Pick a rule, or compare two side by side. See who pays for each step from the seller's door to the buyer's, and the exact point where the risk passes.
Tap a rule
Any mode, including air and courier
Sea and inland waterway only
Rule A
ICC 2020The seller clears for export and loads the goods on the buyer's ship. The buyer pays the sea freight onward.
Where the risk changes hands
Seller Buyer
| Cost | Seller | Buyer |
|---|---|---|
| 01Packing for export | Seller | · |
| 02Loading at the seller's premises | Seller | · |
| 03Export customs clearance | Seller | · |
| 04Origin port / airport handling | Seller | · |
| 05Main freight (air, sea or road) | · | Buyer |
| 06Cargo insuranceNot required by the rule; the party carrying the risk usually buys it. | · | Buyer |
| 07Unloading at destination | · | Buyer |
| 08Import clearance, duty and VAT | · | Buyer |
| 09Delivery to the buyer's door | · | Buyer |
Seller pays under FOB
4 of 9
Buyer pays the other 5.
FOB: seller pays 4 of 9 cost lines; risk passes when the goods are on board the vessel at the port of shipment.
Data source
Incoterms decide who pays and who carries the risk between seller and buyer. They do not decide who owns the goods, how you get paid, or which documents customs wants. Always write the named place after the rule, for example FCA Kathmandu Airport, and agree it in the sales contract.
Under FOB the buyer pays the sea freight and insurance. Under CIF the seller pays both. In both, when the goods are on board the vessel at the port of shipment.
Use one of the rules for any mode: EXW, FCA, CPT, CIP, DAP, DPU, DDP. FAS, FOB, CFR and CIF are for sea and inland waterway only.
The seller does everything: freight, import clearance, duty and VAT. The buyer only unloads. The buyer usually only unloads the goods.
Incoterms® 2020 (ICC). The ICC publication is the authoritative text; this page is a plain-language summary.