Incoterms 2020 Guide

All 11 International Commercial Terms explained — who pays what, who bears risk, and which modes they apply to.

All 11 Incoterms 2020 Seller vs Buyer responsibility split Mode of transport applicability
Seller responsibility
Buyer responsibility
EXW
Ex Works
Seller makes goods available at their premises only. Buyer bears all risks and costs from that point.
All Modes
Seller 100% Buyer 0%
FCA
Free Carrier
Seller delivers goods to a named carrier/location. Risk transfers upon handover to carrier.
All Modes
Seller 40% Buyer 60%
CPT
Carriage Paid To
Seller pays freight to named destination but risk transfers at origin upon handover to first carrier.
All Modes
Seller 60% Buyer 40%
CIP
Carriage and Insurance Paid To
Like CPT but seller also provides cargo insurance to named destination.
All Modes
Seller 65% Buyer 35%
DAP
Delivered at Place
Seller delivers goods ready for unloading at named destination. Buyer pays import duties.
All Modes
Seller 85% Buyer 15%
DPU
Delivered at Place Unloaded
Seller delivers and unloads goods at named destination. Buyer pays import duties.
All Modes
Seller 88% Buyer 12%
DDP
Delivered Duty Paid
Seller bears maximum responsibility — all costs, risks, and duties to buyer premises.
All Modes
Seller 100% Buyer 0%
FAS
Free Alongside Ship
Seller delivers goods alongside the vessel at origin port. Risk transfers at that point.
Sea
Seller 30% Buyer 70%
FOB
Free on Board
Seller loads goods on board vessel at origin port. Risk and cost transfer at ship's rail.
Sea
Seller 40% Buyer 60%
CFR
Cost and Freight
Seller pays freight to destination port but risk transfers when goods are on board at origin.
Sea
Seller 55% Buyer 45%
CIF
Cost, Insurance and Freight
Like CFR but seller also provides minimum cargo insurance. Risk still transfers at origin port.
Sea
Seller 60% Buyer 40%

Source: ICC Incoterms® 2020. For specific trade transactions consult your MEILS freight coordinator or legal advisor.

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