Heads up on “Incoterms® 2026” or “Incoterms® 2025.” The current edition is Incoterms® 2020, in force since 1 January 2020. The International Chamber of Commerce (ICC) — the sole publisher of the Incoterms® rules — has not released a 2025 or 2026 edition; phrases circulating in forwarder marketing usually refer to the unrelated ICC Arbitration Rules. Always cite “Incoterms 2020” in your sales contracts.
Buyer vs Seller Responsibilities at a Glance
This chart is a quick reference for who pays which charge and where risk transfers under each of the 11 Incoterms® 2020 rules. For full term-by-term selection guidance — when to use FOB vs FCA, hidden costs, and common mistakes — see Incoterms explained.
How to read. S = seller’s responsibility. B = buyer’s responsibility. — = neither party is required to arrange it. The Risk transfers at column is shown separately because under the four C-terms (CFR, CIF, CPT, CIP), the seller pays carriage to destination but risk passes to the buyer at origin — these two points intentionally do not match.
| Term | Mode | Export clearance | Origin charges | Main carriage | Insurance | Destination charges | Import clearance | Duty & tax | Delivery | Unloading | Risk transfers at |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EXW | Any | B | B | B | — | B | B | B | B | B | Seller’s premises |
| FCA | Any | S | S | B | — | B | B | B | B | B | Named place of handover |
| FAS | Sea & Inland Waterway | S | S | B | — | B | B | B | B | B | Alongside vessel |
| FOB | Sea & Inland Waterway | S | S | B | — | B | B | B | B | B | On board vessel |
| CFR | Sea & Inland Waterway | S | S | S | — | B | B | B | B | B | On board vessel ⚑ |
| CIF | Sea & Inland Waterway | S | S | S | S (min) | B | B | B | B | B | On board vessel ⚑ |
| CPT | Any | S | S | S | — | B | B | B | B | B | Handover to first carrier ⚑ |
| CIP | Any | S | S | S | S (all-risk) | B | B | B | B | B | Handover to first carrier ⚑ |
| DAP | Any | S | S | S | — | S | B | B | S | B | Named destination, ready to unload |
| DPU | Any | S | S | S | — | S | B | B | S | S | Named destination, after unloading |
| DDP | Any | S | S | S | — | S | S | S | S | B | Named destination, ready to unload |
⚑ Under C-terms, cost passes at destination but risk transfers at origin — by design.
What each Incoterm signals at quote time
| Term | Common use note (China-to-US first-time importer view) |
|---|---|
| EXW | Quoted by many China factories, but you handle China export clearance and pickup—usually expensive and risky for first-time importers. |
| FCA | ICC’s recommended alternative to FOB for containerized cargo—seller delivers to your forwarder at port or CFS with export clearance done. |
| FAS | Rare in China consumer-goods trade—used mainly for bulk commodities or oversized cargo loaded alongside the vessel, not containers. |
| FOB † | The default China sea-freight quote—seller covers origin charges and loading; verify drayage, THC, VGM and document fees are all included. |
| CFR | Looks like “all-in to US port,” but risk transfers at China origin and you buy your own cargo insurance—budget separately. |
| CIF | Seller’s insurance is minimum coverage (Institute Cargo Clause C, ~110% invoice)—usually insufficient for high-value China imports; budget for top-up cover. |
| CPT | The multi-modal version of CFR—seller pays carriage to named destination, but risk transfers at first carrier; common for air or rail. |
| CIP | Like CPT but with all-risks insurance (Institute Cargo Clause A) since Incoterms 2020—safer multi-modal option than CIF for high-value goods. |
| DAP | Door-to-door from China without import clearance—seller delivers ready-to-unload at your US address; you still file Customs and pay duties. |
| DPU | Renamed from DAT in 2020—seller delivers and unloads from the vehicle at destination, but US import clearance and duties remain on you. |
| DDP † | Looks all-inclusive, but under US law you remain Importer of Record and liable for under-declared duties—verify your forwarder’s compliance practice. |
† Deep-dive method pages: FOB → FOB Shipping from China. DDP → Shipping from China to USA: Costs, Transit Times, and Best Methods for First-Time Importers.
What this chart does NOT decide. Incoterms® only allocate cost and risk between buyer and seller — they do not transfer ownership (your sales contract and payment terms do that), settle US Importer of Record obligations (you remain liable to CBP even under DDP), trigger ISF “10+2” filings (your duty as US importer for ocean freight), or guarantee China-side export compliance. 2025 reality check: under continuing USTR Section 301 tariff actions, a DDP “all-inclusive” quote ≠ your final landed cost — duty rates can shift mid-shipment and the importer of record absorbs the delta.
FAQ
Is there an Incoterms® 2026 or 2025 chart?
No. ICC publishes Incoterms® on an irregular cycle, and the current edition is still Incoterms® 2020. The phrases “Incoterms® 2026” and “Incoterms® 2025” appearing in some forwarder marketing are either errors or confusion with the unrelated ICC Arbitration Rules 2026 (which take effect 1 June 2026 and have nothing to do with international trade terms). Use Incoterms® 2020 in all current sales contracts and shipping documents.
What’s the difference between cost transfer and risk transfer?
Cost transfer is the point up to which the seller pays for shipping, insurance, and local charges. Risk transfer is the point at which loss or damage to the goods becomes the buyer’s problem. For most terms these coincide. For the four C-terms (CFR, CIF, CPT, CIP), they intentionally split: the seller pays carriage to destination, but risk transfers to the buyer at origin. This is the single most common surprise on a first China import — if cargo is damaged mid-ocean under CFR, the buyer files the cargo-insurance claim even though “shipping” looked seller-paid.
Which Incoterm should I quote on for my first China import?
The chart shows the cost-and-risk rules; the right Incoterm for your shipment depends on container vs LCL volume, your forwarder’s capability, and your appetite for compliance work. As a quick heuristic: FCA for FCL with a trusted China-side forwarder, FOB when your US forwarder books the carriage, DAP for door-to-door without giving up US Customs control, and DDP only after vetting your forwarder’s IOR compliance practice. For the full selection walkthrough — including hidden cost traps for each term — see the Incoterms explained pillar linked at the top of this page.
