# Incoterms 2020 guide

> All 11 Incoterms 2020: who pays freight and insurance, where risk transfers, and who clears the import.

Source: https://www.freightspot.com/en/resources/incoterms · Publisher: FreightSpot

| Incoterm | Mode | Main carriage | Insurance | Import clearance |
| --- | --- | --- | --- | --- |
| EXW — Ex Works | Any mode | Buyer | Not required | Buyer |
| FCA — Free Carrier | Any mode | Buyer | Not required | Buyer |
| CPT — Carriage Paid To | Any mode | Seller | Not required | Buyer |
| CIP — Carriage & Insurance Paid To | Any mode | Seller | Seller (min. ICC-A) | Buyer |
| DAP — Delivered At Place | Any mode | Seller | Not required | Buyer |
| DPU — Delivered at Place Unloaded | Any mode | Seller | Not required | Buyer |
| DDP — Delivered Duty Paid | Any mode | Seller | Not required | Seller |
| FAS — Free Alongside Ship | Sea and inland waterway only | Buyer | Not required | Buyer |
| FOB — Free On Board | Sea and inland waterway only | Buyer | Not required | Buyer |
| CFR — Cost and Freight | Sea and inland waterway only | Seller | Not required | Buyer |
| CIF — Cost, Insurance and Freight | Sea and inland waterway only | Seller | Seller (min. ICC-C) | Buyer |

## EXW — Ex Works

- **Risk transfers**: At the seller's premises, once the goods are made available.
- **Mode**: Any mode

Maximum burden on the buyer; useful when you control the entire chain from origin.

## FCA — Free Carrier

- **Risk transfers**: When the goods are handed to the buyer's nominated carrier at the agreed point.
- **Mode**: Any mode

The go-to alternative to EXW for exports: the seller handles export clearance.

## CPT — Carriage Paid To

- **Risk transfers**: When the goods are handed to the first carrier — before the main leg.
- **Mode**: Any mode

The seller pays the freight, but risk rides with the buyer from origin.

## CIP — Carriage & Insurance Paid To

- **Risk transfers**: When the goods are handed to the first carrier — before the main leg.
- **Mode**: Any mode

Same as CPT, but since Incoterms 2020 the seller must provide broad coverage (ICC-A).

## DAP — Delivered At Place

- **Risk transfers**: At the named destination, ready for unloading.
- **Mode**: Any mode

The buyer only unloads and clears import customs.

## DPU — Delivered at Place Unloaded

- **Risk transfers**: At destination, once the goods are unloaded.
- **Mode**: Any mode

The only Incoterm where the seller takes on unloading at destination.

## DDP — Delivered Duty Paid

- **Risk transfers**: At destination, with import duties already paid by the seller.
- **Mode**: Any mode

Maximum obligation for the seller; importing into Mexico this way requires a local tax setup.

## FAS — Free Alongside Ship

- **Risk transfers**: When the goods are placed alongside the vessel at the port of shipment.
- **Mode**: Sea and inland waterway only

Common for bulk and project cargo; rare for containerized freight.

## FOB — Free On Board

- **Risk transfers**: Once the goods are on board the vessel at the port of shipment.
- **Mode**: Sea and inland waterway only

The classic for imports from Asia: you control the international freight.

## CFR — Cost and Freight

- **Risk transfers**: On board the vessel at origin, even though the seller pays the freight.
- **Mode**: Sea and inland waterway only

The seller books the vessel; transit risk belongs to the buyer.

## CIF — Cost, Insurance and Freight

- **Risk transfers**: On board the vessel at origin, even though the seller pays freight and insurance.
- **Mode**: Sea and inland waterway only

Like CFR but with minimum cover (ICC-C); consider whether to top up the coverage.

Informational guide based on the ICC Incoterms® 2020 rules.

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