Incoterms
The eleven Incoterms® 2020 rules — who bears cost and risk, and where it transfers.
Incoterms® are the 11 international commercial terms published by the ICC; for a sale of goods they define exactly where cost and risk pass between seller and buyer and who arranges carriage, insurance and customs clearance. LOGIbook maps the Incoterms® 2020 rules across the factual dimensions that distinguish them.
For each term: transport mode, its E/F/C/D group, the point at which risk transfers, and the seller/buyer split of export clearance, carriage, insurance and import clearance — plus the matching Turkey national delivery code. This is a factual reference, not the official rules; the ICC Incoterms® 2020 text governs.
The rules fall into four families. Group E (departure) hands the goods over at the seller's premises; group F (FCA, FAS, FOB) leaves the main carriage to the buyer; group C (CPT, CIP, CFR, CIF) has the seller pay the carriage while risk still passes at origin; and group D (DAP, DPU, DDP) carries cost and risk through to the destination. Seven rules work for any mode of transport, and four — FAS, FOB, CFR and CIF — are reserved for sea and inland waterway shipments.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC) and the official rules are copyright ICC. This is a factual reference in logibook's own words — not the ICC rules; always rely on the official ICC Incoterms® 2020 text for the binding rules.
Responsibility matrix
| Term | Mode | Export | Carriage | Insurance | Import | Risk transfers | |
|---|---|---|---|---|---|---|---|
| Group E · Departure | |||||||
| EXWEx Works | Any | Buyer | Buyer | — | Buyer | Seller's premises | Detail → |
| Group F · Main carriage unpaid (buyer arranges) | |||||||
| FCAFree Carrier | Any | Seller | Buyer | — | Buyer | Handover to carrier | Detail → |
| FASFree Alongside Ship | Sea | Seller | Buyer | — | Buyer | Alongside ship | Detail → |
| FOBFree On Board | Sea | Seller | Buyer | — | Buyer | On board | Detail → |
| Group C · Main carriage paid (seller arranges, risk transfers at origin) | |||||||
| CPTCarriage Paid To | Any | Seller | Seller | — | Buyer | First carrier | Detail → |
| CIPCarriage and Insurance Paid To | Any | Seller | Seller | Seller | Buyer | First carrier | Detail → |
| CFRCost and Freight | Sea | Seller | Seller | — | Buyer | On board | Detail → |
| CIFCost, Insurance and Freight | Sea | Seller | Seller | Seller | Buyer | On board | Detail → |
| Group D · Arrival | |||||||
| DAPDelivered at Place | Any | Seller | Seller | — | Buyer | Named place | Detail → |
| DPUDelivered at Place Unloaded | Any | Seller | Seller | — | Buyer | After unloading | Detail → |
| DDPDelivered Duty Paid | Any | Seller | Seller | — | Seller | Named place, cleared | Detail → |
Frequently asked questions
- QWhat are Incoterms 2020?
- AIncoterms® are eleven standardised international commercial terms published by the International Chamber of Commerce (ICC). For a sale of goods they define who bears cost and risk at each stage and who arranges carriage, insurance and customs clearance, so buyer and seller share one common language.
- QHow many Incoterms are there, and what are the groups?
- AThere are eleven Incoterms 2020 rules in four groups: E — departure (EXW); F — main carriage unpaid, the buyer arranges carriage (FCA, FAS, FOB); C — main carriage paid, the seller arranges carriage but risk passes at origin (CPT, CIP, CFR, CIF); and D — arrival, the seller bears risk to destination (DAP, DPU, DDP).
- QWhich Incoterms can only be used for sea transport?
- AFour rules — FAS, FOB, CFR and CIF — are for sea and inland waterway transport only. The other seven (EXW, FCA, CPT, CIP, DAP, DPU, DDP) can be used for any mode of transport, including multimodal shipments.
- QWhat changed in Incoterms 2020 compared with 2010?
- ADPU (Delivered at Place Unloaded) replaced the former DAT and applies to any place, not only a terminal; CIP now requires a higher insurance level (Institute Cargo Clauses A) while CIF keeps the minimum (Clause C); and FCA added an option for the parties to arrange an on-board bill of lading.
- QWhat is the difference between the C-group and the D-group?
- AUnder C-terms the seller contracts and pays the main carriage, but risk passes to the buyer at origin (when the goods are handed to the carrier or loaded). Under D-terms the seller bears both cost and risk all the way to the named destination.
- QDo Incoterms cover payment or the transfer of ownership?
- ANo. Incoterms cover delivery, the transfer of risk, the allocation of costs and the responsibility for customs clearance. They do not govern the price, the payment terms, or the transfer of title or ownership — those belong to the sales contract.
- QWho decides which Incoterm to use?
- AThe buyer and seller agree the Incoterm and the named place in their sales contract. Incoterms are not imposed by law; they apply because the parties incorporate them into the contract.
- QWhich Incoterm places the most and the least obligation on the seller?
- AEXW (Ex Works) is the seller's minimum obligation — the buyer collects from the seller's premises and handles export clearance. DDP (Delivered Duty Paid) is the maximum — the seller delivers cleared for import with duties paid.
- QWhere can I find the official Incoterms 2020 rules?
- AThe official Incoterms® 2020 rules are published by the International Chamber of Commerce (ICC). This page is a factual reference, not the official text; the ICC rules govern.