Tools

Incoterms® 2020: who pays what and where risk transfers

Pick a rule and see who bears each cost — from packaging to final unloading — and where risk passes from seller to buyer. The four maritime rules (FAS, FOB, CFR, CIF) are flagged.

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Choose an Incoterm

FOB— Free On BoardGroup FSea / inland waterway only

Shipment journey — who pays each leg

Packaging & checking
Loading at origin
Export customs
Origin terminal / port
Main carriage
Destination terminal / port
Import customs & duties
Delivery to named place
Unloading at destination

SellerBuyerRisk passes to the buyer

Cost allocation

Packaging & checkingSeller
Loading at originSeller
Export customsSeller
Origin terminal / portSeller
Main carriageBuyer
Cargo insuranceBuyer
Destination terminal / portBuyer
Import customs & dutiesBuyer
Delivery to named placeBuyer
Unloading at destinationBuyer

Risk transfer

Risk passes to the buyer once the goods are on board the vessel at the port of shipment.

Insurance

This rule obliges neither party to insure: agree cover according to the risk each side carries.

“Incoterms” is a registered trademark of the International Chamber of Commerce (ICC). This tool is an independent educational reference; the official text of the rules is ICC publication 723.

Orientation only: the sales contract and the official ICC text always prevail. Agreed variants (e.g. “FOB stowed”) can shift the allocation.

Legal sources verified on July 15, 2026 · Official source: ICC — Incoterms® 2020 ↗