Incoterms Chooser and 2020 Comparison Chart

Pick an Incoterm by answering three questions in order: how the goods travel, who books the main transport, and where one party's job should end. The chooser above does this for you and links to the full guide for the rule it recommends.

Step 1: sea only or any mode?

If the goods are loaded straight onto a ship, as bulk or break bulk cargo, the sea rules FAS, FOB, CFR and CIF fit. For containers, air, road, rail or a mix, use the seven any mode rules. The ICC is clear that containers should use FCA, CPT or CIP rather than FOB, CFR or CIF.

Step 2: who controls the main transport?

• The buyer has a forwarder or freight contract and better rates: choose an E or F rule (EXW, FCA, FAS, FOB).
• The seller ships often, gets good rates, or the buyer wants a delivered price: choose a C or D rule.

Step 3: where should the seller's job end?

Seller's job ends	Rule
Goods ready at its own door, nothing more	EXW (or FCA at the seller's premises, which is usually better)
Handed to the buyer's carrier, export cleared	FCA
Freight paid to destination, risk passes at origin	CPT, or CIP with insurance
At the buyer's place, ready for unloading	DAP
Unloaded at the named place	DPU
At the buyer's place with import duties paid	DDP

Step 4: insurance

Only CIF and CIP oblige the seller to insure. Under every other rule, the party that carries the risk decides whether to insure. Under C rules that is the buyer during the main voyage, so a buyer on CFR or CPT terms should insure from the point of shipment.

How to read the chart

Each column is a rule and each row a step of the journey, from packing at the factory to import clearance. "Seller" or "Buyer" shows who arranges and pays for that step. The orange line marks where the risk passes from seller to buyer. Hover over a cell, or tap it, for the full wording, for example when unloading depends on the freight contract.

Common mistakes when choosing

• Choosing EXW to "keep it simple" when the buyer cannot clear export in the seller's country.
• Choosing DDP without checking that the seller can register and pay import VAT or GST in the buyer's country.
• Naming a city instead of a precise place. Risk and cost pass at the named place, so write the address, terminal or port.
• Forgetting the edition. Add "Incoterms® 2020" after the place.

Once you have the rule, write it with the named place on your proforma invoice and commercial invoice. For background on all 11 rules, see the Incoterms 2020 guide.