About this tool
An Incoterm is a three-letter trade term in a sales contract that says who arranges transport, who clears customs and where risk passes from seller to buyer. This tool shows all 11 terms as a journey you can see, rather than a table you have to read. Pick a term, then compare it with one or two others.
It is for sales and purchasing staff, forwarders explaining terms to customers and anyone reading a contract. The explanations are CDUK's own and come from a table we author and review. A customs view adds what each term means for UK customs value.
This page summarises Incoterms® 2020 in CDUK's own words. The ICC text governs, so read it before you rely on a term. Incoterms® is a registered trademark of the International Chamber of Commerce. The tool does not choose a term for you; the Incoterm Selector does that.
How this was worked out
What the tool does with your answers, in order.
Say how the goods travel, pick the term in your contract from the 11 Incoterms and say whether you are the seller or the buyer.
The journey shows each stage from factory to unloading, with a marker where risk passes to the buyer.
Read who handles each of ten points, from export clearance to unloading.
Add one or two more terms to compare; only the rows that differ are highlighted.
Open the customs view to see what to add or leave out of the customs value for a UK import.
Open the Incoterm Selector if you are not sure which term to use.
Worked example: Comparing FOB with CIF
- CompareFOB (Free on Board) and CIF (Cost, Insurance and Freight)
- Both are sea and inland waterway terms; risk passes once the goods are on board
- Main carriageFOB buyer, CIF seller
- Insurance obligationFOB none, CIF seller (minimum cover)
- All other rows match, so only main carriage and insurance are highlighted
Illustrative example in CDUK's own words. The ICC text governs.
Your questions, answered.
Short answers about the Interactive Incoterms Explorer.
What are the 11 Incoterms 2020 rules?
Seven apply to any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four apply only to sea and inland waterway transport: FAS, FOB, CFR and CIF. Each sets who arranges transport, who clears customs and where risk passes. This page summarises them in CDUK's own words; the ICC text governs.
Where does risk pass under each term?
Under EXW it passes when goods are made available at the seller's premises. Under FCA it passes on handover to the buyer's carrier, and under FAS alongside the vessel. FOB, CFR and CIF pass it once on board. CPT and CIP pass it at the first carrier. DAP and DDP pass it on arrival, DPU once unloaded.
What is the difference between DAP and DDP?
Under DAP the seller delivers to a named place and the buyer clears the goods into the country, paying duty and import VAT. Under DDP the seller also handles import clearance and pays those charges. For a UK import, a DDP seller must be able to act as importer, and one not established in the UK needs a UK-established representative.
Why is EXW often a poor fit for exports?
Under EXW the buyer is responsible for export clearance, which a buyer abroad often cannot do in the seller's country. FCA usually fits better because the seller clears the goods for export and hands them to the buyer's carrier. The right choice depends on your contract, so check the ICC text.
How do Incoterms affect customs value?
For a UK import, the customs value normally includes freight, handling and insurance up to the UK border. A term such as EXW, FCA, FOB or CFR leaves some of these costs outside the price, so they are added. CIF and CIP usually include them. The customs view shows this for each term; the HMRC guidance decides.
Where does the content come from?
It is authored by CDUK from the ICC Incoterms® 2020 rules, in our own words and diagrams. No ICC explanatory text or chart is reproduced. We review the content when the ICC publishes a new edition. The ICC text governs, and the ICC website is linked in the data sources below.
What does this tool not cover?
It does not give legal advice, review your contract or choose a term for you. It does not replace the ICC text, and it does not decide customs value, duty or VAT, which customs authorities determine. State the Incoterm in your contract with the named place and the edition, for example Incoterms® 2020.
Data sources
- ICC Incoterms® 2020 (summarised in CDUK's own words) International · On a new edition
- UK Trade Tariff: customs valuation guidance United Kingdom · Monitored
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.
