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Incoterms 2020 Chart & Calculator: Who Pays What
Incoterms 2020 allocate cost, risk and delivery duties between seller and buyer: who pays freight, insurance, export and import clearance, and where risk transfers. They do not transfer title to the goods or set payment terms; those belong in the sales contract. Source: ICC Incoterms 2020 (Publication 723).
ICC has started work on Incoterms 2030; Incoterms 2020 remains current.
Which Incoterm should I use?
For containerised or multimodal shipments: use FCA, CPT, or CIP - never FOB, CFR, or CIF. The ICC has explicitly cautioned that FOB/CFR/CIF are sea-only rules and cause LC discrepancies when the seller delivers to a container terminal rather than a vessel's rail.
For Letters of Credit: FCA, CPT, and CIP are the most bankable choices because they support on-board B/L notation under UCP 600 Art. 20. For bulk commodity shipments by chartered vessel, FOB and CIF remain standard. Use the Incoterms Selector Wizard if you are unsure. When your deal turns on details these rules don't cover, get case-specific Incoterm advice from Trade Expert AI.
Incoterms 2020 chart: who pays what under all 11 rules
Every cost stage for every rule. "Seller" means the seller bears that cost under the rule; "Buyer" means the buyer bears it. Import duty is the buyer's cost under all 11 rules except DDP, where the seller pays duty and import taxes.
| Incoterm | Export Packaging | Inland Transport (Origin) | Export Clearance | Loading on Vessel | Main Carriage (Freight) | Insurance | Destination Charges | Import Clearance | Import Duty |
|---|---|---|---|---|---|---|---|---|---|
| EXW Ex Works | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FCA Free Carrier | Seller | Seller | Seller | Buyer (seller may arrange on-board B/L, Incoterms 2020 A6/B6) | Buyer | Buyer | Buyer | Buyer | Buyer |
| FAS Free Alongside Ship | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer |
| FOB Free On Board | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer | Buyer |
| CFR Cost and Freight | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer |
| CIF Cost, Insurance and Freight | Seller | Seller | Seller | Seller | Seller | Seller (min ICC-C) | Buyer | Buyer | Buyer |
| CPT Carriage Paid To | Seller | Seller | Seller | Seller | Seller | Buyer | Buyer | Buyer | Buyer |
| CIP Carriage and Insurance Paid To | Seller | Seller | Seller | Seller | Seller | Seller (min ICC-A, all-risks) | Buyer | Buyer | Buyer |
| DAP Delivered at Place | Seller | Seller | Seller | Seller | Seller | Seller (recommended) | Seller | Buyer | Buyer |
| DPU Delivered at Place Unloaded | Seller | Seller | Seller | Seller | Seller | Seller (recommended) | Seller (incl. unloading) | Buyer | Buyer |
| DDP Delivered Duty Paid | Seller | Seller | Seller | Seller | Seller | Seller (recommended) | Seller | Seller | Seller |
Last reviewed against Incoterms 2020 (ICC Publication 723E), September 2026.
Related: CIF vs FOB guide · EXW vs FCA guide · landed cost calculator · LC cost calculator
Incoterms LC Compatibility Matrix
| Term | LC Rating | Primary Issue |
|---|---|---|
| FOB/CIF | Good* | Risk gap for containers before loading |
| FCA/CIP | Excellent | Requires on-board B/L addendum A6/B6 |
| EXW | Risky | Seller lacks control of B/L and export docs |
| DDP | Risky | Import clearance delays block LC presentation |
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Overview & methodology
What changed in Incoterms 2020?
Incoterms® 2020 (ICC Publication 723E) replaced the 2010 rules with three key changes: DAT became DPU (Delivered at Place Unloaded), expanding delivery points beyond terminals; CIP raised its insurance floor from Clauses C to Clauses A (all-risks); and FCA gained an on-board B/L option - the carrier can issue an on-board notation at the seller's request, solving the longstanding LC presentation problem for containerised FCA shipments.
FOB vs CIF: who pays import duty?
Import duty responsibility at a glance
Practical effect: on the same cargo, a CIF invoice produces a higher dutiable value than an FOB invoice in CIF-valuation countries, so the duty and VAT/GST amounts rise even though the duty rate is unchanged. See who pays duty under CIF and FOB for the valuation-basis table by market, and the landed cost calculator to price it.
CIF vs FOB: who pays what?
Numerical Example: CIF vs FOB for a $50,000 Shipment
Under FOB, the buyer arranges and pays the main carriage. Under CIF, the seller pays freight and insurance - but risk still transfers at origin (when cargo passes the ship's rail), not at destination.
FOB and CIF are sea-only - why does it matter for containers?
Container cargo is handed to the carrier at a Container Yard (CY) before being loaded onto the vessel. Under FOB, risk transfers when goods pass the ship's rail - but for CY delivery, the seller loses control of the goods well before that point, creating a risk gap. Use FCA instead of FOB and CIP instead of CIF for containerised trade.
Method note: calculations run in your browser using the formulas and published rule books cited on this page. Results are free estimates for planning, with no login required, and should be confirmed with your bank, broker or the official source before you commit.
Frequently asked questions
How many Incoterms are there in 2020?
Eleven. Seven for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway only (FAS, FOB, CFR, CIF).
What replaced DAT in Incoterms 2020?
DPU (Delivered at Place Unloaded) replaced DAT (Delivered at Terminal), broadening the delivery point beyond terminals to any place where the seller unloads.