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Incoterms

Incoterms Selector Wizard

Answer four questions to get a recommended Incoterm rule with the reasoning, LC compatibility and typical alternatives.

Incoterms 2020
Reviewed against UCP 600 · Incoterms 2020 · WCO HSLast reviewed July 2026
Recommended Incoterm
CIP
Carriage and Insurance Paid To

Any mode, seller arranges carriage and insurance - CIP requires ICC (A) all-risks cover under Incoterms 2020.

Risk transfer: When goods handed to first carrier at origin
Insurance: Seller - Institute Cargo Clauses (A) - all-risks (upgraded in Incoterms 2020)
LC suitability: best
Alternatives: CIF (bulk sea only)

Frequently asked questions

How do I choose the right Incoterm?

Start with the mode (sea-only rules FAS/FOB/CFR/CIF vs any-mode EXW/FCA/CPT/CIP/DAP/DPU/DDP), then the point where you want risk to pass, then who arranges main-carriage insurance and import clearance. LC transactions favour FCA, CIP and CPT because on-board B/L requirements under FOB/CFR/CIF cause frequent discrepancies with container shipments.

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