Incoterms 2020: Picker and Responsibility Chart
Answer a handful of questions about who books the transport, who clears customs and where the risk should sit, and this picker names the Incoterms 2020 rule that matches, with the full 11-term responsibility chart underneath, checked July 2026 against ICC and UK government guidance.
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How to use: Incoterms are the 11 standard trade terms published by the International Chamber of Commerce that fix who pays for each leg of an international shipment, who clears customs, who insures, and exactly where risk moves from seller to buyer. Answer the questions below to find the rule that matches how you want the deal to work, then sanity-check it against the full responsibility chart. Definitions follow the ICC Incoterms 2020 rules, checked July 2026.
Which Incoterms 2020 rule fits your shipment?
- Main carriage paid by
- Risk passes
- Export clearance
- Import clearance and duty
- Insurance obligation
- Unloading at destination
Quote the result as the three-letter code plus the named place plus the version, for example "FCA Felixstowe Port, Incoterms 2020". The named place matters as much as the code: it is where costs or risk change hands.
All 11 Incoterms 2020 rules at a glance
| Rule | Loading at origin | Export clearance | Main carriage | Insurance | Import clearance | Unloading | Risk passes to buyer |
|---|---|---|---|---|---|---|---|
| EXW Ex Works | B | B | B | None | B | B | Goods at buyer's disposal, seller's premises |
| FCA Free Carrier | S | S | B | None | B | B | Handover to buyer's carrier at named place |
| CPT Carriage Paid To | S | S | S | None | B | B | Handover to (first) carrier at origin |
| CIP Carriage and Insurance Paid To | S | S | S | S, Clauses (A) | B | B | Handover to (first) carrier at origin |
| DAP Delivered at Place | S | S | S | None | B | B | Named destination, ready for unloading |
| DPU Delivered at Place Unloaded | S | S | S | None | B | S | Named destination, once unloaded |
| DDP Delivered Duty Paid | S | S | S | None | S | B | Named destination, ready for unloading |
| FAS Free Alongside Ship | S to quay | S | B | None | B | B | Alongside vessel at load port |
| FOB Free on Board | S | S | B | None | B | B | On board vessel at load port |
| CFR Cost and Freight | S | S | S | None | B | B | On board vessel at load port |
| CIF Cost, Insurance and Freight | S | S | S | S, Clauses (C) | B | B | On board vessel at load port |
S = seller's cost, B = buyer's cost. EXW to DDP work for any transport mode; FAS, FOB, CFR and CIF are for sea and inland waterway only. "None" means neither party is obliged to insure, though either may choose to. Under CIP the seller must insure to Institute Cargo Clauses (A), the all-risks level; under CIF only to the minimum Clauses (C); both for at least 110 percent of the contract price. Summarised July 2026 from the ICC Incoterms 2020 rules and HMRC's customs valuation guidance. Incoterms is a registered trademark of the International Chamber of Commerce; this independent guide is not affiliated with the ICC.
Incoterms 2020 explained: what the rules actually decide
Incoterms (International Commercial Terms) are published by the International Chamber of Commerce and were last revised in 2020, which remains the current edition in July 2026. Each three-letter rule is a pre-agreed package answering four questions that otherwise get argued about after something goes wrong: who pays for each stage of the journey, who handles export and import clearance, who insures, and the precise point where the risk of loss or damage stops being the seller's problem and becomes the buyer's. HMRC lists the same 11 rules in its customs valuation guidance, because the term on the invoice shapes which freight costs sit inside the declared value.
Two things Incoterms do not decide, and people regularly assume they do: when ownership of the goods transfers, and when the invoice gets paid. Both belong in the sales contract itself. A rule is only properly quoted with a named place and the edition, so "DAP CTS depot, Leeds, Incoterms 2020" rather than a bare "DAP", because cost and risk change hands at that named point.
What changed in Incoterms 2020
If your paperwork still says Incoterms 2010, the terms remain usable when both sides agree, but four changes in the 2020 edition matter in practice. DAT (Delivered at Terminal) was renamed DPU and the delivery point widened from a terminal to any agreed place. The insurance floor under CIP rose to Institute Cargo Clauses (A), the all-risks level, while CIF kept the minimum Clauses (C) that suits commodity trades. FCA gained an option for the buyer to instruct its carrier to issue the seller an on-board bill of lading, which fixed the letter-of-credit problem that pushed exporters to misuse FOB for containers. And the rules now allow for the seller or buyer using its own vehicles under FCA and the D-terms rather than assuming a third-party carrier, checked July 2026 against the ICC's summary of the edition.
The three terms that catch UK firms
EXW looks attractive to sellers because it hands everything to the buyer, but since the UK left the EU it has become a trap: an overseas buyer often cannot act as the UK exporter for customs purposes, and the seller may struggle to obtain acceptable export evidence to support zero-rating the sale for VAT. FCA gives away little more and keeps the export declaration, and the proof, in the seller's hands.
FOB and CIF belong to bulk and breakbulk sea freight, where goods are actually delivered onto a vessel. Containers are handed over at a terminal days earlier, which leaves a gap where the box sits at the port at the seller's risk under a rule that pretends otherwise. FCA, CPT or CIP put the risk transfer where the handover really happens.
DDP makes the seller the importer in the buyer's country, which usually means a VAT registration or fiscal representation there, a customs agent willing to act, and import VAT the seller may not be able to recover. HMRC's valuation guidance also notes a DDP invoice value is duty-inclusive, so the declared value needs unpicking. DAP delivers the same door-to-door service while leaving import formalities with the party equipped for them.
Incoterms and your transport quote
The rule you trade on decides which legs of the journey you are buying, so it belongs in the brief before anyone prices the work. Sell FCA and you need a domestic movement to the carrier's depot or port. Buy EXW from a European supplier and you are booking the collection, the crossing and the UK leg, plus both customs declarations. Trade DAP or DPU as a seller and the whole chain is yours to arrange, including tolls, fuel and waiting time at the far end.
- Buying the main leg yourself? Score the bids on more than headline price with the haulage quote comparison tool.
- Air or groupage sea legs are billed on chargeable weight, so check the volumetric weight calculator before you commit to a CPT price.
- Sizing a full or part load for the road legs? The pallet calculator and lorry sizes guide match the freight to the vehicle.
Frequently asked questions
What are Incoterms, explained in simple terms?
They are 11 standard trade terms, published by the International Chamber of Commerce, that spell out who pays for transport, who clears customs, who insures and where risk passes between seller and buyer on an international shipment. Quoting one three-letter code imports the whole package into your contract.
What is the difference between DAP and DDP?
Under both, the seller carries cost and risk to the named destination. Under DAP the buyer then clears import customs and pays duty and import VAT. Under DDP the seller does that too, which is why DDP is the maximum-obligation term and needs the seller to be able to make import declarations in the buyer's country.
Which Incoterms should I use for containers?
FCA, CPT or CIP rather than FOB, CFR or CIF. A container is handed to the carrier at a terminal, not delivered onto the ship, and the 2020 rules place the sea terms firmly with bulk and breakbulk cargo. The 2020 FCA bill-of-lading option removed the main reason exporters clung to FOB.
Is Incoterms 2020 still current, and can I still use Incoterms 2010?
Incoterms 2020 is the current edition as at July 2026; the ICC has published no later revision. Older editions stay valid if the contract names them, but say which edition you mean, because DAT only exists in 2010 and the CIP insurance level differs between the two.
Who pays for insurance under Incoterms?
Only two rules oblige anyone to insure: CIP, where the seller must buy all-risks Institute Cargo Clauses (A) cover, and CIF, where the seller only owes the minimum Clauses (C) level, both for at least 110 percent of the contract price. Under every other rule insurance is optional, so whoever carries the transit risk should arrange their own cover.
Do Incoterms apply within the UK?
They are written for international sales but nothing stops domestic use, and firms sometimes quote FCA or DAP on UK-only moves for clarity. For a straightforward domestic haulage job, a well-written contract and delivery terms usually do the work instead.
Know your term. Need the transport to match?
Once the Incoterm fixes which legs you are responsible for, CTS finds the operators to run them. Brief us once with the lanes, volumes and the terms you trade on, and we place your requirement with vetted UK transport providers who quote it properly. Free for shippers, no obligation.
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