Incoterms 2020

The 11 Incoterms® 2020 trade terms explained (FOB, CIF, DDP…).

The 11 Incoterms® 2020 — the standard international trade terms that define who is responsible for shipping, insurance, clearance and costs, and exactly where risk passes from seller to buyer. From EXW (buyer does almost everything) to DDP (seller does almost everything), each term is explained with its transport mode and risk-transfer point. Runs fully in your browser — no API.

How to use Incoterms 2020

  1. Open the list

    Launch this free Incoterms 2020 reference to look up every trade term in one searchable table.

  2. Find a term

    Search for a term like FOB, CIF, EXW or DDP to jump straight to it.

  3. Filter by mode

    Use the filter to show terms for any transport mode or sea/waterway freight only.

  4. Check risk transfer

    See exactly where responsibility and risk pass from the seller to the buyer.

  5. Read the meaning

    Each term has a plain-English description of who does what in the shipment.

  6. Use in contracts

    Pick the right Incoterm for your sale and state it clearly (e.g. 'FOB Mumbai, Incoterms 2020').

Frequently asked questions

What are Incoterms?

Incoterms (International Commercial Terms) are a set of 11 standardised trade terms published by the International Chamber of Commerce (ICC). They define who — the buyer or seller — is responsible for the cost, risk, insurance, and export/import clearance at each stage of an international (or domestic) shipment.

What is the difference between FOB and CIF?

Under FOB (Free on Board), the seller's responsibility and risk end once the goods are on board the ship, and the buyer pays freight and insurance. Under CIF (Cost, Insurance and Freight), the seller pays the freight and minimum insurance to the destination port, though risk still passes once goods are on board at origin.

What is the difference between EXW and DDP?

EXW (Ex Works) is the minimum obligation for the seller — the buyer collects the goods from the seller's premises and handles everything else. DDP (Delivered Duty Paid) is the maximum — the seller delivers to the buyer's door with all duties and costs paid. They're the two extremes of the Incoterms range.

How many Incoterms are there in 2020?

There are 11 Incoterms in the 2020 edition: seven for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway transport only (FAS, FOB, CFR, CIF).

Is this Incoterms tool free?

Yes — it's completely free with no sign-up. The list runs in your browser from a built-in dataset, so there are no limits, no API keys and nothing is uploaded. Incoterms® is a trademark of the ICC; this is an educational reference.

What does FOB mean in shipping?

FOB (Free On Board) means the seller is responsible for the goods and costs until they're loaded onto the vessel at the port of origin; from that point, the buyer takes on the risk and pays freight and insurance. It applies only to sea and inland-waterway transport.

Which Incoterm is best for a buyer?

DDP (Delivered Duty Paid) is the most buyer-friendly — the seller handles everything including transport, insurance, export/import clearance and duties, delivering to your door. EXW is the opposite extreme, where the buyer does almost everything from the seller's premises onward.

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