Incoterms Selector - Buyer and Seller Responsibility Split
Answer: Incoterms define who pays and who carries risk at each shipment stage; this selector maps the buyer and seller split instead of calculating a freight quote.
When goods are delivered to the named carrier or named place.
Multimodal shipments where the buyer books freight but the seller clears export.
| Cost or task | Seller | Buyer |
|---|---|---|
| Goods value | Pays | - |
| Origin handling and pickup | Pays | - |
| Export clearance | Pays | - |
| Main freight | - | Pays |
| Cargo insurance | - | Pays |
| Import clearance | - | Pays |
| Duty and import tax | - | Pays |
| Destination delivery | - | Pays |
| Unloading at destination | - | Pays |
Incoterms define the buyer and seller cost, task, and risk split for a shipment; use this page to choose the right responsibility pattern before requesting a freight quote.
How the selector works
This Incoterms selector is a broad reference tool, not a freight cost calculator. Choose a rule such as FCA, FOB, CIF, DAP, or DDP, then enter planning amounts for major shipment stages: goods value, origin handling, export clearance, freight, insurance, import clearance, duty and tax, destination delivery, and unloading.
The tool assigns each cost bucket to the buyer or seller according to the selected rule and shows the risk-transfer point in plain English. The amounts help you compare responsibility exposure, but they do not replace a carrier rate, customs broker quote, or signed sales contract.
FAQ
What are Incoterms?
Incoterms are standardized trade rules that explain who handles and pays for delivery tasks, freight, export clearance, import clearance, duty, tax, insurance, and risk transfer between buyer and seller.
Is this an Incoterms freight calculator?
No. It maps responsibility and planning exposure. Freight cost still depends on weight, CBM, route, mode, season, carrier, surcharges, and accessorial charges.
Which Incoterms are most common for cross-border ecommerce?
FCA, FOB, DAP, and DDP are common in supplier quotes for Amazon FBA, Shopify, and wholesale import shipments. FCA and FOB give the buyer more freight control; DAP and DDP move more delivery work to the seller.
When should I use FCA instead of FOB?
Use FCA when the shipment is air freight, express, truck, rail, or multimodal, or when delivery is to a carrier or forwarder before vessel loading. FOB is designed for sea and inland waterway shipments.
Who pays duty under DAP?
Under DAP, the buyer usually pays import clearance, duty, and tax. The seller normally gets the goods to the named destination before unloading, but does not clear import unless separately agreed.
Who pays duty under DDP?
Under DDP, the seller generally pays import clearance, duty, and tax, but importer-of-record rules and local customs compliance must be checked before accepting a DDP offer.
Does Incoterms decide ownership of the goods?
No. Incoterms covers delivery responsibilities and risk transfer, not title transfer, payment timing, product warranty, or customs valuation by itself.
What is the most important detail to write after an Incoterms rule?
The named place is critical. “DAP Los Angeles warehouse” and “DAP Los Angeles port” create different operational expectations even though the rule name is the same.
Comparison table
| Rule | Seller usually pays through | Buyer usually pays | Risk usually transfers | Best fit |
|---|---|---|---|---|
| EXW | Goods made available at seller premises | Almost all pickup, export, freight, import, and delivery work | Seller premises before loading | Buyer has strong origin-side control |
| FCA | Delivery to named carrier/place and export clearance | Main freight, insurance, import, duty, tax, final delivery | Named carrier or place | Air, express, truck, rail, and multimodal freight |
| FOB | Origin port loading and export clearance | Main ocean freight, insurance, import, duty, tax, destination delivery | On board vessel at origin | Ocean shipments where buyer controls freight |
| CFR | Freight to named destination port | Insurance, import, duty, tax, destination delivery | On board vessel at origin | Seller quotes ocean freight, buyer handles import |
| CIF | Freight and minimum insurance to named destination port | Import, duty, tax, destination delivery | On board vessel at origin | Ocean shipments where seller provides minimum insurance |
| DAP | Delivery to named destination before unloading | Import clearance, duty, tax, unloading | Named destination before unloading | Door delivery with buyer-controlled import |
| DDP | Delivery with import clearance, duty, and tax | Usually unloading and contract exceptions | Named destination after seller delivery obligations | Seller-managed landed delivery |
Dated facts
As of May 13, 2026, Incoterms 2020 remains the current ICC Incoterms rule set used in most freight contracts, and the 11 rules are EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, and DDP.
As of May 13, 2026, FOB, CFR, and CIF are sea and inland waterway rules, while FCA, CPT, CIP, DAP, DPU, and DDP are commonly used across multimodal shipments.
As of May 13, 2026, DDP remains the rule with the broadest seller import-side obligation, but it can be impractical when the seller cannot legally or operationally act as importer of record.
Frequently asked questions
- What are Incoterms?
- Incoterms are standardized trade terms that describe buyer and seller responsibilities for delivery, freight, export clearance, import clearance, duty, tax, insurance, and risk transfer.
- Does this Incoterms tool calculate freight cost?
- No. It is a responsibility selector. It can map planning amounts to buyer or seller exposure, but route, carrier, weight, CBM, season, and accessorials still require a freight quote.
- Which Incoterms rule is best for ecommerce imports?
- FCA, FOB, DAP, and DDP are common in ecommerce imports. FCA gives the buyer freight control after export clearance, DAP gives door delivery before import duty, and DDP shifts more landed-delivery work to the seller.
- Who pays import duty under DAP?
- Under DAP, the buyer usually pays import clearance, duty, and tax unless the contract separately says the seller will handle those costs.
- Who pays import duty under DDP?
- Under DDP, the seller is generally responsible for import duty and tax, subject to importer-of-record feasibility and local customs rules.
- Is FOB correct for air freight?
- FOB is intended for sea and inland waterway transport. FCA is usually the better Incoterms 2020 rule for air freight and multimodal freight.
- Can Incoterms replace contract wording?
- No. The named place, quote inclusions, exclusions, unloading, insurance level, customs role, and exception fees still need clear contract wording.