Define Delivery, Risk, and Cost Responsibilities

Incoterms® 2020 Selector

Narrow the rules that fit your transport and responsibility plan, compare the key obligations, and prepare a precise term for discussion with your buyer, seller, forwarder, or adviser.

Transaction Responsibilities

Answer from the agreed commercial arrangement—not only from what usually happens on your shipments.

Use the sea option for traditional port-to-port cargo delivered alongside or on board a vessel—not simply because one leg travels by sea.
Buyer-controlled export clearance points toward EXW, which the ICC notes is primarily suitable for domestic trade and can create export-clearance difficulties.
The correct type of named point depends on the selected rule. Use the most precise location the parties can operationally identify.

Rule Comparison

The result is a structured comparison starting point, not an automatic contract decision.

Your closest rule will appear here

Complete the responsibility questions and add a precise named place or port to compare the closest Incoterms® 2020 rule.

1. Describe the shipmentChoose the transport profile and main-carriage arrangement.
2. Allocate responsibilitiesSet insurance, customs, and unloading responsibilities.
3. Compare before agreeingReview the closest rule, alternatives, and exact named point.

What This Result Does—and Does Not—Tell You

Incoterms® rules allocate selected delivery, risk, cost, transport, insurance, and customs obligations. They do not replace the rest of the sales contract.

Delivery Is Not Always Destination

Under C rules, the seller may pay carriage to the named destination while risk transfers much earlier at the delivery point in the country of shipment.

Local Feasibility Still Matters

Confirm that the responsible party can legally and operationally complete export, transit, import, tax, insurance, and licensing obligations in the relevant countries.

The Sales Contract Must Do More

Payment, title to goods, product conformity, remedies, sanctions, force majeure, governing law, and dispute resolution require separate agreement.

Official ICC References

This independent selector uses high-level distinctions published by the International Chamber of Commerce. Read the official rules and transaction-specific guidance before using a term in a contract.

Incoterms® is a registered trademark of the International Chamber of Commerce. TradeGoAI is not affiliated with ICC, and this page is not an ICC publication.

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Frequently Asked Questions

Does this selector choose a legally binding Incoterms® rule for me?

No. It narrows the Incoterms® 2020 rules using the responsibilities you select and highlights points to compare. The parties must agree the final rule, named place or port, and any additional contract terms after checking the official ICC rules and transaction-specific legal, customs, insurance, and transport requirements.

Why does the selector route containerized or multimodal shipments away from FOB and CIF?

FOB, CFR, and CIF are sea and inland-waterway rules built around delivery or risk transfer when goods are on board the vessel. For containerized or multimodal movements, delivery commonly occurs earlier to a carrier or terminal, so this selector compares the any-mode FCA, CPT, or CIP rules instead. Confirm the actual delivery process before contracting.

Under a C rule, does risk stay with the seller until the named destination?

Not generally. Under CPT, CIP, CFR, and CIF, the seller arranges and pays carriage to the named destination, but risk transfers at the earlier delivery point in the country of shipment. The contract should identify the named destination and the delivery point where risk transfers.

Which Incoterms® 2020 rules require the seller to arrange cargo insurance?

CIP and CIF require the seller to arrange insurance for the buyer’s risk, but the default coverage levels differ. The ICC explains that CIP normally calls for a higher level of cover than CIF. The parties may agree different or additional coverage in their contract.

How should the selected rule be written in a sales contract?

Use the three-letter rule, a precise named place or port, and the edition, for example: FCA Seller Warehouse, Shenzhen, China, Incoterms® 2020. The correct named point depends on the rule, and C rules may also require the parties to identify the separate delivery point where risk transfers.

Continue from delivery responsibility into pricing, import cost, and order-quantity planning.

Export Price & Margin Calculator

Build a quote from entered costs, exchange rate, commission, and target margin.

 Landed Cost Calculator

Combine shipment charges and entered duty or tax rates into total and per-unit landed cost.

 MOQ Break-Even Calculator

Compare a proposed MOQ with the quantities required for break-even and target profit.
Closest Rule to Compare No Exact Single-Rule Match Enter a precise named place or port before comparing rules. Comparison ready. Review the official ICC rules before agreeing the term. Summary copied. Copy is unavailable in this browser. Use Download CSV instead. CSV downloaded. Incoterms® 2020 Selector Responsibility Closest Rule Summary Rule Named Place or Port Contract Reference Format Main Carriage Delivery and Risk Transfer Seller Insurance Obligation Export Clearance Import Clearance Destination Unloading Compare This Alternative Seller Buyer Not required by this rule Depends on the precise named delivery point Seller arranges and pays to the named destination Buyer arranges the main carriage Seller arranges carriage and bears risk to the named destination When goods are made available at the named place, not loaded When goods are delivered to the buyer’s carrier at the named place When goods are placed alongside the vessel at the port of shipment When goods are on board the vessel at the port of shipment When goods are handed to the first carrier at the agreed delivery point At the named destination, ready for unloading At the named destination, after unloading Seller arranges the coverage required by CIP Seller arranges the coverage required by CIF Buyer handles loading at seller’s premises and destination unloading Buyer unloads at the named destination Seller unloads at the named destination Buyer loads the goods on board the vessel Buyer arranges carriage and accepts export-clearance responsibility from the seller’s premises. Buyer arranges main carriage, seller clears for export, and the shipment uses a containerized, multimodal, or other any-mode delivery process. Buyer arranges sea carriage and seller delivers conventional cargo alongside the vessel after export clearance. Buyer arranges sea carriage and seller delivers conventional cargo on board the vessel after export clearance. Seller pays carriage to the named destination, risk transfers at origin, and seller-arranged insurance is not required. Seller pays carriage to the named destination, risk transfers at origin, and seller-arranged insurance is required. For conventional sea cargo, seller pays freight to the named port, risk transfers on board at shipment, and seller-arranged insurance is not required. For conventional sea cargo, seller pays freight to the named port, risk transfers on board at shipment, and seller-arranged insurance is required. Seller bears transport risk to the named destination; buyer handles import clearance and unloads. Seller bears transport risk to the named destination and unloads; buyer handles import clearance. Seller bears transport risk to the named destination and handles import clearance; buyer unloads. Your plan asks the seller to handle import clearance and destination unloading. DDP assigns import clearance to the seller but unloading to the buyer, while DPU assigns unloading to the seller but import clearance to the buyer. EXW places unusually broad responsibility on the buyer and is described by the ICC as primarily suitable for domestic trade. Confirm that the buyer can complete export formalities and load at the seller’s premises. Specify the exact delivery point where the seller hands the goods to the buyer’s carrier or places them alongside or on board the vessel. The named destination is not the risk-transfer point. Also agree the precise delivery point in the country of shipment where risk transfers to the buyer. Confirm import-clearance feasibility, unloading allocation, and the exact destination point before using a D rule. Do not force this responsibility combination into one rule. Compare DDP and DPU, then revise the allocation or add carefully drafted contract obligations with qualified advice. Compare when the buyer can handle loading and all export formalities from the seller’s premises. Compare when the seller clears for export and delivers to the buyer’s carrier. Compare for conventional sea cargo delivered alongside the vessel. Compare for conventional sea cargo delivered on board the vessel. Compare when the seller pays carriage but does not have to arrange buyer-risk insurance. Compare when the seller pays carriage and must arrange buyer-risk insurance. Compare for conventional sea cargo when seller pays freight without a seller insurance obligation. Compare for conventional sea cargo when seller pays freight and arranges the required insurance. Compare when seller bears risk to destination, buyer imports, and buyer unloads. Compare when seller bears risk to destination and unloads, while buyer imports. Compare when seller bears risk to destination and handles import clearance, while buyer unloads. Ex Works Free Carrier Free Alongside Ship Free on Board Carriage Paid To Carriage and Insurance Paid To Cost and Freight Cost, Insurance and Freight Delivered at Place Delivered at Place Unloaded Delivered Duty Paid
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