Incoterms® 2020 for road freight
See how the rule in your sales contract splits the transport, the customs and the risk between seller and buyer.
| Rule | Risk passes to the buyer | Main carriage paid by | Export clearance | Import clearance and duty | Insurance |
|---|---|---|---|---|---|
| EXW | At the seller’s premises, once the goods are made available (not loaded) | Buyer | Buyer | Buyer | Not required |
| FCA | On delivery to the buyer’s carrier at the named place (loaded, if that is the seller’s premises) | Buyer | Seller | Buyer | Not required |
| CPT | On delivery to the first carrier | Seller | Seller | Buyer | Not required |
| CIP | On delivery to the first carrier | Seller | Seller | Buyer | Seller, ICC (A) cover |
| DAP | At destination, on the truck, ready for unloading | Seller | Seller | Buyer | Not required |
| DPU | At destination, once unloaded | Seller | Seller | Buyer | Not required |
| DDP | At destination, on the truck, ready for unloading | Seller | Seller | Seller | Not required |
How it is calculated
The table is a summary in our own words; the binding text is the International Chamber of Commerce (ICC) Incoterms® 2020 rules. Incoterms® is a registered trademark of the ICC.
Assumptions
- These seven rules work for any mode of transport, road included. FAS, FOB, CFR and CIF are for sea and inland waterway only and are not listed.
Questions
Who loads the truck under EXW?
Under EXW the seller only makes the goods available; loading is the buyer’s job and risk. If the seller loads in practice, FCA describes that better.
Why not use FOB for a truck?
Under FOB risk passes when the goods are on board a ship, so it does not fit road transport; FCA at the seller’s premises is the road equivalent.
Updated 20 Oct 2026
