Incoterms® 2020–2030 explained

All 11 Incoterms® 2020 at a glance

Incoterms® 2020 consist of 11 rules. Seven of them can be used for any mode of transport, such as road, air and rail. Four are intended for sea and inland waterway transport only. The rules are divided into four groups: E, F, C and D. The further along the alphabet, the more the seller arranges.

Group E: the buyer arranges almost everything

• EXW (Ex Works) means that the seller makes the goods available at its own premises. The buyer arranges and pays for everything else: loading, transport and export clearance. Risk transfers as soon as the goods are made available.

Group F: the buyer arranges the main carriage

• FCA (Free Carrier) means that the seller hands the goods over to the carrier chosen by the buyer, at an agreed place. The seller handles export clearance. Risk transfers on handover. FCA can be used for any mode of transport and is widely used for road transport within Europe.
• FAS (Free Alongside Ship) means that the seller delivers the goods alongside the ship at the port of shipment. From that moment on, the risk lies with the buyer.
• FOB (Free On Board) means that the seller delivers the goods on board the ship at the port of shipment. Risk transfers once the goods are on board. For container transport, FCA is usually the better choice.

Group C: the seller pays for the main carriage, the buyer bears the risk

Under the C rules, the seller pays for transport to the destination, but the risk passes to the buyer at an earlier point. Costs and risk therefore do not transfer at the same moment, which often leads to misunderstandings in practice.

• CPT (Carriage Paid To) means that the seller arranges and pays for transport to the agreed destination. Risk transfers as soon as the goods have been handed over to the first carrier.
• CIP (Carriage and Insurance Paid To) works the same as CPT, but the seller also takes out insurance for the buyer. Since 2020, this must be extensive cover (ICC clause A).
• CFR (Cost and Freight) means that the seller pays for sea freight to the port of destination. Risk already transfers once the goods are on board at the port of shipment.
• CIF (Cost, Insurance and Freight) works the same as CFR, but the seller also takes out insurance. Minimum cover (ICC clause C) is sufficient here, unless the parties agree otherwise.

Group D: the seller delivers at the destination

• DAP (Delivered At Place) means that the seller delivers the goods at the agreed place of destination, ready for unloading. The buyer unloads and handles import clearance.
• DPU (Delivered at Place Unloaded) means that the seller also unloads the goods at the destination. It is the only Incoterm under which the seller is responsible for unloading. In 2020, DPU replaced the former term DAT.
• DDP (Delivered Duty Paid) means that the seller arranges and pays for everything up to the destination, including import clearance and import duties. For the seller, this is the most extensive obligation.

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Frequently asked questions about Incoterms®

Which Incoterms are there?

There are 11 official Incoterms® 2020. The most commonly used include EXW, FCA, DAP, DDP, FOB and CIF. Each term divides tasks and responsibilities between buyer and seller in a different way.

What does Incoterms mean?

The term Incoterms® stands for International Commercial Terms. They make clear who bears the costs, who arranges the transport and where the risk transfers.

How often are Incoterms® revised?

The International Chamber of Commerce (ICC) revises the Incoterms® roughly once every ten years. The current version, Incoterms® 2020, remains in force until a new version is published. This is expected around 2030.

Which Incoterms apply in 2026?

In 2026, the Incoterms® 2020 still apply. No new version has been published yet. Always state in your contract which version you are using, for example: FCA Oldenzaal, Incoterms® 2020.

What is FCA in Incoterms?

FCA stands for Free Carrier. The seller delivers the goods to an agreed carrier or location. From that point on, the buyer takes over responsibility and costs.

Which Incoterm is best for road transport within Europe?

For road transport within Europe, FCA, DAP and DDP are the most commonly used. FOB and CIF are intended for sea and inland waterway transport. Not sure? Your dedicated contact person at Eurosped is happy to help.

Does Eurosped advise on the right Incoterm?

Yes. As your transport partner, we help you determine which Incoterm suits your shipment, documentation and division of risk. Feel free to get in touch.