Calculators

Incoterms 2020 selector

Pick a rule and see which party carries the responsibility.

What Incoterms do not govern

The most common mistake is to load the whole contract onto the delivery term. Incoterms do not govern the transfer of title, the method of payment or the applicable law. These are separate clauses of the sales contract.

Cost and risk do not transfer at the same point

In the E, F and D groups both transfer at the same point. In the C group (CPT, CIP, CFR, CIF) they split: the seller pays freight to the destination, but risk passes to the buyer at departure. If damage occurs in transit, the buyer bears the loss even though the seller paid the freight.

Do not use FOB and CIF for containerised cargo

FOB and CIF tie the transfer of risk to the moment the goods are loaded on board the vessel. A container, however, is handed over at the terminal days before it is loaded on board. During that interval the goods are out of the seller’s control, yet the risk still sits with the seller. The correct rules are FCA and CIP.

How to write the rule

The code alone is not enough. The rule, the named place and the edition are written together:

FCA Gebze, Türkiye (Incoterms 2020)

The more precisely the place is described, the less room there is for differing interpretations. The publication of a new edition does not invalidate the previous one; whichever edition is written in the contract applies.

This tool is for general guidance; request a quote for exact pricing and capacity.

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