# Incoterms 2020 Buyer and Seller Responsibility Reference > Source: https://netray.co/tools/incoterms-2020-buyer-seller-responsibility-reference > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A searchable table of all 11 Incoterms 2020 rules showing where risk transfers and who handles carriage, customs and insurance. ## Category supply-chain ## Audience - Buyer - Purchasing manager - Supplier quality - Logistics coordinator ## Tool **Kind:** worksheet **Mode:** reference **Columns:** #### Rule **Key:** rule **Type:** text #### Full name **Key:** name **Type:** text #### Transport mode **Key:** mode **Type:** text #### Risk passes to buyer **Key:** risk **Type:** text #### Export clearance **Key:** export **Type:** text #### Main carriage paid by **Key:** carriage **Type:** text #### Import clearance **Key:** import **Type:** text #### Insurance obligation **Key:** insurance **Type:** text #### Buyer note **Key:** buyer_note **Type:** text **Rows:** #### Ex Works **Rule:** EXW **Mode:** Any mode **Risk:** When goods are placed at the buyer's disposal at the seller's premises or named place, not loaded **Export:** Buyer **Carriage:** Buyer **Import:** Buyer **Insurance:** None **Buyer note:** Maximum buyer burden. Buyer loads and clears export, which foreign buyers often cannot do. #### Free Carrier **Rule:** FCA **Mode:** Any mode **Risk:** When goods are handed to the buyer's carrier at the named place **Export:** Seller **Carriage:** Buyer **Import:** Buyer **Insurance:** None **Buyer note:** Preferred over EXW for containers and air freight. Named place decides who loads. #### Carriage Paid To **Rule:** CPT **Mode:** Any mode **Risk:** When goods are handed to the first carrier, not at destination **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** None **Buyer note:** Seller pays freight but risk moves early. Arrange your own cargo insurance. #### Carriage and Insurance Paid To **Rule:** CIP **Mode:** Any mode **Risk:** When goods are handed to the first carrier **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** Seller, Institute Cargo Clauses (A) minimum **Buyer note:** Insurance level is highest of the CIF and CIP rules in Incoterms 2020. #### Delivered at Place **Rule:** DAP **Mode:** Any mode **Risk:** At the named destination, ready for unloading on the arriving vehicle **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** None **Buyer note:** Buyer unloads and pays import duty and VAT. Clear the named place on the PO. #### Delivered at Place Unloaded **Rule:** DPU **Mode:** Any mode **Risk:** At the named destination after unloading **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** None **Buyer note:** Only rule where the seller unloads. Replaced DAT from Incoterms 2010. #### Delivered Duty Paid **Rule:** DDP **Mode:** Any mode **Risk:** At the named destination, ready for unloading, import cleared **Export:** Seller **Carriage:** Seller **Import:** Seller **Insurance:** None **Buyer note:** Maximum seller burden. Check who is importer of record and who bears import VAT. #### Free Alongside Ship **Rule:** FAS **Mode:** Sea and inland waterway **Risk:** When goods are placed alongside the vessel at the named port of shipment **Export:** Seller **Carriage:** Buyer **Import:** Buyer **Insurance:** None **Buyer note:** Suited to bulk and break-bulk cargo, not containers. #### Free On Board **Rule:** FOB **Mode:** Sea and inland waterway **Risk:** When goods are on board the vessel at the named port of shipment **Export:** Seller **Carriage:** Buyer **Import:** Buyer **Insurance:** None **Buyer note:** Do not use for containers handed over at a terminal. Use FCA instead. #### Cost and Freight **Rule:** CFR **Mode:** Sea and inland waterway **Risk:** When goods are on board the vessel at the port of shipment **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** None **Buyer note:** Seller pays sea freight but you carry transit risk. Insure the cargo yourself. #### Cost, Insurance and Freight **Rule:** CIF **Mode:** Sea and inland waterway **Risk:** When goods are on board the vessel at the port of shipment **Export:** Seller **Carriage:** Seller **Import:** Buyer **Insurance:** Seller, Institute Cargo Clauses (C) minimum **Buyer note:** Minimum cover is limited. Ask for higher cover if the goods are high value. #### Delivered at Terminal (withdrawn) **Rule:** DAT **Mode:** Any mode **Risk:** Not applicable, replaced by DPU in Incoterms 2020 **Export:** Not applicable **Carriage:** Not applicable **Import:** Not applicable **Insurance:** Not applicable **Buyer note:** Still appears on old POs. Treat as DPU only if both parties agree in writing. #### Delivered Duty Unpaid (withdrawn) **Rule:** DDU **Mode:** Any mode **Risk:** Not applicable, removed in Incoterms 2010 **Export:** Not applicable **Carriage:** Not applicable **Import:** Not applicable **Insurance:** Not applicable **Buyer note:** Ambiguous term. Replace with DAP on new POs. #### Delivered Ex Ship (withdrawn) **Rule:** DES **Mode:** Sea **Risk:** Not applicable, removed in Incoterms 2010 **Export:** Not applicable **Carriage:** Not applicable **Import:** Not applicable **Insurance:** Not applicable **Buyer note:** Replace with DAP for sea deliveries. #### Delivered Ex Quay (withdrawn) **Rule:** DEQ **Mode:** Sea **Risk:** Not applicable, removed in Incoterms 2010 **Export:** Not applicable **Carriage:** Not applicable **Import:** Not applicable **Insurance:** Not applicable **Buyer note:** Replace with DPU or DAP depending on who unloads. #### Delivered at Frontier (withdrawn) **Rule:** DAF **Mode:** Land **Risk:** Not applicable, removed in Incoterms 2010 **Export:** Not applicable **Carriage:** Not applicable **Import:** Not applicable **Insurance:** Not applicable **Buyer note:** Replace with DAP and name the exact place. **Notes:** General guidance only. Incoterms govern delivery, risk and costs between buyer and seller, not title transfer, payment terms or governing law. Always name the place or port after the rule, for example FCA Shenzhen Factory Gate, and state the Incoterms version. ## Content **Intro:** Incoterms 2020 define where risk passes from seller to buyer and who pays for carriage, export and import clearance, and insurance. Use this table to check what an Incoterm on a quote or PO really commits you to. **Sections:** #### How to use this reference **Body:** Type a rule such as FCA or a phrase such as insurance into the search box to filter the table. Compare the risk column first, because that is the point after which loss or damage is your problem even if the seller pays the freight. Then check who clears export and import. Export the filtered view to Excel to attach to a sourcing review or supplier agreement. Always read the rule together with the named place, because the place decides who loads, who unloads and where the handover happens. **Bullets:** - Search by rule, mode or responsibility - Read the risk column before the freight column - Check the named place on the PO against the rule - Export the result for the sourcing file #### What the eleven rules group into **Body:** Incoterms 2020 has seven rules for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway only (FAS, FOB, CFR, CIF). They also split into rules where the buyer arranges main carriage (EXW, FCA, FAS, FOB) and rules where the seller does (the rest). Only EXW leaves export clearance to the buyer, and only DDP puts import clearance on the seller. Insurance is mandatory for the seller only under CIF and CIP. #### Worked example for a purchasing decision **Body:** A buyer in Texas sources castings from a foundry in India. Under FCA Mumbai Port Terminal the foundry clears export and hands over at the terminal, and the buyer books the ocean freight, insures the cargo and clears import. Under DAP Houston the foundry owns the freight and the transit risk until the truck arrives at the buyer's dock, but the buyer still clears import and pays duty. Compare the landed cost and the claim process under each rule, not only the unit price. #### Common mistakes **Body:** Using FOB for containers, using CIF when you need full insurance cover, leaving off the named place, quoting a rule without the Incoterms version, and assuming DDP removes all import risk when the buyer is still importer of record. Another frequent error is assuming the Incoterm settles who owns the goods or when payment is due. It does not. Those points belong in the contract and payment terms. **Bullets:** - FOB and CIF are for non-container sea cargo - Name the place and the Incoterms year - Incoterms do not transfer title - Check importer of record under DDP **Cta:** If your ERP stores Incoterms on the PO but nobody checks them against landed cost or freight accruals, we can build a read-only check that flags mismatches from your live purchasing data. **Faq:** #### What is the difference between FCA and FOB? **Answer:** FOB applies only to sea and inland waterway transport and passes risk once goods are on board the vessel. FCA works for any mode and passes risk when goods are handed to the buyer's carrier at the named place. For containerised cargo handed over at a terminal, FCA is the correct choice. #### Which Incoterm is best for a buyer? **Answer:** There is no single best rule. Buyers who want control of freight and cost often choose FCA, while buyers who want the seller to manage delivery choose DAP. The right choice depends on your freight capability, supplier reliability and who can better manage customs. #### Does DDP mean the seller pays all taxes? **Answer:** DDP puts import clearance, duty and the obligation to deliver cleared goods on the seller. Import VAT treatment varies by country and by who is importer of record. Confirm the arrangement with your customs broker before accepting DDP. #### Do I need to state the Incoterms version? **Answer:** Yes. The parties can choose any edition, and rules such as DAT changed names between editions. Write the rule, the named place and the year, for example FCA Shenzhen Factory Gate Incoterms 2020, on the PO and the supply agreement. ## Search terms incoterms 2020 table, incoterms responsibility chart, incoterms 2020 pdf, incoterms risk transfer, FCA vs FOB vs DAP, incoterms for purchase orders, incoterms excel, who pays freight incoterms --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json