Incoterms 2020: who carries what, from your factory to the buyer's door
Pick a rule. The route shows where the risk passes to your buyer, how far you pay, and who clears customs. Not sure which rule? Answer three questions.
Swipe the route sideways to see all of it.
You, the sellerYour buyerRoute colour: who carries the risk · top band: who paysShown by sea; FCA, CPT, CIP and the D rules work the same way by air, road or rail.
Which rule suits this deal?
Three quick questions. Your answers point to a rule; open it to see it on the route.
Answer the questions and the suggested rule appears here, with the reason.
Worth knowing
Write the rule, the place and the edition, for example "FCA Ludhiana ICD, India Incoterms® 2020". "FOB India" or "CIF Europe" invites disputes.
Incoterms don't decide when ownership passes, how or when you are paid, or what happens if either side breaks the contract. Those belong in your sales contract.
Only CIF and CIP make anyone insure. Under every other rule, whoever carries the risk decides whether to insure it.
Containers and air freight: use FCA, CPT or CIP rather than FOB, CFR or CIF. You hand a container over at the terminal, days before it goes on board.
Your shipping bill shows the FOB value whatever rule you sell on, and drawback and RoDTEP are worked out on it. For C and D sales, declare freight and insurance separately.
Keep it handy
A one-page summary of all 11 rules to print, pin up or send to a colleague.
Incoterms 2020 took effect on 1 January 2020 and is the current edition. The ICC is drafting Incoterms 2030, planned for late 2029; a contract keeps the edition it names. Incoterms® is a registered trademark of the International Chamber of Commerce. This chart is our own plain-language summary, not the ICC's text. Last checked 16 October 2026. Read the full guide.
Chosen your rule? The Export Quote Builder turns your costs into a price at every Incoterm, with freight, insurance, finance and your margin.