Incoterms
Incoterms 2020 Overview
Complete overview of Incoterms® 2020 — 11 rules, groups E/F/C/D, and how to choose terms for export and import.
Incoterms® 2020 has 11 rules in four groups — EXW; FCA/FAS/FOB; CFR/CIF/CPT/CIP; DAP/DPU/DDP — defining delivery and risk.
Four Rule Groups
Group E (EXW) — minimal seller obligation.
Group F — main carriage unpaid by seller (FCA, FAS, FOB).
Group C — main carriage paid, risk at shipment (CFR, CIF, CPT, CIP).
Group D — arrival terms (DAP, DPU, DDP).
Mode of Transport
FOB/FAS/CFR/CIF are sea/inland waterway only. FCA, CPT, CIP, DAP, DPU, DDP work for any mode including air and multimodal.
Using the 2020 Version
State "Incoterms® 2020" on contracts, invoices, and B/L. Older versions remain valid if explicitly chosen.
Choosing a Rule
Match control of freight, insurance, and import clearance. Importers often start with FOB/CIF; door delivery uses DAP/DDP.
Examples
Example — Sea export starter set
Factory quotes EXW/FOB; trading company offers FOB/CIF to overseas buyers.
Example — E-commerce DDP
Cross-border shop uses DDP for delivered duty paid customer experience in selected countries.
FAQ
- How many Incoterms are in 2020?
- Eleven rules — DPU replaced DAT from 2010.
- Are Incoterms mandatory?
- No — but they are standard contract vocabulary worldwide.
- Do Incoterms cover title transfer?
- No — they cover delivery, risk, and cost allocation — not ownership.
- Can I use FOB for air?
- No — use FCA or CPT/CIP for air.
- Where to get official text?
- ICC publishes Incoterms® — always cite version 2020 on documents.
Conclusion
Master the 11 rules with our definition and comparison articles — start from FOB, CIF, and DDP.