Reference guide

Incoterms 2020 guide

Eleven rules, one table: where risk passes, who pays the main carriage, and who clears customs.

This free Safe & Secure Logistics guide puts all eleven Incoterms 2020 rules in one table. For each rule it shows where risk passes, who pays the main carriage and insurance, and who clears export and import customs, with examples from Indian trade. Use it to agree the right term before you ship.

Rule	Mode	Risk passes	Main carriage paid by	Export clearance	Import clearance
EXW Ex Works	Any	Goods made available at seller’s premises, not loaded	Buyer	Buyer	Buyer
FCA Free Carrier	Any	Handed to the buyer’s carrier at the named place (loaded, if at seller’s premises)	Buyer	Seller	Buyer
CPT Carriage Paid To	Any	Handed to the first carrier	Seller (to destination)	Seller	Buyer
CIP Carriage and Insurance Paid To	Any	Handed to the first carrier	Seller + insurance (ICC A cover)	Seller	Buyer
DAP Delivered at Place	Any	At the named destination, ready for unloading	Seller	Seller	Buyer
DPU Delivered at Place Unloaded	Any	At the named destination, unloaded	Seller (incl. unloading)	Seller	Buyer
DDP Delivered Duty Paid	Any	At the named destination, import-cleared, ready for unloading	Seller	Seller	Seller (incl. duties)
FAS Free Alongside Ship	Sea / inland waterway	Alongside the vessel at the port of shipment	Buyer	Seller	Buyer
FOB Free On Board	Sea / inland waterway	On board the vessel at the port of shipment	Buyer	Seller	Buyer
CFR Cost and Freight	Sea / inland waterway	On board at the port of shipment	Seller (to destination port)	Seller	Buyer
CIF Cost, Insurance and Freight	Sea / inland waterway	On board at the port of shipment	Seller + insurance (ICC C cover)	Seller	Buyer

How it works

The method, and its limits

Always write the rule with a precise place and the version: for example “FCA Nhava Sheva CFS, Incoterms® 2020”. The rule decides where risk passes and who arranges each task; it does not set the price, ownership or payment terms.

For Indian exports, FCA is usually cleaner than EXW (the exporter should clear export customs) and cleaner than FOB for containers. See exporting from India, step by step.

Sources

Where the figures come from

International Chamber of Commerce: Incoterms® 2020

Figures are general information, checked on 29 Sep 2026. Rules change; follow the source before acting.

Frequently asked questions

How many Incoterms 2020 rules are there?

Eleven: seven for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway only (FAS, FOB, CFR, CIF).

What is the difference between FOB and CIF?

Under both, risk passes when goods are on board at the port of shipment. Under CIF the seller also pays the ocean freight and buys minimum (ICC C) insurance to the destination port.

Should I use FOB for container shipments?

The ICC suggests FCA rather than FOB for containers, because containers are handed over at a terminal or CFS before they are loaded on board.

What changed from Incoterms 2010?

DAT became DPU; CIP now requires all-risks (ICC A) cover while CIF stays at minimum (ICC C); FCA allows an on-board bill of lading; and own-transport by seller or buyer is recognised.

Who clears export customs under EXW?

The buyer, which is awkward for Indian exports because export clearance needs the exporter’s details. FCA is often a better choice.

Do Incoterms decide who owns the goods?

No. Incoterms allocate costs, risk and tasks between seller and buyer. Ownership and payment are set by the sale contract.

Which Incoterm fits a road shipment to Nepal?

Any-mode rules such as FCA, CPT or DAP. Name the exact place, for example “DAP Kathmandu” or “FCA Raxaul ICP”.

Can Safe & Secure Logistics help with the international leg?

Yes. SSL’s desk arranges ocean, air and customs clearance and runs the Indian road legs.

Want an exact price?

Our desk confirms your lane, vehicle and price, usually within minutes.

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