PBL RESOURCES
Incoterms® 2020
A practical overview of seller/buyer responsibilities for transport, insurance, delivery and customs under common Incoterms® 2020 rules.
Incoterms® 2020 at a Glance
EXW
Ex Works
FCA
Free Carrier
CPT
Carriage Paid To
CIP
Carriage and Insurance Paid To
DAP
Delivered at Place
DPU
Delivered at Place Unloaded
DDP
Delivered Duty Paid
FAS
Free Alongside Ship
FOB
Free on Board
CFR
Cost and Freight
CIF
Cost, Insurance and Freight
The chosen Incoterm and named place/port should be stated clearly in the commercial contract. Always use current ICC guidance for contractual decisions.
Why Incoterms Matter to Freight Planning
Because the rule defines where cost, transport responsibility and risk transfer between seller and buyer. That changes who books freight and who is responsible for parts of the movement.
What About Customs Clearance?
Different Incoterms allocate import/export formalities differently. The commercial term should match what each party can actually perform in the relevant country.
FAQ
Incoterms — Quick Questions
Do Incoterms determine ownership of the goods?
Incoterms focus on delivery responsibilities, costs and risk. They do not replace contract terms covering ownership or payment.
Are FOB and CIF used for every transport mode?
FOB and CIF are rules intended for sea and inland-waterway transport.