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Incoterms® 2020: Know the Rules. Move with Confidence.

Who pays? Who carries the risk? Know where responsibilities shift before your cargo moves.

Explore the 11 Rules Find Your Incoterm

What Happens Between Seller and Buyer?

Incoterms® are 11 internationally recognised trade rules that define how costs, risks and delivery responsibilities are shared between buyers and sellers.

They help importers and exporters understand their obligations before goods move across borders.

Where Risk Transfers

Know when the risk of cargo loss or damage passes from seller to buyer.

Who Pays What

Understand who covers freight, handling, insurance and delivery costs.

Who Clears Customs

Clarify who manages export and import formalities, duties and taxes.

What Incoterms Don’t Cover

Ownership, payment terms and other contractual matters require separate agreements.

Explore the 11 Incoterms® Rules

See what each rule means for delivery, transport costs and risk. Select a card for a detailed breakdown.

Who Handles What? Compare the Rules

Compare the 11 Incoterms to see how freight costs, customs clearance, insurance and delivery responsibilities differ between buyers and sellers.

Seller Buyer No duty either side may insure its own risk

¹ FCA at the seller's premises: the seller loads. FCA elsewhere, such as a forwarder's depot: the seller delivers there ready for unloading.

² Depends on the freight contract. If the seller's freight rate includes destination terminal handling or unloading, the seller has paid it and cannot charge the buyer again unless agreed. Settle this in the sale contract.

Which Incoterm Suits Your Shipment?

Select your freight arrangements and delivery requirements to explore a possible match. Confirm the terms before agreeing to a shipment.

1Who will arrange and pay for the main freight?

2How will your cargo be transported?

3Can the seller clear export in its own country?

Suggested Incoterm

FCA

Incoterms in South African Trade

International trade rules work alongside local customs and transport requirements. Here are four important considerations for shipments involving South Africa.

Customs Valuation

SARS customs valuation requirements influence how freight and insurance costs are treated when calculating import duties and taxes.

DDP Import Arrangements

Overseas sellers must confirm their ability to meet South African import clearance, duty and tax obligations before agreeing to DDP.

Named Delivery Location

Specify the exact port, terminal, warehouse or delivery address to establish where contractual delivery takes place.

Transport Mode and Routing

Choose an Incoterm that suits the cargo, transport mode and agreed delivery arrangements.

Common Incoterms Mistakes to Avoid

Using Outdated Trade Terms

Terms such as DDU and DAT have been replaced. Use the appropriate rule from Incoterms® 2020.

Choosing the Wrong Transport Rule

FOB and CIF are designed for sea and inland waterway transport, not air or road shipments.

Leaving the Delivery Point Unclear

Specify the named location and applicable Incoterms edition in the sales agreement.

Confusing Freight Costs with Risk

Paying for transportation does not necessarily mean carrying the risk throughout the journey.

Overlooking Insurance Requirements

Understand who must arrange insurance and whether the available cover suits the cargo.

How Transglobal Supports Your Shipment

Once your trade terms are agreed, the next step is putting the right freight arrangements in place. Transglobal Cargo supports international shipments through coordinated transport, customs and specialised logistics services.

Freight Forwarding

Plan and coordinate air, sea and road freight movements across international trade routes.

Freight services

Customs Brokerage

Manage import and export documentation, customs clearance and regulatory requirements.

Customs brokerage

Cargo Insurance

Arrange suitable cargo protection based on shipment value, transport risks and coverage requirements.

Cargo insurance

Specialised Cargo Logistics

Coordinate dangerous goods, military cargo, oversized loads and complex project shipments.

Specialised cargo

Frequently Asked Questions

What are the 11 Incoterms in 2020?

The rules are EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU and DDP. Seven apply to any transport mode, while four are specific to sea and inland waterway transport.

Which Incoterm is suitable for container shipping?

FCA is commonly preferred when the buyer arranges main carriage. CPT or CIP may be suitable when the seller arranges transport, depending on the agreed responsibilities.

What is the difference between CIF and CIP?

CIF applies to sea and inland waterway transport and generally requires minimum specified insurance cover. CIP applies to any transport mode and generally requires broader insurance protection.

Do Incoterms determine ownership of goods?

No. Incoterms define delivery, cost and risk responsibilities. Ownership transfer and payment terms must be agreed separately.

What is the difference between DAP and DDP?

Under DAP, the buyer generally handles import clearance and duties. Under DDP, the seller takes responsibility for import clearance and applicable duties and taxes.

Shipping documentation and trade terms for international cargo

Need Help Planning Your Shipment?

From selecting suitable freight arrangements to coordinating customs clearance and delivery, Transglobal Cargo helps businesses manage international cargo movements with confidence. Share your shipment requirements with our team to explore the right logistics solution.

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Incoterms® is a registered trademark of the International Chamber of Commerce. General guidance only; refer to the official ICC rules for your contract. Last reviewed October 2026.