The Incoterms® 2020 rules* are divided into general rules—applicable to all modes and means of transport—and rules specific to maritime and inland waterway transport only.

General rules include: EXW, FCA, CPT, CIP, DAP, DPU, and DDP.
Rules for maritime and inland waterway transport include: FAS, FOB, CFR, and CIF.

General Rules (for all modes of transport)

EXW – Ex Works

Means that the seller makes the goods available to the buyer (e.g., at a factory or warehouse). The delivery location does not have to be the seller’s premises, but it is recommended that the parties define the specific point clearly. Under this rule, the seller is not obligated to load the goods onto a collecting vehicle nor to clear the goods for export if applicable.

FCA – Free Carrier

The seller delivers the goods to the buyer in one of two ways:

– If the named place is the seller’s premises, delivery occurs when the goods are loaded onto the buyer’s transport.

– If the named place is elsewhere, delivery occurs once the goods arrive, are unloaded from the seller’s transport, and are placed at the carrier’s or buyer-appointed person’s disposal.

CPT – Carriage Paid To

The seller delivers the goods and transfers the risk to the buyer when they hand the goods over to a carrier arranged by the seller, or when the goods are otherwise delivered. From this moment, the seller is not responsible for the goods reaching their destination in good condition or quantity. However, the seller must contract for carriage to the agreed destination.

CIP – Carriage and Insurance Paid To

As with CPT, the seller delivers the goods and transfers the risk by handing them over to the carrier. However, under CIP, the seller must also procure insurance covering the buyer’s risk of loss or damage to the goods during transit, at least up to the agreed destination.

DAP – Delivered at Place

The seller delivers the goods and transfers the risk to the buyer when the goods are placed at the buyer’s disposal on the arriving means of transport, ready for unloading at the named destination (or agreed point within it). The seller bears all risks until the goods reach this point.

DPU – Delivered at Place Unloaded

The seller delivers and unloads the goods, transferring the risk once the goods are placed at the buyer’s disposal at the named destination (or agreed point within it). This is the only rule that requires the seller to unload the goods at destination. The seller must ensure they are able to carry out unloading. If the parties do not want the seller to bear unloading responsibility and cost, they should use DAP instead.

DDP – Delivered Duty Paid

The seller delivers the goods to the buyer, cleared for import, on the arriving means of transport, ready for unloading at the named destination (or agreed point within it). The seller bears all costs and risks involved in delivering the goods, including duties and taxes.

Rules for Maritime and Inland Waterway Transport

FAS – Free Alongside Ship

The seller delivers the goods when they are placed alongside the vessel nominated by the buyer (e.g., on the quay or barge) at the named port of shipment. Risk passes to the buyer at that point, who bears all costs from then on.

FOB – Free On Board

The seller delivers the goods when they are on board the vessel nominated by the buyer at the port of shipment. Risk passes to the buyer once the goods are on board the vessel.

CFR – Cost and Freight

The seller delivers the goods on board the vessel and pays the cost of freight to the destination port. Risk passes to the buyer once the goods are loaded onto the vessel. The seller is not required to provide insurance; buyers are advised to obtain their own.

CIF – Cost, Insurance and Freight

As with CFR, but the seller is also obliged to obtain insurance coverage for the buyer against the risk of loss or damage during carriage, from the port of loading to at least the port of destination.

*Based on the official Incoterms® 2020 handbook, bilingual Polish-English edition (ICC Publication No. 723 PL/EN).