Where should the chosen Incoterm be stated in a contract?

The rule should be stated clearly on the sales contract or invoice together with the named place and Incoterms version (e.g. "FOB Izmir Port, Incoterms® 2020").

Is the information on this page legal advice?

No. This content is for general information only; for binding interpretation, refer to the ICC's official Incoterms® 2020 rulebook and your own legal/customs advisor.

Incoterms Center

Incoterms® 2020, published by the International Chamber of Commerce (ICC), is a set of 11 standard delivery terms that define how cost, risk, and responsibility are shared between buyer and seller. Compare all the rules below, find the one that fits, and work out the cost split.

Incoterm Selector Wizard

Answer a few questions and we'll suggest the right rule for you.

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Cost & Responsibility Calculator

See who pays what based on the Incoterm you choose.

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Responsibility Matrix

Browse the full cost breakdown for every rule on one page.

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Full Incoterms Comparison

Each column is a cost category; each cell shows who pays for it.

Incoterm	Packaging	Export Clearance	Origin Inland Transport	Main Carriage (Freight)	Insurance	Import Clearance	Destination Inland Transport	Duties & Taxes
EXWEx Works	Seller	Buyer	Buyer	Buyer	—	Buyer	Buyer	Buyer
FCAFree Carrier	Seller	Seller	Seller	Buyer	—	Buyer	Buyer	Buyer
CPTCarriage Paid To	Seller	Seller	Seller	Seller	—	Buyer	Buyer	Buyer
CIPCarriage and Insurance Paid To	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer
DAPDelivered At Place	Seller	Seller	Seller	Seller	—	Buyer	Seller	Buyer
DPUDelivered at Place Unloaded	Seller	Seller	Seller	Seller	—	Buyer	Seller	Buyer
DDPDelivered Duty Paid	Seller	Seller	Seller	Seller	—	Seller	Seller	Seller
FASFree Alongside Ship	Seller	Seller	Seller	Buyer	—	Buyer	Buyer	Buyer
FOBFree On Board	Seller	Seller	Seller	Buyer	—	Buyer	Buyer	Buyer
CFRCost and Freight	Seller	Seller	Seller	Seller	—	Buyer	Buyer	Buyer
CIFCost, Insurance and Freight	Seller	Seller	Seller	Seller	Seller	Buyer	Buyer	Buyer

Commonly Compared Pairs

FOB vs CIF EXW vs FCA DDP vs DAP CFR vs CIF CPT vs CIP

Sea Freight Example

A Turkish importer buys a container from China under FOB terms: the Chinese seller is responsible until the goods are loaded on board at Shanghai, after which freight, insurance, and customs clearance fall to the Turkish buyer.

Air Freight Example

A business buys a sample shipment from Germany under EXW terms: the German supplier makes the goods available at their own warehouse, and the buyer arranges their own air freight forwarder and handles import formalities.

Road Freight Example

A shipment arrives by truck from Bulgaria under CPT terms: the Bulgarian seller pays freight to the named point in Turkey, but risk passes to the buyer as soon as the goods are handed to the first carrier (the truck).

Frequently Asked Questions

Incoterms® 2020 is a set of 11 rules published by the International Chamber of Commerce (ICC) that standardize how delivery, risk, and cost are shared between buyer and seller in international sales contracts.