Text version of this infographic
The same data as the figure, as text, for screen readers.
| Rule | Transport mode | Export clearance | Main freight | Insurance | Risk passes to the buyer | Import clearance and duty |
|---|---|---|---|---|---|---|
| EXW (Ex Works) | Any mode | Buyer | Buyer | No duty in the rule | At the named place, which may or may not be the seller's premises | Buyer |
| FCA (Free Carrier) | Any mode | Seller | Buyer | No duty in the rule | On delivery: loaded onto the buyer's vehicle, or arrived at the named place | Buyer |
| FOB (Free on Board) | Sea and inland waterway only | Seller | Buyer | No duty in the rule | When loaded on board the vessel at the named port | Buyer |
| CIF (Cost, Insurance and Freight) | Sea and inland waterway only | Seller | Seller | Seller, at least Institute Cargo Clauses C | When on board the vessel at the port of shipment | Buyer |
Not legal, customs or tax advice. General information only; check duties, documents and contract terms with your customs broker or adviser. Guides describe the rules in slightly different words; check the official ICC Incoterms 2020 text.
How to use this infographic
- Decide the transport mode: sea only points to FOB or CIF; any mode points to EXW or FCA.
- Read across the row to see who handles export, freight and insurance, and where risk passes.
- Write the rule, the named place and the edition into your order, and check it against the ICC text.
Questions
What is the difference between EXW and FCA?
Under EXW the buyer clears export; under FCA the seller clears the goods for export and risk passes on delivery to the buyer's carrier.
Who insures under CIF?
The seller insures, at least Institute Cargo Clauses C, and pays freight to the destination port. Risk still passes to the buyer once the goods are on board at the port of shipment.
Who pays import duty?
Import duty is the buyer's under all four rules shown. This is general information, not legal, customs or tax advice.
Not legal, customs or tax advice. General information only; check duties, documents and contract terms with your customs broker or adviser.
Further reading
- Incoterms 2020 (GW freight forwarding guide)
- Incoterms 2020 explained (Goods Across Borders)
- Incoterms 2020 (International Chamber of Commerce)
- Know Your Incoterms (U.S. International Trade Administration)
- Rules for any mode or modes of transport (ICC Digital Library), library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_04_RulesAny.htm
- Rules for Sea and Inland Waterway Transport (ICC Digital Library), library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm
- ArtzFolio Private Label: EXW, FCA, FOB and CIF compared, privatelabel.artzfolio.com/guides/incoterms-exw-fob-cif-for-buyers-importing-from-india/
Confirm live prices and terms with ArtzFolio Private Label before you order.