About this tool
An Incoterm is a three-letter trade term in a sales contract that sets who arranges transport, who clears customs and where risk passes. You do not need to know them to use this tool. Answer six plain questions, such as who should pay for the main transport, and it shortlists the terms that fit.
It is for people negotiating a sale or purchase who do not handle shipping every day. It uses CDUK's own mapping of answers to the 11 terms in Incoterms® 2020. One hard rule applies: sea-only terms are removed unless the cargo is bulk or loose by sea. Every match and every exclusion comes with a reason.
This page summarises Incoterms® 2020 in CDUK's own words. The ICC text governs. Incoterms® is a registered trademark of the International Chamber of Commerce. The tool does not draft your contract or advise on its terms.
How this was worked out
What the tool does with your answers, in order.
Say whether you are the seller or the buyer, so the wording fits your side.
Answer questions on how the goods travel, who arranges transport, who clears export and import, where risk passes and who insures.
Sea-only terms (FAS, FOB, CFR, CIF) are removed unless the cargo is bulk or loose by sea.
Each remaining term is scored by answers matched divided by questions answered; No preference is not counted.
Terms matching every answer show as Strong match, and up to three near misses as Possible alternative, each with its one difference.
Copy the contract wording, then compare the shortlisted terms in the Incoterms Explorer.
Worked example: Container by sea, buyer arranges transport
- Goods travelcontainer by sea
- Main transport arranged bybuyer; export clearance by: seller
- Import clearance bybuyer; risk passes: on handover to the carrier
- ResultFCA, Strong match
- Why not FOB? Container cargo is handed over at a terminal, and FOB is meant for cargo loaded directly on a vessel
Illustrative example in CDUK's own words. The ICC text governs.
Your questions, answered.
Short answers about the Incoterm Selector.
Which Incoterm should I use for container shipments?
Container cargo is normally handed to a carrier at a terminal, so the any-mode terms such as FCA, CPT, CIP, DAP, DPU and DDP usually fit better than FOB, CFR or CIF. The right choice depends on who should arrange transport and carry the risk. Answer the questions to see a shortlist.
Why are FOB, CFR and CIF removed for containers?
FAS, FOB, CFR and CIF are meant for goods loaded directly on a vessel. Container cargo is handed over at a terminal before loading, so risk would pass at a point the seller does not control. The tool removes these terms unless the cargo is bulk or loose by sea, and explains why.
What does Strong match mean?
It means the term fits every question you answered. A Possible alternative misses one answer, and the tool names that single difference. If no term fits all your answers, it says which two answers conflict and shows the nearest terms. It never forces one answer. A match is a shortlist, not a recommendation.
Can the seller handle import clearance?
Only under DDP. The seller then acts as importer and pays duty and VAT in the destination country. For a UK import the seller must be able to act as importer, and one not established in the UK needs a UK-established representative. If the seller does not want that role, a term such as DAP leaves import clearance with the buyer.
How should I write the Incoterm in a contract?
State the term, the named place or port and the edition, for example DAP [named place], Incoterms® 2020. The named place matters because risk and costs are tied to it. The tool gives you this wording to copy. Have your contract checked by someone qualified, as the ICC text governs.
Where does the logic come from?
It is CDUK's own mapping of each answer to the terms that are compatible with it, authored from the ICC Incoterms® 2020 rules and reviewed by us. No ICC text is reproduced. The mapping runs in your browser from a fixed table, so the same answers always give the same shortlist.
What does this tool not cover?
It does not give legal advice, draft contracts or consider commercial factors such as price, credit terms or insurance cost. It does not decide customs value, duty or VAT. It covers the 11 Incoterms 2020 rules only and the ICC text governs. Treat the shortlist as a starting point for your own decision.
Data sources
- ICC Incoterms® 2020 (CDUK's own mapping and wording) International · On a new edition
International · data checked 3 Oct 2026. UK government data is reused under the Open Government Licence v3.0.
Guidance only — not adviceWhat this tool is, and is not
This tool gives general guidance and indicative figures based on the information you enter and on official data available at the date shown. It is not legal, tax, customs or financial advice, it is not a ruling or a decision by any customs authority, and it does not recommend any course of action, guarantee, amount, route, supplier or service.
Customs authorities decide the classification, value, origin, charges and guarantee amounts that apply. You remain solely responsible for your declarations, guarantees, shipments and transactions, and for checking every figure against HMRC’s published guidance and the official sources before you rely on it or act on it.
Rates, rules and data can change without notice, and the results may be incomplete or inaccurate. To the fullest extent permitted by law, Customs Declarations UK accepts no liability for any loss, cost, penalty, delay or damage arising from the use of, or reliance on, this tool or its results.
