Choose the delivery term alongside the actual named place. Then agree separately on import formalities, cargo insurance, payment arrangements and anything the rule does not decide.
What Incoterms do—and do not do
Incoterms® rules allocate certain delivery tasks, transport costs and risks between seller and buyer under a sales contract. They do not automatically decide legal ownership, payment terms, title transfer or whether goods meet regulatory requirements. The exact named place matters: “FCA warehouse” is not a complete location when several warehouses exist.
The eleven rules in context
Seven rules can be used for any mode: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four are intended for sea and inland waterway transport: FAS, FOB, CFR and CIF. Selecting FOB for container cargo handed to a terminal can create confusion; FCA is often more suitable for containerised multimodal movements.
Cost and risk are different questions
Under CPT and CIP, the seller pays for carriage to a named destination, but risk passes earlier when the goods are handed over to the carrier under the rule. Under DAP, the seller bears risk to the named destination before unloading; DPU additionally requires unloading by the seller. Do not infer risk transfer from who pays the freight.
Use a precise contract reference
Write the three-letter term, the named place or port, and “Incoterms® 2020” in the sales contract. Confirm who handles export and import formalities and whether the named party can legally act as importer of record in the destination country.
Practical decision checklist
Before quoting, ask: Who books main carriage? Who pays export and import duties? Who takes risk during transit? Who insures the cargo? At what exact physical point does delivery occur? A short answer to each is more useful than choosing a term by habit.
Primary references
Rules, carrier terms and local procedures can change. Check the applicable primary guidance for your shipment.
Named place can change the whole quotation
FCA a supplier warehouse and FCA an export terminal involve different handover operations. In an enquiry, specify the exact named place, named rule and version; then separately agree how customs brokerage, carriage insurance and destination fees will be organised.
This is an illustrative planning example, not a current quotation, legal instruction or promise of transport capacity. Confirm shipment-specific requirements with the responsible carrier, broker or regulator.