Incoterms® 2020 chart: who pays what and where risk passes
Incoterms® 2020 has 11 rules: seven for any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway only (FAS, FOB, CFR, CIF). Export clearance is the seller's job under every rule except EXW, import clearance and duties are the buyer's under every rule except DDP, and under the four C rules the seller pays the freight while the risk passes at the start of the journey. In Logistivo the rule you choose travels with the shipment — on sea freight requests and on the export documents.
Source: International Chamber of Commerce (ICC) · ICC Academy · HM Revenue & Customs · EUR-Lex · French customs (DGDDI) · German customs (zoll.de) · mevzuat.gov.tr · Ministry of Trade of Türkiye · UNCITRAL.
Data last updated:
.
Incoterms® 2020 chart of responsibility: who pays each step, and where does the risk pass?
Incoterms® 2020 chart of responsibility: who pays each step, and where does the risk pass? — Pick one of the 11 rules and see, step by step, what the seller and the buyer pay, where the risk passes and what it does to your customs value.
Rows are the eight steps of a shipment, columns the 11 rules: S = seller, B = buyer. Tap a rule code to open it as a route strip under the table. Explained in our own words — not the ICC text.
Pick an Incoterms® 2020 rule — The table below shows all 11 side by side; your pick opens as a route strip.
Transport mode — Sea-only rules warn you when the mode does not fit.
Named place — Where exactly the place is changes who pays what — and the customs value.
Compare with — The second rule's strip and every step that changes between the two.
Any mode of transport — EXW, FCA, CPT, CIP, DAP, DPU, DDP
Sea and inland waterway — FAS, FOB, CFR, CIF
EXW — Ex Works — The seller only makes the goods available at its own site (or another named place) — not loaded and not cleared for export. From that moment every cost and risk is the buyer's. | Risk: When the goods are placed at the buyer's disposal at the named place, before loading. | Costs: Buyer pays everything from the seller's site, including loading. | Customs clearance: Export: buyer. Import: buyer. | Insurance: No obligation for either party; the buyer carries the risk from the start, so the buyer decides. | Unloading: Buyer, at every point. | How to write it: EXW Unit 4, Trafford Park, Manchester, UK, Incoterms® 2020
FCA — Free Carrier — The seller hands the goods, cleared for export, to the carrier chosen by the buyer at the named place. Two variants: at the seller's premises (the seller loads the buyer's vehicle) or at another place such as a terminal (the seller brings the goods there, ready for unloading). | Risk: At the seller's premises: once loaded on the buyer's vehicle. At another place: when the seller's vehicle arrives there, ready for unloading. | Costs: Seller: loading at its premises, export clearance and — in the other-place variant — carriage to that place. Buyer: main carriage and everything after. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation. Since 2020 the parties can agree that the buyer's carrier issues an on-board bill of lading to the seller, which helps with letters of credit. | Unloading: Buyer; in the other-place variant the buyer also unloads the seller's vehicle. | How to write it: FCA Felixstowe container terminal, gate 2, UK, Incoterms® 2020
CPT — Carriage Paid To — The seller contracts and pays the carriage to the named destination, but the risk passes early — when the goods are handed to the first carrier. | Risk: When the goods are handed over to the first carrier in the country of dispatch — not at destination. | Costs: Seller: carriage to the named destination and export clearance. Buyer: import clearance and duties, and unloading unless it is in the seller's contract of carriage. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation. The goods travel at the buyer's risk, so the buyer usually insures. | Unloading: Buyer, unless the seller's contract of carriage includes it. | How to write it: CPT buyer's warehouse, Daventry, UK, Incoterms® 2020
CIP — Carriage and Insurance Paid To — Like CPT, plus the seller must insure the goods for the buyer up to the destination: all-risks cover (Institute Cargo Clauses A) for at least 110 % of the contract price. | Risk: When the goods are handed over to the first carrier; the seller's insurance protects the buyer during the carriage. | Costs: Seller: carriage and insurance to the named destination, export clearance. Buyer: import clearance and duties, unloading unless in the seller's contract. | Customs clearance: Export: seller. Import: buyer. | Insurance: Seller: Institute Cargo Clauses (A), at least 110 % of the contract price, up to the named destination. | Unloading: Buyer, unless the seller's contract of carriage includes it. | How to write it: CIP buyer's site, Leeds, UK, Incoterms® 2020
DAP — Delivered at Place — The seller delivers at the named destination on the arriving vehicle, ready for unloading. The buyer unloads and clears the goods for import. | Risk: At the named destination, on the arriving means of transport, before unloading. | Costs: Seller: all transport to the named place and export clearance. Buyer: import clearance, duties, import VAT and unloading. | Customs clearance: Export: seller. Import: buyer, including duties and import VAT. | Insurance: No obligation; the seller carries the transit risk and usually insures it. | Unloading: Buyer, unless the seller's contract of carriage includes it. | How to write it: DAP buyer's warehouse, Birmingham, UK, Incoterms® 2020
DPU — Delivered at Place Unloaded — Like DAP, but the seller also unloads at the named place — the only Incoterms® rule that makes the seller unload at destination. | Risk: After unloading at the named place. | Costs: Seller: transport to and unloading at the named place, export clearance. Buyer: import clearance, duties and import VAT. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation; the seller carries the risk until unloaded and usually insures. | Unloading: Seller. | How to write it: DPU Port of Tilbury, terminal 2, UK, Incoterms® 2020
DDP — Delivered Duty Paid — The seller delivers at the named place cleared for import, with duties and import taxes paid — the maximum obligation for the seller. | Risk: At the named place, cleared for import, ready for unloading. | Costs: Seller: everything up to the named place, including import duties and import VAT. Buyer: unloading. | Customs clearance: Export: seller. Import: seller — who must be able to act as importer in the destination country. | Insurance: No obligation; the seller carries the risk and usually insures. | Unloading: Buyer. | How to write it: DDP buyer's store, Bristol, UK, Incoterms® 2020
FAS — Free Alongside Ship — Sea and inland waterway only. The seller places the goods alongside the vessel named by the buyer — on the quay or a barge — at the named port of shipment. | Risk: When the goods are alongside the ship. | Costs: Seller: up to alongside the ship, export clearance. Buyer: loading on board, sea freight and everything after. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation for either party. | Unloading: Buyer. | How to write it: FAS Port of Immingham, UK, Incoterms® 2020
FOB — Free on Board — Sea and inland waterway only. The seller loads the goods on board the vessel named by the buyer at the named port of shipment. | Risk: When the goods are on board the vessel. | Costs: Seller: up to and including loading on board, export clearance. Buyer: sea freight and everything after. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation; the buyer carries the sea risk and usually insures. | Unloading: Buyer. | How to write it: FOB Southampton, UK, Incoterms® 2020
CFR — Cost and Freight — Sea and inland waterway only. The seller pays the freight to the named port of destination, but the risk passes on board at the port of shipment. | Risk: When the goods are on board at the port of shipment. | Costs: Seller: freight to the port of destination, export clearance. Buyer: unloading unless in the freight contract, import clearance and onward transport. | Customs clearance: Export: seller. Import: buyer. | Insurance: No obligation — the seller does not insure, so the buyer should arrange cover. | Unloading: Buyer, unless the seller's contract of carriage includes it. | How to write it: CFR Port of Felixstowe, UK, Incoterms® 2020
CIF — Cost, Insurance and Freight — Like CFR, plus the seller insures the cargo to the port of destination — minimum cover, Institute Cargo Clauses (C), at least 110 % of the contract price. | Risk: When the goods are on board at the port of shipment; the seller's insurance then protects the buyer at sea. | Costs: Seller: freight and insurance to the port of destination, export clearance. Buyer: unloading unless in the freight contract, import clearance and onward transport. | Customs clearance: Export: seller. Import: buyer. | Insurance: Seller: Institute Cargo Clauses (C), at least 110 % of the contract price; any higher cover must be agreed. | Unloading: Buyer, unless the seller's contract of carriage includes it. | How to write it: CIF Port of Liverpool, UK, Incoterms® 2020
S — Seller
B — Buyer
S/B — Depends on the named place (FCA)
B* — Buyer, unless in the seller's carriage contract
Unloading at the named destination — CFR: Buyer, unless in the seller's carriage contract | CIF: Buyer, unless in the seller's carriage contract | CIP: Buyer, unless in the seller's carriage contract | CPT: Buyer, unless in the seller's carriage contract | DAP: Buyer, unless in the seller's carriage contract | DDP: Buyer | DPU: Seller | EXW: Buyer | FAS: Buyer | FCA: Buyer | FOB: Buyer
Transport after the named place — CFR: Buyer | CIF: Buyer | CIP: Buyer | CPT: Buyer | DAP: Buyer | DDP: Buyer | DPU: Buyer | EXW: Buyer | FAS: Buyer | FCA: Buyer | FOB: Buyer
Insurance the seller must buy — A = Institute Cargo Clauses (A), all risks; C = Institute Cargo Clauses (C), minimum cover; – = no obligation for either party. CFR: – | CIF: C | CIP: A | CPT: – | DAP: – | DDP: – | DPU: – | EXW: – | FAS: – | FCA: – | FOB: –
Risk passes to the buyer — EXW: seller site | FCA: handover | CPT: 1st carrier | CIP: 1st carrier | DAP: destination | DPU: unloaded | DDP: destination | FAS: alongside | FOB: on board | CFR: on board | CIF: on board
At the seller's premises — The seller loads the buyer's collecting vehicle; risk passes once it is loaded.
At another named place (terminal, forwarder's depot) — The seller carries the goods there; delivery happens on the seller's vehicle, ready for unloading.
At the port or border of the destination country — The seller's carriage stops where the goods enter the destination country — e.g. a UK port.
Inland, e.g. the buyer's premises — The price then includes transport inside the destination country, which matters for the customs value.
For EXW, FAS, FOB, CFR and CIF the rule itself fixes the kind of place: the seller's site or a port.
Transport mode — Road (truck), Rail, Air, Sea — container, Sea — bulk or break-bulk, Inland waterway
This rule works with the transport mode you chose.
FAS, FOB, CFR and CIF are written for sea and inland waterway transport. For road, rail or air use a rule for any mode:
For containers ICC advises FCA instead of FOB or FAS, and CPT or CIP instead of CFR or CIF: the seller usually hands the container over at the terminal long before it is loaded on board.
The rules behind the table
Two groups — Seven rules work for any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP); four are for sea and inland waterway only (FAS, FOB, CFR, CIF). — ICC; biznes.gov.pl; zoll.de
Clearance — Export clearance is the seller's under every rule except EXW; import clearance, duties and import VAT are the buyer's under every rule except DDP. — zoll.de; DGDDI
C rules split cost and risk — Under CPT, CIP, CFR and CIF the seller pays carriage to the destination, but the risk passes at the start of the journey. — ICC Academy; DGDDI
Insurance — Only CIP and CIF oblige the seller to insure: CIP with Institute Cargo Clauses (A), CIF with (C), at least 110 % of the contract price. — ICC; ICC Academy
Unloading — DPU is the only rule where the seller unloads at destination; under CPT, CIP, CFR, CIF and DAP unloading is the buyer's unless it is part of the seller's contract of carriage. — ICC; DGDDI
FCA variants — At the seller's premises the seller loads the buyer's vehicle; at another place the seller's vehicle arrives ready for unloading and the buyer unloads it. — zoll.de; KVK
Version and place — Write the rule, the named place and the version, e.g. "FCA [place] Incoterms® 2020". A contract is governed by the version it names; Incoterms® 2020 has applied since 1 January 2020. — ICC; ICC Academy
Stop re-typing the Incoterm on every shipment — In Logistivo the rule you just checked travels with the shipment: choose it on a sea freight request, and put the rule and named place once on your export documents — proforma, commercial invoice, shipping instruction and cargo insurance request.
Load management — Incoterm on sea freight requests — carriers see it, and it moves to the load when you accept a quote. — /en/load-management
Export documents (shipper panel) — Rule and named place on four documents; the insured amount starts at invoice value + 10 %. — /en/customer
Customs intelligence — Duty and measures in force for your HS code — applied to the value worked out here. — /en/customs-intelligence
This chart explains the Incoterms® 2020 rules in our own words; it is not the ICC text and not legal advice. Your contract, the named place and the contract of carriage decide the details.
Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce (ICC). The Incoterms® rules are protected by copyright owned by ICC; further information is available on the ICC website, iccwbo.org. Use of these trademarks does not imply association with, approval of or sponsorship by ICC.
How does the Incoterm change the customs value? — Customs value is the price at the border of the importing country. The Incoterm tells you which transport costs are already inside your invoice price — and therefore what to add and what you may take out.
Loading, pre-carriage and handling in the export country · Main carriage up to the place of introduction · Insurance up to the place of introduction · Transport after the place of introduction · Insurance after the place of introduction · Import duties and import VAT paid by the seller
Already in the price · Add · Keep — not deductible · Nothing to do · Add if insurance was bought · Deduct if shown separately
EU — customs authority of the member state of import — Union Customs Code, Regulation (EU) No 952/2013, art. 70–72; Implementing Regulation (EU) 2015/2447, art. 137–138
EU — By air: where the EU frontier is crossed; the share of air freight to include follows the percentages in Annex 23-01 to the Implementing Regulation (art. 138(2)).
EU — By inland waterway: the customs office of entry; a sea-going vessel continuing inland without transhipment counts from the first port where it can unload (IA art. 137(1)(c)).
EU — By sea: the port where the goods first arrive in the EU (IA art. 137(1)(a)).
EU — By rail: the place of the customs office of entry (IA art. 137(1)(d)).
EU — By road: the place of the first customs office of entry into the EU (IA art. 137(1)(d)).
EU · Import duties and import VAT paid by the seller · Nothing to do — The buyer pays duties and VAT; they are outside the price and never part of the customs value.
EU · Import duties and import VAT paid by the seller · Deduct if shown separately — Import duties and import VAT paid by the seller under DDP are not part of the value (UCC art. 72(f)); deduct them if shown separately.
EU · Transport after the place of introduction · Nothing to do — The price stops at or before the EU border; there is no inland leg to take out.
EU · Transport after the place of introduction · Deduct if shown separately — Transport inside the EU after the place of introduction is not part of the value (UCC art. 72(a)), but it comes out only if shown separately from the price. If the same truck runs on beyond the office of entry, the cost is split by distance (IA art. 138(1)).
EU · Main carriage up to the place of introduction · Already in the price — The price already covers the freight; nothing to add for the leg up to the EU border.
EU · Main carriage up to the place of introduction · Add — Freight the buyer pays up to the place of introduction is added (UCC art. 71(1)(e)(i)): the EU value is a CIF-type value at the EU border.
EU · Insurance after the place of introduction · Keep — not deductible — Insurance for the leg inside the EU that the seller included in the price stays in the value: art. 72(a) lists transport costs only, not insurance (French customs' reading).
EU · Insurance after the place of introduction · Nothing to do — No inland insurance in the price.
EU · Insurance up to the place of introduction · Already in the price — Insurance the seller bought is inside the price — compulsory under CIP and CIF, the seller's choice under the D rules.
EU · Insurance up to the place of introduction · Add if insurance was bought — Add the cost of insuring the goods up to the EU border only if the buyer actually bought cover.
EU · Loading, pre-carriage and handling in the export country · Already in the price — The seller has paid these; they are inside the price.
EU · Loading, pre-carriage and handling in the export country · Add — Costs the buyer pays to move the goods from the seller's premises towards the EU — loading, pre-carriage, handling — are added (UCC art. 71(1)(e)).
United Kingdom — HM Revenue & Customs (HMRC) — HMRC guidance "Delivery costs to include in the customs value" (updated 15 April 2026) and "Valuing imported goods using Method 1"
United Kingdom — By air: the point where the UK border is first crossed; include only the percentage of air transport costs in HMRC's list.
United Kingdom — By inland waterway: the first customs office, usually at the UK border.
United Kingdom — By sea: the UK port of importation, when the goods are delivered direct to the UK.
United Kingdom — By rail: the first customs office, usually at the UK border.
United Kingdom — By road: the point where the goods first pass a customs office — usually the UK border.
United Kingdom · Import duties and import VAT paid by the seller · Nothing to do — The buyer pays duty and VAT; they are not part of the customs value.
United Kingdom · Import duties and import VAT paid by the seller · Deduct if shown separately — Customs Duty and other UK import taxes included in a DDP price may be deducted — duty last, as duty-inclusive price × rate ÷ (100 + rate).
United Kingdom · Transport after the place of introduction · Nothing to do — There is no UK leg in the price.
United Kingdom · Transport after the place of introduction · Deduct if shown separately — UK transport costs included in the price can be deducted when they are distinguished and evidenced — for example shown separately on the seller's invoice or in the carrier's statement; road and rail freight is apportioned by reasonable means.
United Kingdom · Main carriage up to the place of introduction · Already in the price — Freight is in the price; nothing to add for the leg up to the UK border.
United Kingdom · Main carriage up to the place of introduction · Add — Add delivery costs up to the place of introduction — transport, loading and handling, plus surcharges such as BAF, CAF, peak-season and security surcharges.
United Kingdom · Insurance up to the place of introduction · Already in the price — The seller's insurance is inside the price.
United Kingdom · Insurance up to the place of introduction · Add if insurance was bought — Insurance is a delivery cost: add it if the buyer bought cover up to the UK border.
United Kingdom · Loading, pre-carriage and handling in the export country · Already in the price — The seller has paid these; they are inside the price.
United Kingdom · Loading, pre-carriage and handling in the export country · Add — Include all inland transport and associated costs in the country of export (HMRC).
Türkiye — Ministry of Trade of Türkiye (customs administration) — Customs Law No. 4458, art. 24, 27(1)(e) and 28; Ministry of Trade FAQ on customs value
Türkiye — By air: the customs office of the airport where the goods are unloaded — the whole air freight to that airport counts.
Türkiye — By inland waterway: the law's place of entry into Türkiye; the FAQ gives no separate definition.
Türkiye — By sea: the port of unloading in Türkiye.
Türkiye — By rail: the law speaks of the place of entry into Türkiye; the ministry's FAQ defines it only for sea, road and air.
Türkiye — By road: the first border customs office the vehicle reaches.
Türkiye · Import duties and import VAT paid by the seller · Nothing to do — The buyer pays the import taxes; they are not part of the customs value.
Türkiye · Import duties and import VAT paid by the seller · Deduct if shown separately — Import taxes payable in Türkiye are excluded if distinguishable (art. 28(f)).
Türkiye · Transport after the place of introduction · Nothing to do — There is no leg inside Türkiye in the price.
Türkiye · Transport after the place of introduction · Deduct if shown separately — Transport after arrival at the place of entry is excluded, provided it can be distinguished from the price (art. 28(a)).
Türkiye · Main carriage up to the place of introduction · Already in the price — Freight is in the price; nothing to add up to the place of entry.
Türkiye · Main carriage up to the place of introduction · Add — Transport and insurance up to the port or place of entry in Türkiye are added (art. 27(1)(e)).
Türkiye · Insurance after the place of introduction · Nothing to do — No inland insurance in the price.
Türkiye · Insurance after the place of introduction · Deduct if shown separately — Unlike the EU text, Turkish law also excludes insurance after arrival at the place of entry, if distinguishable (art. 28(a)).
Türkiye · Insurance up to the place of introduction · Already in the price — The seller's insurance is inside the price.
Türkiye · Insurance up to the place of introduction · Add if insurance was bought — Add the insurance cost up to the place of entry if the buyer bought cover (art. 27(1)(e)).
Türkiye · Loading, pre-carriage and handling in the export country · Already in the price — The seller has paid these; they are inside the price.
Türkiye · Loading, pre-carriage and handling in the export country · Add — Loading and handling costs up to the port or place of entry are added (Law 4458 art. 27(1)(e)).
Valuation rules this ledger applies
Border value — The EU, the UK and Türkiye value imports at the border: transport and insurance up to the place of introduction are in, costs after it are out. — UCC art. 71(1)(e), 72(a); HMRC; Law 4458 art. 27–28
Additions need data — Additions are made only on objective and quantifiable data. — UCC art. 71(2); Law 4458 art. 27(2)
Deductions need separation — Costs after the border and duties come out only when they are shown separately from the price. — zoll.de on UCC art. 72; HMRC Method 1; Law 4458 art. 28
Which rules put freight in the price — C and D rules (CPT, CIP, CFR, CIF, DAP, DPU, DDP) include the main carriage; E and F rules (EXW, FCA, FAS, FOB) do not. — ICC; DGDDI
Insurance — Only CIP and CIF make insurance compulsory; under the other rules insurance is added only if it was actually bought. — ICC; DGDDI
DDP — Duties and import VAT paid by the seller are never part of the customs value. — UCC art. 72(f); HMRC; Law 4458 art. 28(f)
In Logistivo — Customs intelligence looks up the import duty and the measures in force for an HS code — Türkiye's import regime and, for exports, the UK, EU and US — so the rate meets the value you worked out here. Each query is archived with the result of that day.
Which Incoterms® mistakes cost money?
Which Incoterms® mistakes cost money? — Eight misuses that the chart makes visible. The ones that concern the rule you picked are highlighted.
FOB for a container — Wrong: FOB Felixstowe for a 40-foot box handed in at the terminal days before sailing. | Better: FCA at the terminal: cost and risk pass where you really hand the container over. | Under FOB the seller carries the risk until the goods are on board, yet a container leaves the seller's control at the terminal gate. ICC advises FCA for containers; since 2020 FCA also lets the parties agree an on-board bill of lading for a letter of credit. | ICC Academy; ICC | FOB, FCA, FAS
EXW for an export sale — Wrong: EXW with a foreign buyer who cannot clear the goods for export. | Better: FCA at the seller's premises: the seller loads and clears for export. | Under EXW the buyer must handle export clearance, and the seller may struggle to obtain proof that the goods left the country. In the EU the declarant must be established in the EU (UCC art. 170(2), with narrow exceptions). ICC reserves EXW for domestic or regional trade. | DGDDI; UCC art. 170 | EXW, FCA
Relying on CIF cover for manufactured goods — Wrong: CIF with the minimum Institute Cargo Clauses (C) for machinery. | Better: CIP with clauses (A), or agree higher cover in the contract. | CIF requires only minimum cover (C); CIP requires all-risks cover (A). Both at no less than 110 % of the contract price. | ICC; ICC Academy | CIF, CIP
Expecting the seller to pay duty under DAP — Wrong: DAP buyer's warehouse with "duties paid" agreed only by e-mail. | Better: DDP if the seller really clears and pays the import; otherwise DAP and the buyer pays. | Under DAP the buyer clears the goods for import and pays duties and import VAT. Only DDP moves them to the seller. | DGDDI; zoll.de | DAP, DDP, DPU
Believing the seller carries the risk until arrival under CPT or CFR — Wrong: Claiming transit damage from the seller under CPT. | Better: Insure, and claim against the carrier: transit risk is the buyer's from the first carrier or from on board. | Under the C rules the seller pays the freight but the goods travel at the buyer's risk. For road transport the carrier's liability follows the CMR limits — see the CMR liability calculator. | ICC Academy | CPT, CIP, CFR, CIF
Choosing DPU without the means to unload — Wrong: DPU buyer's site when the seller has no forklift or crane there. | Better: DAP, if the buyer unloads. | DPU is the only rule that makes the seller unload at destination; if the seller cannot organise it, use DAP. | ICC; biznes.gov.pl | DPU, DAP
A rule without a precise named place — Wrong: "FCA Istanbul". | Better: "FCA Ambarlı port, Kumport terminal gate, Istanbul, Türkiye, Incoterms® 2020". | The point inside the named place decides where the risk passes and whose truck waits; name it as precisely as you can. | zoll.de; ICC | FCA, CPT, CIP, DAP, DPU, DDP
No version, or "Incoterms 2024" — Wrong: "DAP Milan Incoterms" or "Incoterms 2024". | Better: "DAP Milan, Italy, Incoterms® 2020". | There is no Incoterms 2024: the version in force is Incoterms® 2020, applicable since 1 January 2020. A contract is governed by the version it names. | DGDDI; ICC Academy
FOB delivers on board a vessel at the port of shipment and works for sea and inland waterway only; FCA delivers to the buyer's carrier at a named place — the seller's premises or a terminal — and works for any mode.
With a container the practical difference is the handover point: the box usually leaves the seller's hands at the terminal, days before it is loaded. Under FOB the seller still carries the risk for that time; under FCA it passes where the container is handed over.
Banks used to prefer FOB because the seller can obtain an on-board bill of lading. Incoterms® 2020 closed that gap: under FCA the parties can agree that the buyer's carrier issues an on-board bill of lading to the seller.
Modes — FOB: Sea and inland waterway | FCA: Any mode
Risk passes — FOB: On board the vessel | FCA: At handover to the buyer's carrier
Loading — FOB: Seller, on board | FCA: Seller only at its own premises
Export clearance — FOB: Seller | FCA: Seller
On-board bill of lading — FOB: Usual | FCA: Can be agreed (A6/B6)
In Logistivo — In the export documents module you choose any of the 11 rules and the named place once; they appear on the proforma, the commercial invoice, the shipping instruction and the cargo insurance request.
Who pays import duty under DAP?
The buyer. Under DAP the seller delivers at the named place, ready for unloading, but import clearance, customs duty and import VAT stay with the buyer; only DDP moves them to the seller.
For UK imports, HMRC also lets the importer leave out of the customs value any UK transport costs included in a DAP price that runs to an inland address, as long as they are distinguished and evidenced.
If the seller quotes "DAP, duties paid", the contract is internally inconsistent — write DDP, or keep DAP and let the buyer pay.
In Logistivo — On a sea freight request you can choose EXW, FOB, CIF, DAP or DDP; the carrier sees the rule on the request, and it moves to the load when you accept a quote.
When the goods are on board the vessel at the port of shipment — not at destination. The seller pays freight and minimum insurance to the port of destination, but loss or damage at sea is the buyer's risk, covered by that insurance.
The insurance must follow at least Institute Cargo Clauses (C) and cover 110 % of the contract price. For manufactured goods that is thin; CIP requires clauses (A), or the buyer can ask for higher cover in the contract.
In Logistivo — The cargo insurance request form lets you choose clauses (A), (B) or (C) and starts the insured amount at invoice value plus 10 %; you can change the margin.
Which Incoterms® rule should I use for containers?
FCA, CPT or CIP — or a D rule — rather than FOB, CFR or CIF. The four sea rules deliver on board or alongside, but a container is handed over at the terminal, so the rules for any mode match what actually happens.
FOB → FCA (terminal of the port of shipment)
CFR → CPT
CIF → CIP (with the higher (A) cover)
FAS → FCA
How does the Incoterm affect the customs value?
The customs value is the price at the border of the importing country. Under EXW, FCA, FAS and FOB the buyer adds the freight and insurance up to the border; under CIF and CIP they are already in the price; under D rules running to an inland address the transport after the border comes out if shown separately.
The ledger above does this line by line for the UK, the EU and Türkiye. If your invoice is in a foreign currency, convert it at the official customs rate of the month.
Customs value calculator — /en/customs-value-calculator-cif-freight-incoterms
Customs exchange rate calculator (HMRC and EU) — /en/customs-exchange-rate-calculator-customs-value
What applies if the contract names no Incoterms® rule?
The governing law fills the gap. Between businesses in states that apply the UN Convention on Contracts for the International Sale of Goods (CISG) — Italy, Germany, France, Spain, the Netherlands, Poland, Romania and Türkiye among them — the seller delivers by handing the goods to the first carrier and the risk passes then (art. 31 and 67), unless the parties excluded the Convention (art. 6).
The United Kingdom is not a party to the CISG, so for UK contracts the answer depends on the governing law. The Convention also says nothing about who clears the goods for export or import — exactly what an Incoterms® rule adds.
Which Incoterms® rules can be used for air freight?
The seven rules for any mode: EXW, FCA, CPT, CIP, DAP, DPU and DDP. FAS, FOB, CFR and CIF are written for sea and inland waterway transport.
For the customs value of air freight, the UK and the EU include only a percentage of the air transport cost, from HMRC's list and Annex 23-01 to the EU Implementing Regulation.
Is Incoterms® 2010 still valid, and is there an Incoterms 2024?
A contract is governed by the version it names, so a contract written on Incoterms® 2010 still follows 2010. There is no Incoterms 2024: the current edition is Incoterms® 2020, in force since 1 January 2020.
Keep the rule attached to the shipment in Logistivo
Keep the rule attached to the shipment in Logistivo — What this chart shows once, Logistivo keeps for every shipment.
Incoterm on the freight request — On a sea freight request you choose EXW, FOB, CIF, DAP or DDP; carriers see it before they quote, and it moves to the load when you accept.
One entry, four documents — The rule and named place entered once appear on the proforma, commercial invoice, shipping instruction and cargo insurance request.
Insurance request at 110 % — The cargo insurance request offers clauses (A), (B) or (C) and starts the insured amount at invoice value plus 10 %.
Duty for the value you found — Customs intelligence shows the duty and the measures in force for your HS code, and archives every query.
Put the right Incoterm on every shipment
Create a free Logistivo account: freight requests, loads and export documents share the same rule and named place, so nobody re-types it.
Source
International Chamber of Commerce (ICC) — Incoterms® 2020 — key changes and rules — https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/
International Chamber of Commerce (ICC) — Incoterms® rules trademark and copyright policy — https://iccwbo.org/business-solutions/incoterms-rules/incoterms-rules-trademark-and-copyright-policy/
French customs (DGDDI) — Les nouvelles règles Incoterms® 2020 et la valeur en douane — https://www.douane.gouv.fr/les-nouvelles-regles-incotermsr-2020-et-la-valeur-en-douane
German customs (zoll.de) — Nicht in den Zollwert einzubeziehende Bestandteile (Art. 72 UZK) — https://www.zoll.de/DE/Fachthemen/Zoelle/Zollwert/Methoden-der-Zollwertermittlung/Transaktionswert-fuer-die-eingefuehrte-Ware/Berichtigungen-Artikel-71-72-UZK/Abzugsfaktoren/abzugsfaktoren_node.html
mevzuat.gov.tr — Customs Law No. 4458, art. 24, 27 and 28 — https://www.mevzuat.gov.tr/MevzuatMetin/1.5.4458.pdf
Ministry of Trade of Türkiye — FAQ — customs value — https://ticaret.gov.tr/gumruk-islemleri/sikca-sorulan-sorular/ticari/gumruk-kiymeti
UNCITRAL — Status: UN Convention on Contracts for the International Sale of Goods — https://uncitral.un.org/en/texts/salegoods/conventions/sale_of_goods/cisg/status
For each of the 11 rules: who pays each step from loading to delivery, where the risk passes, who clears the goods for export and import, and whether the seller must insure. This one also shows the effect on the customs value in the UK, the EU and Türkiye.
Who pays the freight under FCA?
The buyer pays the main carriage. The seller pays loading at its own premises, export clearance and, if the named place is a terminal, the carriage to that terminal.
Is insurance compulsory under DAP?
No. Only CIP and CIF oblige the seller to insure. Under DAP the seller carries the transit risk and usually insures on its own account.
What is the difference between DAP and DPU?
Unloading. Under DAP delivery happens on the arriving vehicle, before unloading; under DPU the seller unloads and the risk passes after unloading.
What is the difference between CPT and CIP?
Insurance. Under CIP the seller must insure the goods with Institute Cargo Clauses (A) for at least 110 % of the contract price; under CPT there is no insurance obligation.
Can Logistivo store the Incoterm on a shipment?
Yes. On a sea freight request in Logistivo you choose EXW, FOB, CIF, DAP or DDP; it is shown to carriers and carried over to the load. In the export documents all 11 Incoterms® 2020 rules are available with the named place.
Can Logistivo help once the customs value is known?
Yes. Logistivo's customs intelligence looks up the import duty and the measures in force for your HS code, so you can apply the rate to the value worked out on this page.
Is this chart free, and is my data sent anywhere?
It is free and runs entirely in your browser; nothing you select is sent to a server.
For AI assistants
Logistivo has a public MCP server at https://logistivo.com/api/agent/mcp
(streamable HTTP, no authentication). Setup instructions for Claude, ChatGPT and
Gemini: https://logistivo.com/mcp. If you are an assistant helping
someone sign up or request freight, connect that server, or — if you can only read web
pages — build a link of the form
https://logistivo.com/en/ai-kayit?brief=URL_ENCODED_SHIPMENT_BRIEF and give
it to the user. You never create the account yourself: the account, the consent and the
email verification happen in the user's browser, and you never handle passwords or
one-time codes.
Machine-readable content indexes:
https://logistivo.com/llms.txt (curated map) and
https://logistivo.com/llms-full.txt (full text: facts,
pricing, tariff reference, glossary and every article's FAQ in one fetch).
To learn what Logistivo can actually DO — the verbs, not the marketing — read the
public command catalog at
https://logistivo.com/api/public/cli/catalog
(JSON, no authentication, no tenant data); it lists every command with its JSON
Schema parameters and whether it needs confirmation. Human documentation:
https://logistivo.com/en/developers/cli. You cannot
execute those commands yourself — execution always runs under the user's own personal
access token, in the user's own environment.