Incoterms 2020 explorer
Pick a rule to see who handles each cost, where risk passes from seller to buyer, and when to use it.
A simplified summary of the ICC Incoterms 2020 rules. Contracts can allocate specific costs differently, so put the rule, the named place and any exceptions in writing.
Why Incoterms matter
Incoterms decide who books and pays for transport, insurance and customs, and the moment risk moves from seller to buyer. They do not set the price or payment terms. Always write the rule with a named place, for example FCA Ludhiana Incoterms 2020.
Read Incoterms 2020 explained for examples and common mistakes.
Questions
Which Incoterm is best for importers?
Many importers prefer FCA or FOB, which let them control freight and costs. DAP and DDP are simpler but give the seller control of shipping.
Can FOB be used for air freight?
No. FOB, FAS, CFR and CIF are for sea and inland waterway transport. For air, use FCA, CPT, CIP or a D-rule.
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