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Interactive Incoterms 2020 guide

Cost, risk, insurance and clearance responsibility across all eleven delivery terms.

The delivery term fixes who pays for each leg, where the risk of loss or damage passes, and which party handles export and import clearance. Select a term to see the full breakdown of obligations.

Group EDeparture

Group FMain carriage unpaid

Group CMain carriage paid

Group DArrival

FOB

Free On Board

Sea and inland waterway only

Delivery point

Port of loading, on board the vessel

Risk transfers

When the goods are on board the vessel at the load port

Main carriage contract

Buyer

Export clearance

Seller

Import clearance

Buyer

Insurance

No contractual obligation

Unloading at destination

Buyer, at destination

The most common term in container imports. The buyer selects the line, the discharge port and the schedule, and can compare rates. Usually the best option for an importer who wants control of destination costs.

A note on choosing

Under C-terms the seller books the main carriage but risk passes at origin, so the buyer carries transit risk without controlling the carrier. Under D-terms the seller is responsible to destination, but that responsibility is priced into the goods. The right choice depends on each party's operational capability, not on which term is most common.

Key changes in the 2020 revision

DAT was renamed DPU and is no longer restricted to a terminal. CIP now requires all-risks cover, while CIF still permits minimum cover. FCA added the option to agree an on-board notation on the bill of lading.

Have your delivery term reviewed before you approve the proforma.

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Port terminal linking sea, rail and road

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