Reference sheet
Incoterms® 2020 chart
Who pays, who carries the risk, and the exact moment it changes hands. All 11 rules on one page.
Is there an Incoterms 2026 edition?
No. The International Chamber of Commerce has not published one. Incoterms® 2020 took effect on 1 January 2020 and is still the current edition — the ICC revises the rules roughly once a decade, so the next one is expected around 2030.
A contract signed today should name the edition explicitly, like this: FCA Shenzhen Port, Incoterms® 2020. A quotation that says only “FOB”, or one that cites a rulebook that does not exist, leaves the delivery term open to argument.
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The 11 rules
Seven rules work for any mode of transport. Four are written for sea and inland waterway carriage, and are the wrong choice for containers handed over at a terminal.
| Rule | Export clearance | Main carriage cost | Insurance | Import clearance & duty | Risk transfers from seller to buyer |
|---|---|---|---|---|---|
| EXWEx Works | Buyer | Buyer | Not required | Buyer | At the seller’s premises, once the goods are placed at the buyer’s disposal — not loaded. |
| FCAFree Carrier | Seller | Buyer | Not required | Buyer | When the goods are handed to the buyer’s carrier at the named place. |
| CPTCarriage Paid To | Seller | Seller | Not required | Buyer | When the goods are handed to the first carrier — not on arrival. |
| CIPCarriage and Insurance Paid To | Seller | Seller | Seller — Clauses A (all risks) | Buyer | When the goods are handed to the first carrier — not on arrival. |
| DAPDelivered at Place | Seller | Seller | Not required | Buyer | At the named destination, ready for unloading on the arriving vehicle. |
| DPUDelivered at Place Unloaded | Seller | Seller | Not required | Buyer | At the named destination, once unloaded — the only rule that puts unloading on the seller. |
| DDPDelivered Duty Paid | Seller | Seller | Not required | Seller | At the named destination, ready for unloading — the seller has already cleared import and paid duty. |
| Sea and inland waterway transport only | |||||
| FASFree Alongside Ship | Seller | Buyer | Not required | Buyer | When the goods are placed alongside the vessel at the named port of shipment. |
| FOBFree On Board | Seller | Buyer | Not required | Buyer | When the goods are on board the vessel at the port of shipment. |
| CFRCost and Freight | Seller | Seller | Not required | Buyer | When the goods are on board at the port of shipment — not on arrival. |
| CIFCost, Insurance and Freight | Seller | Seller | Seller — Clauses C (minimum) | Buyer | When the goods are on board at the port of shipment — not on arrival. |
Five things the table cannot show you
- Incoterms do not transfer ownership. They allocate delivery, risk, cost and transport duties. Title, payment terms and remedies for breach live in the sales contract and in the law that governs it.
- For containers, FCA usually beats FOB. Under FOB you keep the risk until the goods are on board, but at a container terminal you lose physical control days earlier. FCA moves the transfer point to where control actually changes.
- CIP and CIF insurance are not the same cover. CIP obliges the seller to buy all-risks cover (Institute Cargo Clauses A). CIF obliges only the minimum (Clauses C). Buyers who assume CIF means “insured” are often underinsured.
- Four rules split cost from risk. Under CPT, CIP, CFR and CIF the seller pays freight all the way to the destination, but risk passes back at origin. Damage in transit is the buyer’s problem even though the seller booked the ship.
- DDP moves import clearance onto the seller. That means duty, import VAT, and in some countries a local tax registration the seller may not be able to obtain. It is the most commonly agreed and most commonly regretted term.
How to write it so it holds up
A rule on its own is incomplete. Three parts belong together: the rule, the named place, and the edition.
CIF Rotterdam, Incoterms® 2020 DAP 14 Rue de Lyon, Paris, Incoterms® 2020
Name the place as precisely as the rule allows. Under the D rules the named place is where delivery happens, so vagueness there is expensive. Under FCA, FOB and the other origin rules, the named place decides where your risk ends — a port name and a terminal name are not the same thing.
Questions
Is there an Incoterms 2026?
No. Incoterms® 2020 is the current edition and remains in force through 2026. The ICC updates the rules about every ten years, so the next edition is expected around 2030. Contracts signed in 2026 should cite Incoterms® 2020.
How many Incoterms are there?
Eleven. Seven work for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four are for sea and inland waterway carriage only (FAS, FOB, CFR, CIF).
What is the difference between FOB and FCA?
Both pass risk at origin, but at different moments. FOB passes risk when the goods are on board the vessel. FCA passes risk when the goods are handed to the carrier at the named place. For containerised cargo delivered to a terminal, FCA reflects what actually happens; FOB leaves the seller carrying risk over goods it no longer controls.
Can I still use Incoterms 2010?
Yes, if both parties agree and the contract says which edition applies. The editions are not automatically superseded — what causes disputes is naming no edition at all.
Which rule is safest for a first-time importer?
FCA or CPT at a named origin point gives you control of the main carriage without the seller’s freight margin, and keeps import clearance where your customs broker can handle it. EXW pushes export clearance onto a buyer who often cannot legally perform it; DDP pushes import obligations onto a seller who often cannot either.
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