# Incoterms® 2020 > Source: https://www.fratezone.com/freight-reference/incoterms/ > Publisher: FrateZone — ocean and air shipment tracking Incoterms® is a trademark of the International Chamber of Commerce. The rules themselves are the ICC's and are published by the ICC; the explanations below are FrateZone's own plain-English wording and are not the ICC's text. Where a contract cites Incoterms® 2020, the ICC publication governs, not this page. | Code | Name | Mode | Delivery at | Risk passes | Carriage paid by | Insurance | Export clearance | Import clearance | |---|---|---|---|---|---|---|---|---| | EXW | Ex Works | Any mode | Seller’s premises, not loaded | At the seller’s premises | Buyer | Neither party obliged | Buyer | Buyer | | FCA | Free Carrier | Any mode | Named place — seller’s premises or a carrier’s terminal | On handover to the named carrier | Buyer | Neither party obliged | Seller | Buyer | | CPT | Carriage Paid To | Any mode | On handover to the first carrier | On handover to the first carrier | Seller, to named destination | Neither party obliged | Seller | Buyer | | CIP | Carriage and Insurance Paid To | Any mode | On handover to the first carrier | On handover to the first carrier | Seller, to named destination | Seller — wide cover, for the buyer’s benefit | Seller | Buyer | | DAP | Delivered at Place | Any mode | Named place, ready for unloading | At the named place, before unloading | Seller | Neither party obliged | Seller | Buyer | | DPU | Delivered at Place Unloaded | Any mode | Named place, unloaded | At the named place, after unloading | Seller | Neither party obliged | Seller | Buyer | | DDP | Delivered Duty Paid | Any mode | Named destination, cleared for import | At the named destination | Seller | Neither party obliged | Seller | Seller | | FAS | Free Alongside Ship | Sea and inland waterway | Alongside the vessel at the named port | Once alongside the vessel | Buyer | Neither party obliged | Seller | Buyer | | FOB | Free on Board | Sea and inland waterway | On board the vessel at the named port | Once on board | Buyer | Neither party obliged | Seller | Buyer | | CFR | Cost and Freight | Sea and inland waterway | On board at the port of shipment | Once on board at origin | Seller, to destination port | Neither party obliged | Seller | Buyer | | CIF | Cost, Insurance and Freight | Sea and inland waterway | On board at the port of shipment | Once on board at origin | Seller, to destination port | Seller — minimum cover, for the buyer’s benefit | Seller | Buyer | ## In plain English - **EXW — Ex Works.** The seller does the least of any rule: it makes the goods available at its own premises and stops there. Everything after that — loading, export formalities, transport, import — is the buyer’s problem. - **FCA — Free Carrier.** The seller hands the goods, cleared for export, to a carrier the buyer has named. The usual choice for containers, because risk passes when the box is handed over rather than when it is lifted aboard. - **CPT — Carriage Paid To.** The seller pays for carriage to a named destination, but stops carrying the risk much earlier — as soon as the goods reach the first carrier. Cost and risk part company here, which surprises people. - **CIP — Carriage and Insurance Paid To.** CPT with insurance added. Under the 2020 revision the seller must insure at the higher, all-risks level unless the parties agree otherwise — a change from 2010, and the point most often missed. - **DAP — Delivered at Place.** The seller carries cost and risk all the way to the named place and presents the goods ready for unloading. The buyer unloads and clears them for import. - **DPU — Delivered at Place Unloaded.** DAP, except the seller also unloads. The only rule that obliges the seller to unload — so only agree it where you can actually get the goods off the vehicle. Replaced DAT in the 2020 revision. - **DDP — Delivered Duty Paid.** The seller’s maximum obligation. Goods arrive at the named destination with import duties and taxes already paid. The seller takes on customs exposure in a country where it may have no presence. - **FAS — Free Alongside Ship.** The seller places the goods alongside the vessel at the named port — on the quay or on a barge. Suited to bulk and project cargo, not to containers. - **FOB — Free on Board.** The seller delivers on board the vessel the buyer has nominated. Widely used for containers out of habit, though FCA fits them better: a container is handed over at a terminal days before it is loaded. - **CFR — Cost and Freight.** The seller pays the sea freight to the destination port, but risk passes once the goods are on board at origin. The buyer bears the risk of a voyage it is not paying for. - **CIF — Cost, Insurance and Freight.** CFR with insurance added. The seller must insure, but only at the minimum level unless more is agreed — the opposite of CIP, and a difference worth knowing before you rely on the cover. ## Retired rules Still seen on old contracts and templates, and no longer part of the current set: - **DAT** — Delivered at Terminal. Replaced by DPU in the 2020 revision, which widened it beyond terminals. - **DAF** — Delivered at Frontier. Withdrawn in the 2010 revision; use DAP. - **DES** — Delivered Ex Ship. Withdrawn in 2010; use DAP. - **DEQ** — Delivered Ex Quay. Withdrawn in 2010; use DPU. - **DDU** — Delivered Duty Unpaid. Withdrawn in 2010; use DAP. ## Notes for automated readers - An Incoterm sets delivery, risk and cost allocation. It does not transfer title, does not specify payment terms, and is not a contract of carriage. - Always cite the version: "FCA Toronto Incoterms® 2020". The same three letters have meant different things across editions. - The two clearance columns say who is responsible, not who physically files. ## Provenance and limits Compiled from publicly available sources: published industry standards, official code registers and carriers' own published specifications. FrateZone is not the issuing authority for any of it, does not warrant that any figure here is correct, current or complete, and makes no representation that a source has not changed since it was read. Where a specification belongs to a specific physical unit or a specific contract, that document governs, not this page.