How to write Incoterms in a quote
Write the rule, the named place and the version: “FOB Izmir Port, Incoterms® 2020” or “DAP Lyon, France, Incoterms® 2020”. Without the named place, it is unclear where costs and risk transfer.
The rules fall into two groups:
- Any mode of transport (7 rules): EXW, FCA, CPT, CIP, DAP, DPU, DDP. Use these for containers, road, air and multimodal shipments.
- Sea and inland waterway only (4 rules): FAS, FOB, CFR, CIF.
Common mistakes
- Using FOB for containers: A container is handed over at the terminal before it is loaded, so risk is unclear in between. FCA usually fits container shipments better.
- Forgetting export clearance under EXW: Under EXW the buyer handles export clearance. If a foreign buyer cannot clear goods in your country, use FCA.
- Relying on CIF insurance: CIF only requires minimum cover. Agree on wider cover separately if needed.
- Offering DDP without knowing the destination: Under DDP the seller pays the buyer’s import duties and handles import clearance.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This summary is for guidance; refer to the official ICC rules for contracts.
Work out carton volume and container needs with the CBM calculator.
Frequently asked questions
What is the difference between FOB and CIF?
Under FOB the buyer pays sea freight and insurance; under CIF the seller does. In both, risk passes to the buyer when the goods are loaded on board at the port of shipment.
What is the difference between EXW and FCA?
Under EXW the seller only makes the goods available at its premises; loading and export clearance are the buyer’s job. Under FCA the seller clears the goods for export and hands them to the buyer’s carrier.
What is the difference between DAP and DDP?
In both, the seller delivers to the named destination. Under DDP the seller also pays import duties and handles import clearance; under DAP the buyer does.
Is Incoterms 2020 still current?
Incoterms® 2020 has applied since 1 January 2020. Contracts should name the version they use.
Last updated: 31 October 2026 · By the Offerneta team