EXW · Ex Works
The buyer handles everything, export clearance included — often impractical in international trade, where FCA usually fits better.
Freight reference
Incoterms® 2020 chart
Eleven rules decide who arranges and pays the transport, where the risk passes from seller to buyer, and who clears customs. Here they are on one page.
At a glance
- Incoterms® 2020 is the edition in force: seven rules for any mode of transport and four for sea and inland waterway.
- In every rule except EXW the seller clears the goods for export; only under DDP does the seller clear them for import.
- Under the C rules (CPT, CIP, CFR, CIF) the seller pays the main carriage, but the risk passes at origin.
- Only CIF and CIP oblige the seller to insure the cargo — minimum cover under CIF, all-risks cover under CIP.
| Rule | Mode | Risk passes | Main carriage paid by | Insurance | Export clearance | Import clearance and duties |
|---|---|---|---|---|---|---|
| EXW Ex Works | Any mode | Goods made available at the seller's premises, not loaded | Buyer | No obligation | Buyer | Buyer |
| FCA Free Carrier | Any mode | Handed to the buyer's carrier at the named place | Buyer | No obligation | Seller | Buyer |
| CPT Carriage Paid To | Any mode | Handed to the first carrier | Seller | No obligation | Seller | Buyer |
| CIP Carriage and Insurance Paid To | Any mode | Handed to the first carrier | Seller | Seller — all risks, ICC (A) | Seller | Buyer |
| DAP Delivered at Place | Any mode | At the named destination, ready for unloading | Seller | No obligation | Seller | Buyer |
| DPU Delivered at Place Unloaded | Any mode | At the named destination, unloaded | Seller | No obligation | Seller | Buyer |
| DDP Delivered Duty Paid | Any mode | At the named destination, ready for unloading | Seller | No obligation | Seller | Seller |
| FAS Free Alongside Ship | Sea and inland waterway | Alongside the vessel at the port of shipment | Buyer | No obligation | Seller | Buyer |
| FOB Free on Board | Sea and inland waterway | On board the vessel at the port of shipment | Buyer | No obligation | Seller | Buyer |
| CFR Cost and Freight | Sea and inland waterway | On board the vessel at the port of shipment | Seller | No obligation | Seller | Buyer |
| CIF Cost, Insurance and Freight | Sea and inland waterway | On board the vessel at the port of shipment | Seller | Seller — minimum, ICC (C) | Seller | Buyer |
The eleven rules
Any mode
FCA · Free Carrier
The usual choice for containers; the parties can agree that the carrier issues an on-board bill of lading to the seller.
CPT · Carriage Paid To
The seller pays the freight to the destination, but the buyer carries the risk from origin.
CIP · Carriage and Insurance Paid To
As CPT, plus insurance arranged by the seller at the all-risks level.
DAP · Delivered at Place
The buyer unloads and handles import clearance, duties and taxes.
DPU · Delivered at Place Unloaded
Replaced DAT in 2020; the only rule in which the seller unloads at destination.
DDP · Delivered Duty Paid
The seller's maximum obligation, import duties and taxes included — check that the seller can act as importer in that country.
Sea and inland waterway
FAS · Free Alongside Ship
Mainly for bulk and break-bulk cargo, not containers.
FOB · Free on Board
Common in sea trade; for containers handed to a terminal before loading, FCA matches what really happens.
CFR · Cost and Freight
The seller pays the sea freight to the destination port; the risk passes at loading.
CIF · Cost, Insurance and Freight
As CFR, plus insurance arranged by the seller at the minimum level.
How to use the rules
Write the rule with a precise named place and the edition, for example “FCA Shanghai, Yangshan terminal, Incoterms® 2020”. The place decides where the seller's duties end, so a vague place causes disputes.
Pick a rule that fits the mode: FAS, FOB, CFR and CIF are for sea and inland waterway when goods go over the ship's rail or alongside it. For containers delivered to a terminal, use FCA, CPT or CIP.
Incoterms do not decide when ownership passes, the price, payment terms or remedies for breach — those belong in the sales contract.
Incoterms® is a registered trademark of the International Chamber of Commerce. This chart is a simplified summary for orientation; the full obligations are in the ICC publication.
Quoting by Incoterm?
The Incoterm travels with every quote.
DO IT ALL SOFT records the Incoterm with the cargo, the route and the dates — and its AI reads it straight from your customer's email request.
FAQ
Frequently asked questions
What is the difference between FOB and FCA?
Under FOB the risk passes when the goods are on board the vessel; under FCA when they are handed to the buyer's carrier, at the seller's premises or a terminal. Containers are usually handed over at a terminal days before loading, so FCA matches what actually happens.
Which Incoterms are only for sea freight?
FAS, FOB, CFR and CIF, for sea and inland waterway transport. The other seven — EXW, FCA, CPT, CIP, DAP, DPU and DDP — work for any mode, including multimodal container moves.
What changed in Incoterms 2020?
DAT became DPU; CIP now requires all-risks (ICC A) insurance while CIF stays at minimum (ICC C) cover; FCA can call for an on-board bill of lading; the parties may use their own transport under FCA and the D rules; and security-related costs are allocated more clearly.
Who pays import duties under DAP?
The buyer. Under DAP the seller delivers to the named place ready for unloading; import clearance, duties and taxes are the buyer's. Only DDP puts them on the seller.
Do Incoterms decide when ownership passes?
No. Incoterms cover delivery, risk, costs and customs clearance. Transfer of ownership, payment terms and the price belong in the sales contract.
Which leg should a freight forwarder quote?
The one the Incoterm gives your customer. Under EXW or FCA the buyer's forwarder quotes from origin; under CFR or CIF the seller's forwarder quotes to the destination port, and the buyer's forwarder handles only the destination charges and delivery.
Do it. See everything.
See everything.
Focus on strategy.
Start without stopping your business. Free trial up to 90 days — no setup fee, no hidden fees.