (the HTML page is the record; this markdown twin was generated from it on 2026-11-11). Publisher: Safe & Secure Logistics Private Limited, https://safeandsecure.in/. Figures and their periods: https://safeandsecure.in/facts/