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Export guide

Incoterms 2020,simply explained.

The eleven Incoterms 2020 rules decide who pays for transport, where risk passes and who handles customs. Pick a rule to see the split between seller and buyer.

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11Incoterms rules
7Any transport mode
4Sea & inland waterway
2020Current edition

FCA — Free Carrier

Any mode

Seller pays   Buyer pays   Risk passes to buyer

Delivery point
To the carrier nominated by the buyer at a named place
Risk passes
When handed to the buyer’s carrier
Main carriage paid by
Buyer
Insurance
Not required (buyer’s choice)
Export clearance
Seller
Import clearance & duties
Buyer

Common for containers and air freight; the seller clears the goods for export.

RuleModeFreight paid byInsuranceExport clearanceImport clearance
EXWAny modeBuyer—BuyerBuyer
FCAAny modeBuyer—SellerBuyer
CPTAny modeSeller—SellerBuyer
CIPAny modeSellerSellerSellerBuyer
DAPAny modeSeller—SellerBuyer
DPUAny modeSeller—SellerBuyer
DDPAny modeSeller—SellerSeller
FASSea & inland waterwayBuyer—SellerBuyer
FOBSea & inland waterwayBuyer—SellerBuyer
CFRSea & inland waterwaySeller—SellerBuyer
CIFSea & inland waterwaySellerSellerSellerBuyer

Summary of the ICC Incoterms® 2020 rules for orientation only. Always state the rule, the named place and the edition in your contract, e.g. “FCA Mundra Port, India, Incoterms® 2020”.

FAQ

Incoterms questions.

See also our export document checklist.

It depends on how much of the logistics you want to manage. FCA or FOB suit buyers with their own freight forwarder; CIF, CIP or DAP suit buyers who prefer the seller to arrange transport. Enzyme Bioscience agrees Incoterms per order.

Under both, risk passes to the buyer when the goods are on board the vessel in India. Under CIF the seller also pays sea freight and minimum insurance to the destination port; under FOB the buyer arranges and pays those.

The buyer. DAP means the seller delivers to the named place in the buyer’s country, but import clearance, duties and taxes remain with the buyer. Only DDP puts import duties on the seller.

Under EXW the buyer must handle export clearance in India, which a foreign buyer usually cannot do easily. Under FCA the seller clears the goods for export and hands them to the buyer’s carrier.

Let’s work together

Which terms suit your order?

Tell us your destination port or city and preferred Incoterms — we’ll quote on that basis.

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