Incoterms 2020 when buying engineering goods from India

Incoterms 2020 has 11 rules: seven for any mode of transport and four (FAS, FOB, CFR, CIF) for sea and inland waterway only. CIF requires minimum Institute Cargo Clauses (C) cover, CIP the higher (A) cover. Name the exact place with the rule. Transworld quotes on any of the 11.

By Prashant Dwivedi, Managing Partner, Transworld Commercial Enterprises · Published 11 Nov 2026 · Updated 11 Nov 2026

An Incoterms rule decides where our responsibility ends and yours begins: who books the main carriage, who insures it, and where the risk passes. Choosing it is a commercial decision; the important part is naming the rule and the place precisely.

The 11 rules

Any mode of transport (7): EXW, FCA, CPT, CIP, DAP, DPU, DDP.
Sea and inland waterway only (4): FAS, FOB, CFR, CIF.

Incoterms 2020 is the edition in force. ICC national committees report that work on Incoterms 2030 has started, with a launch planned for late 2029.

Three points that cause disputes

Insurance under CIF and CIP differs. Under CIF, Institute Cargo Clauses (C) remain the default cover; CIP requires the higher cover of Institute Cargo Clauses (A). If you buy CIF and need wider cover, say so in the contract.
DPU replaced DAT. The 2010 rule "Delivered at Terminal" became "Delivered at Place Unloaded", and the place need not be a terminal.
FCA and on-board bills of lading. Under FCA, the parties may agree that the buyer will instruct its carrier to issue an on-board bill of lading to the seller, which helps when a letter of credit requires one.

Always name the place

"FOB" alone is incomplete. Write the rule, the named place and the edition, for example FOB Nhava Sheva, Incoterms 2020 or DAP Rotterdam warehouse, Incoterms 2020.

What we offer

We quote on any of the 11 Incoterms 2020 rules, from EXW Mumbai to DDP at your site. Tell us the rule and named place you prefer when you send the enquiry; if you are unsure, tell us the destination and we will quote two options so you can compare.

Freight forwarding and customs clearance run through our group companies NSIL or iKargos, depending on the order. For planning how much fits in a container, the iKargos container load planner is free to use.

Sources

Incoterms® 2020, International Chamber of Commerce (accessed 11 Nov 2026)
Incoterms® 2020 (ICC submission, A/CN.9/1028), UNCITRAL (accessed 11 Nov 2026)
Incoterms® 2030: a Dutch working group is being formed, ICC Netherlands (accessed 11 Nov 2026)

Questions buyers ask.

Which Incoterms rules are for sea freight only?

Four of the eleven Incoterms 2020 rules apply only to sea and inland waterway transport: FAS, FOB, CFR and CIF. The other seven can be used for any mode, including multimodal container transport.

What insurance does CIF include?

Under Incoterms 2020, CIF requires minimum cover under Institute Cargo Clauses (C). CIP requires the higher cover of Institute Cargo Clauses (A). Agree wider cover in the contract if you need it.