INCOTERMS® 2020 GUIDE

Incoterms® 2020 Guide for International Shipping

Learn the meaning of EXW, FOB, CIF, DDP, DAP and other Incoterms® used in international trade. Understand buyer and seller responsibilities, risk transfer and choose the right shipping term for your imports and exports.

Talk to Freight Expert
FOB
Free On Board
Common ocean term
CIF
Cost, Insurance & Freight
Seller arranges freight
DDP
Delivered Duty Paid
Maximum seller responsibility
Incoterms 2020 guide showing buyer seller responsibilities and international shipping terms
BUYER & SELLER RESPONSIBILITIES

What are Incoterms?

Incoterms® are internationally accepted trade rules that define the responsibilities of buyers and sellers in global shipments.

Why They Matter

They help avoid confusion about freight cost, customs, insurance, delivery point and risk transfer.

What They Cover

They explain who arranges transport, who pays charges, who handles clearance and where risk transfers.

Simple meaning: Incoterms tell both parties who is responsible for what during an international shipment.

Buyer and seller responsibilities explained through Incoterms in international shipping
Tip: Tap the chart to open it in full size.
CHOOSING THE RIGHT TRADE TERM

Which Incoterm Should I Choose?

Your best Incoterm depends on who controls freight, customs, insurance and delivery responsibility in the shipment.

For Exporters

Choose terms that clearly define where your responsibility ends and what the buyer must arrange.

FOB CIF FCA

For Importers

Choose terms based on how much control you want over freight, customs and final delivery.

EXW DAP DDP

For Ocean Freight

Use sea-specific terms when cargo moves by vessel and port responsibility needs to be clear.

FOB CFR CIF

For Air Freight

Use multimodal terms that work across air cargo, road movement and door delivery.

FCA CPT CIP
READY TO SHIP INTERNATIONALLY?

Need Help Choosing the Right Incoterm?

Whether you're importing, exporting or booking freight for the first time, MultiTransitEdge can help you choose the right Incoterm and manage your shipment from origin to destination.

Talk to a Freight Expert

We'll help you select the right shipping term and freight solution.

Contact Shipping Team
INCOTERMS® FAQS

Frequently Asked Questions

Quick answers to the most common questions about Incoterms®, buyer and seller responsibilities and international trade.

Incoterms® are internationally recognized trade rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers during international shipments.

FOB, CIF, FCA, DAP and DDP are among the most widely used Incoterms depending on the shipment type and agreement between buyer and seller.

No. Incoterms only define responsibilities, costs and transfer of risk. They do not determine ownership or payment terms.

FAS, FOB, CFR and CIF are designed specifically for sea and inland waterway transport.

EXW, FCA, CPT, CIP, DAP and DDP can be used for air freight and multimodal transportation.

It depends on the selected Incoterm. For example, under DDP the seller pays import duties, while under FOB or CIF the buyer usually handles import customs clearance.

Yes. Our freight specialists can recommend the most suitable Incoterm based on your shipment, destination, transport mode and commercial agreement.