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Interactive Incoterms 2020 Guide

Cost and risk matrix for the 11 Incoterms 2020 rules (EXW to DDP), details per term, and a chooser based on how you actually ship.

Incoterms chooser

Answer for how you actually ship
Type of cargo
Who books and pays the main carriage?
Where does the seller hand over the goods?

Suggested rule

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FCA

Free Carrier

Where risk passesWhen the goods are handed to the buyer's carrier at the named place (loaded, if at the seller's premises).
Alternatives

⚠ FOB/FAS are meant for cargo loaded straight onto the ship. For containers, hand over at the terminal/depot under FCA so the risk does not stay with the seller.

FCA

Free CarrierGroup FAny mode
Where risk passes
When the goods are handed to the buyer's carrier at the named place (loaded, if at the seller's premises).
Seller's costs
The seller pays up to delivery, including export clearance.
Insurance
No obligation.
Note
Recommended for containers. Incoterms 2020 lets the buyer instruct its carrier to issue an on-board B/L to the seller.

Cost & responsibility matrix

Tap a rule code for details
Cost line
Export packagingSSSSSSSSSSS
Loading at seller's premisesBSSSSSSSSSS
Export clearanceBSSSSSSSSSS
Pre-carriage to port/terminalBS/BSSSSSSSSS
Origin terminal chargesBBSSSSSSSSS
Loading on main carrierBBBSSSSSSSS
Main carriage (freight)BBBBSSSSSSS
Cargo insurance (obligation)—————S—S———
Unloading & destination terminalBBBBB*B*B*B*SSS
On-carriage to destinationBBBBBBS/BS/BSSS
Unloading at named placeBBBBBBBBBSB
Import clearanceBBBBBBBBBBS
Import duties & taxesBBBBBBBBBBS
Legend
  • SSeller
  • BBuyer
  • B*Buyer, unless included in the seller's contract of carriage
  • S/BDepends on the place of delivery
  • —No obligation
Incoterms® is a trademark of the International Chamber of Commerce. This summary is educational, not the official ICC text. Write the full rule with place and version in your contract, e.g. "FCA Cikarang Dry Port, Incoterms® 2020".

About this calculator

Incoterms® are the standard rules of the International Chamber of Commerce (ICC) that split the tasks between seller and buyer in the trade of goods: who books transport, who handles export and import clearance, who pays the costs at each point, and where the risk of loss or damage passes. The current version is Incoterms 2020 with 11 rules in four groups: E (EXW), F (FCA, FAS, FOB), C (CFR, CIF, CPT, CIP) and D (DAP, DPU, DDP).

The most common mistake is using FOB, CFR or CIF for containers. Those three rules were designed for sea transport where the seller actually loads the goods on board the vessel. A container is usually handed over at a terminal or depot long before it is loaded, so the seller carries risk during a period when it no longer controls the goods. For containers the ICC recommends the equivalents FCA, CPT and CIP.

This guide contains a 13-line cost and responsibility matrix for every rule, where risk passes, the insurance obligations (CIF at least ICC C, CIP at least ICC A since 2020) and an interactive chooser: answer a few questions about the mode, who books the freight and where risk should pass, then see the matching rule with its warnings. The matrix is an original educational summary, not the official ICC text; always write the full rule with its named place in your contract, for example "FCA Cikarang Dry Port, Incoterms® 2020".

Worked example

A furniture exporter in Jepara ships a 40HC container, the European buyer books the freight, and the old contract says "FOB Semarang". In the chooser: container cargo, freight booked by the buyer, handover on board → the result is FCA with a warning that FOB does not suit containers, with FOB as the alternative.

If instead the seller books freight and insurance while risk may pass in the origin country, the chooser suggests CIP (insurance at least ICC A), not CIF. In the matrix the difference between FAS and FOB shows on the loading on main carrier line: the buyer pays under FAS, the seller under FOB.

How to use it

  1. Answer the chooser

    Choose bulk/breakbulk or containers, who books the main freight and where risk should pass.

  2. Read the suggested rule

    See the matching rule, its warnings (for example FOB for containers) and the alternatives you can negotiate.

  3. Compare in the matrix

    Use the matrix to see who pays each cost line; tap a rule code for its risk and insurance details.

Frequently asked questions

What is the difference between FOB and FCA?
Under FOB risk passes when the goods are on board, and the rule is for sea transport only. Under FCA risk passes when the goods are handed to the buyer’s carrier, for example at a container depot or terminal. For containers, FCA is the better fit.
Does CIF mean the seller carries the risk to the port of destination?
No. Under CIF the seller pays freight and insurance to the destination port, but risk passes to the buyer when the goods are loaded at the port of origin. That is why the seller must buy insurance for the buyer’s benefit.
What changed in Incoterms 2020?
DAT became DPU, CIP now requires insurance of at least Institute Cargo Clauses (A), FCA allows an on-board B/L for the seller, and seller or buyer may use their own transport under FCA, DAP, DPU and DDP.
When should I use DDP?
Only when the seller can act as the importer in the destination country and pay the duties and taxes there. In Indonesia an import needs an NIB/API, so a foreign seller often cannot be the importer; DAP is usually more realistic.
Do Incoterms deal with ownership or payment?
No. Incoterms cover delivery, risk, costs and related documents only. Title, price, payment terms and disputes are governed by the sales contract and the applicable law.

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