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Incoterms® 2020 — Risk Transfer & Responsibilities

A clean, practical view of the 11 Incoterms®: where risk transfers, and who typically handles carriage, insurance, clearance and delivery.

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Risk transfer made simple Responsibilities overview Comparison table

What Incoterms® cover (and what they don’t)

Incoterms® define who does what and who pays what — and most importantly, where risk transfers from seller to buyer. They do not define transfer of ownership/title or the payment method (LC/TT etc.).

This page includes
  • 11 Incoterms® grouped by Any-mode vs Sea-only
  • A visual risk-transfer timeline
  • A clean comparison table for planning & quoting
  • Downloadable Incoterms® PDF

Windwalker guidance

If you’re unsure, share your route, cargo, mode, and who will clear customs — we’ll suggest the right Incoterm® and service (air/ocean/multimodal).

Any mode (road / air / sea / multimodal)
EXW · FCA · CPT · CIP · DAP · DPU · DDP · DAT

EXW — Ex Works

Buyer collects from seller’s premises. Risk transfers at pickup.

FCA — Free Carrier

Seller hands goods to carrier at named place. Risk transfers there.

CPT — Carriage Paid To

Seller pays main carriage; risk transfers at first carrier handover.

CIP — Carriage & Insurance Paid To

Seller pays carriage + insurance; risk transfers at first carrier.

DAP — Delivered At Place

Seller delivers at destination place, ready for unloading.

DPU — Delivered At Place Unloaded

Seller delivers and unloads at named place.

DDP — Delivered Duty Paid

Seller delivers with import clearance and duties/taxes paid.

DAT — Delivered At Terminal (Deprecated)

Incoterms 2010 term. Replaced by DPU in Incoterms 2020.

Sea & inland waterway only

Use these only for sea/inland shipments — especially when risk transfer references ship-side points.

  • FAS — Free Alongside Ship
  • FOB — Free On Board
  • CFR — Cost & Freight
  • CIF — Cost, Insurance & Freight

Comparison table

Incoterms® at a glance (clean PDF-style)

“Seller vs Buyer” responsibility view for common planning points. Always confirm in your sales contract.

Quick view Seller Buyer Varies / shared
Download table PDF
Term Mode Export clearance Main carriage cost Insurance cost Import clearance Delivery to destination
EXW Any mode Buyer Buyer Buyer Buyer Buyer
FCA Any mode Seller Buyer Buyer Buyer Buyer
CPT Any mode Seller Seller Buyer Buyer Buyer
CIP Any mode Seller Seller Seller Buyer Buyer
DAP Any mode Seller Seller Buyer Buyer Seller
DPU Any mode Seller Seller Buyer Buyer Seller (unloads)
DDP Any mode Seller Seller Buyer Seller Seller
FAS Sea only Seller Buyer Buyer Buyer Buyer
FOB Sea only Seller Buyer Buyer Buyer Buyer
CFR Sea only Seller Seller Buyer Buyer Buyer
CIF Sea only Seller Seller Seller Buyer Buyer

Important notes (avoid disputes)

  • Always mention the named place/port clearly in writing.
  • Risk transfer timing can differ from who pays (especially C-terms).
  • For destination customs control, be cautious with DDP unless you can manage taxes/import compliance.

Need help selecting the right Incoterm®?

Tell us your mode, origin/destination, pickup/delivery expectation and who will clear customs — we’ll recommend the best Incoterms® and shipment plan.

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