Incoterms 2020 Selector for Indian Exporters

All 11 ICC Incoterms 2020 rules — select any rule to see the full cost and risk split, or answer three questions and let the wizard recommend the right term.

Smart Selection Wizard
The assistant recommends an ICC rule and shows its full matrix — always confirm the named place and insurance clause in your sales contract.

Incoterms Cost & Risk Matrix

The detailed allocation of costs and risks between seller and buyer according to the ICC rule selected.

FOB

Free On Board - Risk transfers once goods are loaded on the vessel. Marine transport only.

Transfer of Risk Point: Loaded on board the vessel at the designated port of loading.
Transaction Element Responsibility

Insurance & Compliance Note

Under standard CIF and CIP terms, the seller is legally required to secure marine cargo insurance. For all other terms, insurance is optional but highly recommended to protect against cargo damage during transit.

Side-by-Side Rule Comparison

Pick any two rules — the differing cost rows are highlighted so the real argument points jump out (try CIF vs FOB or DDP vs DAP).

Quick Answer: Which Incoterm 2020 should you choose?

There are 11 Incoterms 2020 rules: seven any-mode rules (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four sea-only rules (FAS, FOB, CFR, CIF). Most Indian exporters use FOB when the buyer books freight, CIF when they arrange sea freight themselves, and FCA for container handovers. The chargeable decision is risk transfer: pick the rule whose handover point matches where you can safely stop being responsible. This free selector shows the full seller-vs-buyer cost and risk matrix for every rule.

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How the Incoterms Selector Works

1
Pick a Rule or Run the Wizard

Browse any of the 11 ICC rules directly, or answer three questions — transport mode, who books freight, who clears import.

2
Read the Cost & Risk Matrix

Eight transaction elements from export packing to final delivery, each badged SELLER or BUYER, plus the exact risk transfer point.

3
Write It Into the Contract

Use the rule with a named place (e.g. “FCA ICD Tughlakabad, Incoterms 2020”), verify the insurance clause, and send the matrix to us on WhatsApp for a contract review.

The allocations follow the ICC Incoterms 2020 publication exactly: four sea-only rules (FAS, FOB, CFR, CIF), seven any-mode rules (EXW, FCA, CPT, CIP, DAP, DPU, DDP), CIF insures at Clause C while CIP was raised to Clause A in the 2020 edition, and DPU is the only rule where the seller unloads at destination.

Incoterms 2020 for Indian Exporters: The Complete 11-Rule Guide

Whether you ship garments from Tirupur or engineering goods from Pune, the three-letter rule on your proforma invoice decides who pays for every leg of the journey — and where your risk ends. Incoterms 2020, published by the International Chamber of Commerce, define exactly eleven rules. Choosing the wrong one quietly moves freight costs, insurance duties and customs risk onto your side of the contract.

All 11 Incoterms 2020 rules at a glance

EXW FCA FAS FOB CFR CIF CPT CIP DAP DPU DDP
IncotermModeKey Obligation
EXWAny modeBuyer collects goods at seller's premises
FCAAny modeSeller delivers to carrier nominated by buyer
FASSea onlySeller delivers alongside the ship at the port of loading
FOBSea onlySeller loads goods on vessel, buyer handles freight
CFRSea onlySeller pays freight to destination; risk passes on board
CIFSea onlySeller pays freight and Clause C insurance to destination
CPTAny modeSeller pays carriage to destination; risk at first carrier
CIPAny modeSeller pays carriage and Clause A comprehensive insurance
DAPAny modeSeller delivers ready for unloading, buyer clears import
DPUAny modeSeller delivers AND unloads; only rule where seller unloads
DDPAny modeSeller manages all duties and delivery to buyer

FOB - Most Common for Indian Exporters

FOB (Free On Board) is the most widely used rule for Indian exporters. The buyer controls international freight and insurance, and the seller's responsibility ends once goods are loaded on the vessel. This shifts freight costs and transit risk to the overseas buyer, protecting Indian exporters from rate fluctuations. One practical caveat: Indian documents often write “FOB” on containerized or air shipments too — under ICC 2020 those should be FCA, with risk passing when the goods are handed to the carrier.

CIF vs CFR - When Buyers Ask for Inclusive Pricing

CIF (Cost, Insurance and Freight) and CFR (Cost and Freight) both put the seller on the hook for ocean freight to the destination port; the difference is that CIF adds a mandatory (basic, Clause C) insurance obligation. Risk still passes on board the vessel at the origin port — so if the cargo is damaged mid-ocean, the buyer claims on the policy, not you. Use the selector above to compare the two line by line.

DPU - The Rule New in 2020

DPU (Delivered at Place Unloaded) replaced DAT in the 2020 edition and is the only rule that obliges the seller to unload the goods at destination. It suits project cargo and buyer-controlled destinations where unloading access matters. Indian exporters should name a precise place and confirm unloading capability before accepting DPU.

DDP caution for Indian exporters

DDP makes you responsible for the buyer's import duties and taxes in a jurisdiction whose rates you do not set. Accept DDP only with a trusted destination agent and a written duty estimate; otherwise offer DAP and let the buyer clear import locally.

DDP for Indian importers: what to insist on

When a foreign supplier quotes DDP to you, import duty, IGST and clearance costs are buried inside their price — and your own CHA never touches the file. As the Indian importer you lose control of classification, valuation and the documentation your own compliance depends on. Before accepting DDP, insist on a written duty computation from the seller’s destination agent, or counter-offer CIF/CFR with your own broker clearing import — usually cheaper and always more transparent.

Official references

Last updated: 11 September 2026. Reviewed by One Link Exim Solutions — trade documentation advisors for Indian importers and exporters. This tool explains standard ICC allocations; the sales contract and insurance policy always govern.

How This Selector Is Different

Frequently Asked Questions

What are Incoterms 2020?

Incoterms 2020 are international commercial terms published by ICC (International Chamber of Commerce) that define buyer and seller responsibilities in trade contracts. They clarify who handles costs, risks, insurance, and customs clearance at each stage of shipping.

How many Incoterms 2020 rules are there?

There are exactly 11 rules in Incoterms 2020. Seven apply to any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four apply only to sea and inland waterway transport (FAS, FOB, CFR, CIF). DPU is the rule introduced in the 2020 edition, replacing DAT from 2010.

What is the difference between FOB and CIF?

FOB (Free On Board) means the seller delivers goods on board the vessel and the buyer handles freight and insurance. CIF (Cost, Insurance and Freight) means the seller pays for freight and insurance to the destination port. Both are for sea and inland waterway transport only.

Which Incoterm is best for Indian exporters?

FOB is most commonly used by Indian exporters as the buyer controls international freight and insurance. CIF is preferred when the buyer requests the seller to arrange shipping. EXW shifts all responsibility to the buyer but may make Indian goods less competitive if buyers avoid extra work.

What is DPU Incoterm and why is it new?

DPU (Delivered at Place Unloaded) is the only rule introduced in Incoterms 2020, replacing DAT from the 2010 edition. The seller delivers and unloads the goods at the named destination; the buyer handles import clearance and duties. It is the only rule where the seller unloads at destination.

What is EXW Incoterm?

EXW (Ex Works) places minimum obligation on the seller. The buyer collects goods at the seller's premises and manages all transport, export clearance, and costs. It is suitable when the buyer has a reliable freight forwarder.

What is the difference between DAP and DDP?

DAP (Delivered at Place) means the seller delivers goods ready for unloading at the destination, but the buyer handles import duties and clearance. DDP (Delivered Duty Paid) means the seller manages and pays for import duties, taxes, and clearance at the destination.

Which Incoterm is suitable for air freight?

For air freight, use Incoterms designed for any mode of transport: FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAP (Delivered at Place), DPU or DDP. FOB, CIF, FAS and CFR are only for sea or inland waterway transport.

Who pays for insurance under CIF and CIP?

Under CIF, the seller is required to purchase marine cargo insurance under Clause C (basic cover) of the Institute Cargo Clauses. Under CIP, the seller must purchase comprehensive insurance under Clause A - the 2020 edition raised CIP insurance to Clause A while CIF stays at Clause C. For other rules, insurance is optional but recommended.

Is DDP safe for Indian exporters?

DDP is risky for Indian exporters because the seller pays the destination country's import duties and taxes without visibility into local rates, and handles import clearance through a foreign broker. Use DDP only with a trusted destination agent and a priced duty estimate in the contract; otherwise offer DAP and let the buyer clear import.

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