Understand who arranges transport, who pays for each part of the journey, and exactly where risk passes from seller to buyer. Explore all 11 Incoterms® 2020 rules before agreeing terms with your supplier.
01
Choose an Incoterm
Start with your transport mode, then open a rule to see its delivery point, costs, and practical implications.
Selected rule
EXW
Ex Works
Any transport mode
Goods made available at the named place.
01Risk passes to buyer
When the goods are available to the buyer at the named place, before loading onto the collecting vehicle.
02Seller-paid transport
The seller pays to prepare and make the goods available at the named place. The buyer pays for collection and onward transport.
Follow the shipment
Swipe to explore the full route
Risk
SellerBuyer
When the goods are available to the buyer at the named place, before loading onto the collecting vehicle.
Transport costs
SellerBuyer
The seller pays to prepare and make the goods available at the named place. The buyer pays for collection and onward transport.
01
Seller premises
02
Origin transport
03
Delivery to carrier / vessel
04
Main carriage
05
Destination terminal
06
Named destination
07
Unloaded
Schematic route: markers show handoff points, not distance. Under C terms, risk changes before seller-paid carriage ends. Exact delivery and cost terms are explained above.
02
The responsibilities, in detail
Who is responsible?
Task
Responsible party
Loading at seller premises
Buyer
Export clearance
Buyer
Arrange and pay for main carriage
Buyer
Import clearance and duties
Buyer
Unloading at destination
Buyer
Cargo insurance obligation
Neither party is required to insure under this rule.
Unloading charges may be included in the seller's carriage contract. Responsibility for unloading and risk transfer still follow the selected rule.
Where risk changes hands
When the goods are available to the buyer at the named place, before loading onto the collecting vehicle.
Before you agree
For exports, confirm that the buyer can complete export formalities. FCA can be more suitable when the seller should load and clear the goods for export.
What the seller pays for
The seller pays to prepare and make the goods available at the named place. The buyer pays for collection and onward transport.
Seller responsibilities
Prepare, check and package the goods for transport.
Make the goods and commercial invoice available at the agreed place.
Buyer responsibilities
Load the collecting vehicle and arrange the full transport journey.
Handle export, transit and import clearance, including applicable duties and taxes.
Unloading charges may be included in the seller's carriage contract. Responsibility for unloading and risk transfer still follow the selected rule.
Before you agree
For exports, confirm that the buyer can complete export formalities. FCA can be more suitable when the seller should load and clear the goods for export.
Write it clearly in your contract
EXW [named place of delivery], Incoterms® 2020
Compare two Incoterms
See how the delivery point, transport costs, and customs obligations change between two rules.
Task
EXW
FCA
Risk passes to buyer
When the goods are available to the buyer at the named place, before loading onto the collecting vehicle.
At the seller’s premises: after loading onto the buyer’s vehicle. At another agreed place: when the goods are available to the nominated carrier on the seller’s vehicle, ready for unloading.
Seller-paid transport
The seller pays to prepare and make the goods available at the named place. The buyer pays for collection and onward transport.
The seller pays up to the agreed carrier handover, including export clearance. The buyer pays for carriage from that point.
Import clearance and duties
Buyer
Buyer
Incoterms® 2020
What changed in Incoterms® 2020?
01
DAT became DPU
Delivered at Terminal was renamed Delivered at Place Unloaded. Delivery can take place anywhere agreed, provided the seller can unload there.
02
CIP and CIF use different insurance levels
CIP now requires the broader Institute Cargo Clauses (A) cover by default. CIF retains the minimum Clauses (C) cover. The parties can agree a different level.
03
FCA allows an optional on-board bill of lading
When agreed, the buyer instructs its carrier to issue an on-board bill of lading to the seller. This supports documentary payment requirements without changing FCA's delivery point.
04
Security obligations are clearer
Transport and customs security requirements, and their related costs, are stated more explicitly within each rule.
Agree the terms. Plan the shipment.
Share your supplier's quote and the named place with ATS. We can help clarify the responsibilities and plan the shipment from China around the services you need.
This guide is a practical summary of Incoterms® 2020, not the full ICC rules or legal advice. Incoterms allocate delivery obligations, costs, and risk; they do not determine ownership or payment terms. Specify the exact named place and the 2020 edition in your contract.
