Incoterms 2020 Guide
Compare the 11 Incoterms 2020 rules and understand cost, risk, and responsibility allocation.
The 11 Incoterms 2020 rules
Incoterms® are published by the International Chamber of Commerce (ICC) and define the responsibilities of buyers and sellers in international trade. There are 11 rules: 7 for any mode of transport and 4 for sea and inland waterway only. Select a term below to see its full cost, risk, and responsibility allocation.
The seller delivers the goods, cleared for export, on board the vessel at the named port of shipment. Risk transfers when goods are on board. The buyer pays for the main carriage and insurance.
Seller responsible for
- ✓Packaging
- ✓Export clearance
- ✓Inland transport to port
- ✓Loading on board the vessel
Buyer responsible for
- ✓Main carriage (freight)
- ✓Cargo insurance
- ✓Import clearance & duties
- ✓Final delivery
When goods are loaded on board the vessel at origin.
Seller pays to the ship's rail/hook. Buyer pays freight and beyond.
Traditional sea freight, especially non-containerized cargo.
Sea-only. Under Incoterms 2020, FOB should not be used for containerized cargo — the seller loses control at the terminal before loading. FCA is preferred for containers.
Need a professional Incoterms report?
Signed PDF with the full responsibility matrix for FOB, cost and risk transfer details, and a reference number.
Why use the IMEXLOG Incoterms Guide
Full responsibility matrix
See exactly which costs and risks sit with the seller and which with the buyer — for every term.
Sea vs any-mode clarity
We flag which terms are sea-only (FAS, FOB, CFR, CIF) and which work across all modes.
Practical cautions
Learn the traps — like why FOB is no longer recommended for containers, or why EXW can cause export problems.
Related trade tools
Frequently asked questions
What are Incoterms?▾
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC). They define who is responsible for what in an international sale — including cost, risk, insurance, and logistics — at every stage from the seller's premises to the buyer's destination.
How many Incoterms are there in 2020?▾
Incoterms 2020 has 11 terms: EXW, FCA, CPT, CIP, DAP, DPU, and DDP (for any mode of transport), plus FAS, FOB, CFR, and CIF (for sea and inland waterway only).
What is the difference between FOB and CIF?▾
FOB (Free on Board) means the seller delivers the goods on board the vessel at the port of shipment; the buyer pays freight and insurance. CIF (Cost, Insurance, Freight) means the seller pays freight and insurance to the destination port. Both are sea-only terms. In both cases, risk transfers when the goods are on board.
Which Incoterm is best for the seller?▾
EXW (Ex Works) places the fewest obligations on the seller — the buyer collects from the seller's premises. DDP (Delivered Duty Paid) places the most obligations on the seller — including import clearance and duties. Sellers usually prefer EXW or FCA; buyers usually prefer DDP or DAP.
Is the Incoterms Guide free?▾
Yes, the IMEXLOG Incoterms Guide is completely free with no sign-up required. If you need a professional report with a full responsibility matrix and reference number, you can optionally purchase one for $4.99.
What is included in the Professional Incoterms Report?▾
The Professional Incoterms Report includes the selected Incoterm, its full definition, cost and risk allocation, responsibility matrix for both buyer and seller, comparison with other terms, and a unique reference number. It is saved to your IMEXLOG account.
What is the difference between DAP and DDP?▾
DAP (Delivered at Place) means the seller delivers to the named destination, but the buyer clears customs and pays duties and taxes. DDP (Delivered Duty Paid) means the seller clears customs and pays all duties and taxes. DAP leaves import responsibility with the buyer; DDP places it on the seller.
What changed between Incoterms 2010 and 2020?▾
The main changes in Incoterms 2020 are: DAT (Delivered at Terminal) was renamed to DPU (Delivered at Place Unloaded); CIP now requires broader "all risks" insurance under Institute Cargo Clauses (A); FCA was updated to allow the buyer to instruct the carrier to issue an on-board bill of lading; and additional arrangements were made for buyer or seller transport using their own vehicles.
Trade Guidelines
Full reference for international trade — Incoterms, documentation, customs, compliance.
IMEXLOG Trade Desk
Source, verify, connect, and move — coordinated by a dedicated specialist.
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Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is a general educational guide, not a substitute for the current official Incoterms 2020 rules, which are available from the ICC, or for professional advice.