EXWEx Works
EXW (Ex Works) is the Incoterm with the minimum seller obligation. The buyer assumes all costs and risks from the seller's premises — including loading and export clearance.
Simulate now →Incoterms 2020
Risk & Cost Simulator
Analyze all 11 Incoterms 2020: Who bears costs and risk at each stage?
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Important notes
- Under DAP the buyer is responsible for import clearance. Delays in import clearance are at the buyer's expense.
Common mistakes
- Confusing DAP with DDP — under DAP the buyer pays import duties and taxes.
- Ambiguity about named place — must be specified precisely in contract (terminal, warehouse, address).
DAPDelivered at Place
At the named place of destination, ready for unloading (before unloading)
Export clearance: SellerImport clearance: Buyer
- Origin (seller)Seller
- Export clearance (seller)Seller
- Main carriage (seller bears risk and costs)Seller
- Ready for unloading at destination → RISK TRANSFERBuyerRisk Transfer
- Unloading (buyer)Buyer
- Import clearance (buyer)Buyer
Legal disclaimer: The information provided by this simulator is based on Incoterms® 2020 published by the International Chamber of Commerce (ICC). It is for informational purposes only and does not constitute legal advice. Actual cost allocation depends on the individual sales contract, local trade practice, and any deviating agreements between the parties. Frachtportal.com assumes no liability for decisions made based on this tool.
Incoterms 2020 – Complete Reference for Exporters and Importers
Incoterms® 2020 (International Commercial Terms) are 11 standardized trade clauses published by the International Chamber of Commerce (ICC) and used worldwide in international trade. They precisely define who — seller or buyer — bears which costs and risks in the transport of goods. Incoterms do not, however, govern transfer of ownership, payment terms, or applicable law.
The ICC published Incoterms 2020 as the successor to Incoterms 2010 with four key changes: renaming DAT to DPU; higher insurance standard for CIP (ICC A instead of ICC C); new FCA option for on-board bill of lading; explicit permission for own transport means under DAP/DPU/DDP.
Incoterms 2020 Overview: Risk Transfer and Insurance Obligation
Sea-Only Incoterms: FAS, FOB, CFR, CIF
These four clauses are exclusively valid for sea and inland waterway transport. For containerized cargo, air freight, road, or rail, the equivalent all-modes terms (FCA, CPT, CIP) should be used.
FCAFree Carrier
FCA (Free Carrier) is suitable for all transport modes and the recommended alternative to FOB for container shipments. Risk transfers when goods are handed over to the first carrier at the named place.
Simulate now →FASFree Alongside Ship
SeaFAS (Free Alongside Ship) applies exclusively to sea and inland waterway transport. The seller delivers goods alongside the vessel at the port of shipment. Risk passes to the buyer at that point.
Simulate now →FOBFree On Board
SeaFOB (Free On Board) is one of the most widely used Incoterms in sea freight. The seller delivers goods on board the vessel at the port of shipment. Risk and freight costs pass to the buyer from that point. FCA is recommended for containerized cargo.
Simulate now →CFRCost and Freight
SeaCFR (Cost and Freight) requires the seller to pay ocean freight to the destination port. However, the transport risk transfers to the buyer already at the port of shipment. This critical distinction makes cargo insurance essential for the buyer.
Simulate now →CIFCost, Insurance and Freight
SeaCIF (Cost, Insurance and Freight) requires the seller to pay ocean freight and procure minimum cargo insurance (ICC C). However, risk transfers to the buyer at the port of shipment. The minimum insurance only covers major casualties — valuable goods need additional protection.
Simulate now →CPTCarriage Paid To
CPT (Carriage Paid To) is suitable for all transport modes and the multimodal equivalent of CFR. The seller pays freight to the named destination, but risk transfers to the buyer upon handover to the first carrier.
Simulate now →CIPCarriage and Insurance Paid To
CIP (Carriage and Insurance Paid To) is suitable for all transport modes and the multimodal equivalent of CIF. The seller pays freight and must procure comprehensive ICC A insurance (All Risks) — significantly more protection than CIF.
Simulate now →DAPDelivered at Place
DAP (Delivered at Place) requires the seller to deliver goods to the named destination — including all freight costs and risks. Import clearance and unloading are the buyer's responsibility.
Simulate now →DPUDelivered at Place Unloaded
DPU (Delivered at Place Unloaded) is the only Incoterm where the seller takes responsibility for unloading at destination. Risk transfers only after unloading is complete. Import clearance remains the buyer's responsibility.
Simulate now →DDPDelivered Duty Paid
DDP (Delivered Duty Paid) is the maximum obligation Incoterm for the seller, covering all costs and risks to destination — including import duties, VAT and all charges in the buyer's country.
Simulate now →The 7 Most Common Incoterms Mistakes in International Trade
⚠Using FOB for containerized cargo
FOB was designed for break-bulk cargo. With container transport, risk under FOB transfers when goods are placed on the vessel — but the container is usually already in the port terminal at that point. Correct: use FCA with named place "Terminal X".
⚠EXW for export transactions from Switzerland/EU
Under EXW, the entire export customs clearance falls on the buyer. If the buyer is not an EU/Swiss entity, they cannot complete the export formalities. Better: FCA with the seller's named place.
⚠Treating CIF as a "safe" Incoterm
CIF only requires minimum ICC C insurance, which excludes many risks (e.g., seizure, theft). Buyers should additionally take out their own all-risks coverage (ICC A).
⚠DDP without checking import modalities
DDP means the seller takes on import duties and taxes in the destination country. Many countries require local VAT registration for this. Without it, legal and financial risk arises for the seller.
⚠Not specifying the named place precisely
All Incoterms require a "named place" (e.g., "FOB Hamburg"). The less precise the specification, the more room for disputes. Ideal: full address or terminal name.
⚠Confusing CFR and CIF
With both, the seller pays ocean freight. The difference: with CIF the seller is also obligated to arrange minimum insurance for the buyer. With CFR the buyer has no insurance coverage whatsoever.
⚠Mixing Incoterms 2010 and 2020
Contracts should always explicitly state the version used (e.g., "DAP Zurich Incoterms® 2020"), since CIP and DPU changed significantly between 2010 and 2020.
Related Tools and Information
- →Insurance Calculator – Calculate cargo insurance
- →Loading Meter Calculator – Calculate truck loading space
- →Chargeable Weight Calculator – Air freight volume weight
- →Sea Freight – LCL, FCL, Documents, Rates
- →Air Freight – AWB, Rates, Transit Times
- →Road Transport – FTL, LTL, CMR, ADR
- →Glossary – All Terms in International Trade
Incoterms® 2020 are registered trademarks of the International Chamber of Commerce (ICC), Paris. This simulator is based on the official rules of the ICC publication "Incoterms® 2020" and is for informational purposes only. It does not constitute legal advice. For binding information, consult a lawyer or foreign trade expert. As of 2026.